Los Angeles daily herald., 1889-12-28
reputation, in his feelings and in his
business. He asks $50, 900 damages.


The plaintiff put Officer Van Luven
on the stand, who was appointed q
Deputy Sheriff to accompany McDougall
to Elsinore and back. He was followed
by the plaintiff himself, and from his
story the most interesting presentation
of the case from public point of view
may be cleaned.
McDougall told about his leaving
Saulte st. Marie, in the province of On.
tario, Canada, in the fall of 1887. He
was coming to California. Before he
left he went to the bank at his place and
asked them how he could get $1,000 to
Los Angeles most safely. He had
been q farmer and merchant
at Saulte st. Marie, but had done
very little banking business in his life,
owing to the fact that no bank existed at
the place until year or so before his de-
parture. The bank officials told him
they would give him New York draft
and write letter to bank in Los An
geles, which would serve to indentify
him on his arrival here. They named
the Los Angeles National Bank as the
one they would write to. In due time
McDougall reached Los Angeles, after
going to Toronto, to Chicago, stopping
ten to fifteen days in Elsinore and San
Diego. He inquired where the bank
was, and finding it presented his draft
for 81 800. The bank referred to the
letter from the Saulte st. Marie bank,
which they had McDougall en-
dorse with his name. He took
a certificate of deposit for the
money; then drew a check for $500,
which he was paid. This was Decem ber
2, 1887. After this he went about Los
Angeles taking in the situation. He
thought things here were at a pretty
high pressure at the time, and met real
estate agent from Santa Ana, who in
duced him to go there and take look at
things. He then went back to the bank
and drew $500 in cash against his
account, and got certified check for
$500, thus drawing out all his deposit.
He went on the evening train to Santa
Ana, and there with his cousin, who had
accompanied him from the East, he
| bought lodging-house. In part pay.
ment he gave the check certified to by
Mr.. Howes for $500 This check was
| deposited for collection in the
bank at Santa Ana, and two or three
days afterward he was notified by the
Santa Ana bank that payment was re-
fused by the Los Angeles National Bank
in spite of the fact that it was a certified
check. McDougall took the next train
| to Los Angeles to see what was the
trouble. de got here before the bank
opened and went to the postoffice, where
he received letter from the bank asking
| him to call. As soon as the bank opened
he went in and asked about the matter.
Mr.. Howes and Major Bonebrake told
him that by brokers' circular from New
York they had learned of the failure of
the bank at Saulte st. Marie. They told
him the advices we're to the effect that
depositors would get dollar for dollar,
and that the bank in New
York on which the draft was
made held SIS, 900 of the funds of the de-
funct concern. This MIR. Howes told him
they had attached and that it was in the
hands of the Sheriff of New York. At
the same time they demanded back the
81 500 McDougall had received or the
draft. He told them he had paid some
of it for the business at Santa Ana and
the rest he had sent to his wife at Elsi-
more. The banker insisted on having
the money, but McDougall was not
able to return it. After discussing the
matter some time longer he was going
out of the bank to return home when Mr..
Howes laid his hand on his shoulder
and said: Here, you can not go. This
is Captain Darcy, Chief of Police. Cap
tain Darcy this is the man we wish you
to arrest" Darcy had just come in at
the door rs McDougall attempted
to 60 out. The Chief took him
to the station and put him
in charge of an officer. He was
detained until train was going out to
Elsinore, when he was turned over to
Van Luven, who had orders to take the
man to Elsinore and "bring back 81, 800
or the man." McDougall went to Elsi-
more with the officer. Was kept under
restraint there. Not being able to get
the money, he was brought back. He
demurred to coming, when the officer
told him If he did not come quietly he
would put the handouts on him and
bring him. He showed his papers as a
Deputy Sheriff, and said: 81 have au-
thority to bring the whole - family"
Mrs. McDougall was i'll at the time. Not
wishing to have his wife disturbed nor to
be dragged through the country with irons
on he came. When he got here he was
taken to the Police Station. Mr.. Howes
came there. A conference was had
with Justice Austin. McDougall pro-
tested his innocence of any intent to
do wrong. He had offered to indemnify
the bank against any loss that might be
suffered on account of the check; but
said he was unable then to return the
money. He was taken to the Police
Station again and shut up in a cell,
where he remained for an hour or two,
when he was released.
The answer made formally to the COM
plant on behalf of the bank denies that
McDougall was incarcerated at the in.
stance of the bank; and then goes on
to state their story as to the
draft and checks. 1t is substantially
as above, excepting that it alleges that
McDougall specifically agreed to let the
money lie in the bank until it was col
lected in New York, but that in violation
Of this contract McDougall drew the
money through the teller and without
the knowledge of Mr.. Howes, the CASH
ier. The plaintiff will make damaging
use Of the certified check signed by Mr..
Howes to upset this theory.
The case is adjourned until Tuesday,
during which day the bank will present
in full it's side Of the matter.
During the progress of the proceedings
yesterday the fact was developed that
the Los Angeles bank actually recovered
the full. amount of the $500 through
the New York bank on which the DRAFT
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