Daily Los Angeles herald., 1879-04-16
xle Made His Bea and lie Must
Lie In II.

Our distinguished fellow citizen,
ex. Governor Downey, has procured
to be published in the Evening En-.
press, under the title IA letter
"from the Counsel in the case of
"the Farmers & Merchants Bank
tvs. John G. Downey," note ad-
dressed to him by the Messrs. J. r.
Mcconnell, j. A. Graves, Howard,
Brouss,au & Howard and j. Il.
Eastman. Imprimis. the very title
of this communication as published
is fraud. 1t is not from the coun-
sci in the case named but from the
attorneys of John G. Downey, the
attorneys for the bank not having
united in it. In addition, the name
of Judge Brunson, one of the ex-
Governors counsel, is not append
ed to it. Secundus, the subject
matter of this exculpatory mum
ication is identically what the
counsel of John G. Downey ad-
vanced at the trial in the Court be.
low and In their arguments before
the Supreme Court. 1t was brushed
aside like chaff by tribunal that is
not,as it ought not to be, respecter
of persons. 7'ertius, the fact that
the speculation did not yield large
profits Is neither here nor there. 1t
was expected, at the time, to be a
very lucrative speculation, and the
Ex-Governor clearly intended that
the stockholders should not even
smell the aroma of dividend. 1t
should be remarked, in justice to
Mr.. Childs, that as soon as he was
made to understand the legal as.
poets of the question he at once, as
an honest man wnnld. tnrnnd ovoT
his interest In the transaction to
the bank. Not SO the Ex-Governor.
He hung on like grim death until
the righteous decision of the Su.
preme Court gibbeted him to the
public gaze.
Since the Ex-Governor is deter
mined to agitate the matter. we
avail ourselves of the following
clear statement OF the case which
we find in the San Francisco IStocI
Report, under the caption of sex.
Governor Downey's Grab"
The Stock Report referred the
other day to the neat little thing il
banking attempted by Governor
Downey, of Los Angeles,and which
came out by reason of a suit on ths
part Of the Farmers & Merchants
Bank to recover the money involv
ed and which was grabbed by Dow
ney, its President. Since that pub.
lioation we have seen the decision
of the Supreme Court, In favor O
the bank, and the circumstances oil
the grab are related by the Judges
as follows:
The circumstances appearing are tha
certain persons had purchased the VIII
hart tract of land, situate in the city O
Los Angeles, upon which they had pay
ments to make. They had also agreed L
sell portion of the same tract TO thu
Pioneer Building Let Association of Eas
Los Angeles, at considerable advance
upon the prices they had agreed to pay
to the Wilharts. In order to provide
themselves with money to pay to the
Wtlharts they applied to Childs, who
l rUo q rNnn NJ q !, af hn h.,, ~
corporation, plaintiff here, but without
success. At the instance OF Melchert and
Lindenfeldt. Childs brought the matter
TO the attention OF the defendant, who
poration, plaintiff here, and at the sam G
time acting as Its President, and these
two agreed to furnish the sum required
upon condition that they should become
made to the Pioneer Building Lot Associ.
alton, to the extent of one-third of the
net profits. The loan was accordingly
made, and note therefor taken, bearing
ter per cent. per month, running on its
face to the bank and executed by Lin.
denfeldt and Melchert as makers. The
bank subsequently, and upon ascertain.
claimed to be entitled to its benefits, and
demanded of Childs and the defendant
Downey that they assign to 1t the agree
ment and all benefits derived or to bt
l
Childs complied with the demand an.
executed the required assignment, bu
the defendant refused, whereupon this
action was brought. The Court below
gave judgment for the plaintiff in ac
c0rdance with the prayer of the com
p'aint, from which Judgment and from
an order subsequently entered denyins
his motion for new trial, the defendan
has brought this appeal.
| The Court closed its decision will
a scathing rebuke Of Downey's &C
tion, and sternly enunciated tn,
principle that an officer of a bank
ing corporation is guilty of fraut
: who applies to his own use exclus
lively the profits of an investmen
of banks funds. And this is tn
gentleman who talks of "regicides'
and the "shocking degeneracy O
good morals' which nothing but {
new Constitution can check!
We admit that 1t is in
opportuns if not unfortunat
that Ex-Governor Downey shoult
appear as lecturer upon law ant
public morality at such time a.
this. But then the predicament i.
of his own making.