Los Angeles herald., 1892-02-26
Mr.. Mcdonald ReYerses the
Usual Order.
His Statement Regarding the
Toronto Bank.
He Alleges That the Proceedings
Have Ne Basis.
Mr.. Mcdonald Makes a Full Statement
of the Matter-Letters Which
He Has Received-Other
Details.


was seen yesterday with reference to
the telegraphed statement in the HER
AID that proceedings had been insti-
tuted in Canada to secure extradition
papers for charge of forgery in con-
junction with the affairs of the bursted
Central bank of Toronto.
81 have resided here for five years."
said Mr.. Mcdonald, s'and before coming
here was a stakeholder of the Central
bank. The bank had a capital of $780,
600, and deposits of $3,0OO,0OO. l was
then wealthy, and owned $4,000 of
stock in the bank. The management of
the bank was in the hands of Cashier
Allen, and he made mess of the whole
concern. The bank closed its doors for
the prescribed sixty days, but before it
did 90 advanced $4,000 in vain en-
deavor to keep the bank from failure.
Shortly after the bank temporarily sus-
pended Allen came to me and made a
confession. He told me that he had
made away with $500,0O0 of the banks
funds, which he had been blackmailed
out Of by others. He said that the funds
of the bank were all gone, and that he
was powerless to replace a cent.
After the bank subsidized the men of the
town pointed to myself and others
who were interested, and said that it
was impossible that there was any
thing wrong. | gave all / had to save
the bank, and if / had SO desired l
could have easily pulled out and saved
5000, 900. As it was, brought my wife
and two children to Los Angeles, and
when II arrived here had but $50 on
earth. Shortly after the bank failed it
reopened its doors, and long ago has
paid every dollar of the deposits and
circulation.
ssAt the time of the suspension the
liquidators represented to the court
that there was nothing in the assets of
the bank. The court, however, made
an order, directing that the remaining
assets be sold, and a. man named Hoga-
boom bought them. He saw the Hon.
s. H. Blake, my solicitor, and brother
Of the ex-premier, and said that if
would pay him $4,000 he would
release me from all liability. When
that offer was refused he said
that if my mother would pay him
$1,000 he would be satisfied. OF
course, this was refused and then Hoga-
boom instituted suit to recover $3.50, 900.
This is the suit which is now pending,
and in connection with the criminal
proceedings connected Herewith they
hope to extradite me-" Mr.. Mcdonald
then handed the reporter the following
letter:
TORONTO, Feb. 1, 1892.
D. Mitchell Mcdonald, Esq, Counsellor at Law,
Los Angeles, Cal:
MY DEAR MCDONALD: l was told to-
day coDfidentially that your brother
Charles, and Charles Miller the solicitor,
are making Investigations with the view
of taking proceedings against me for
forgery in connection with a subscrip-
tion to stock in which the names of
"William Barrett and CHI J. or A.. j.
Mcdonald or Macdonnell" appear. I do
not want to let any time pass without
letting you know this in order that you
may give any answer to it that would be
present to your mind.
III. BLAKE.
"Under the above am charged with
forging stock under two names. The
Mcdonald in question is DIR. Mcdonald,
a brother of mine, who lives in San
Francisco. The power of attorney for
Dir. Mcdonald is held by my solicitor.
1he following letter will throw some
light on the subject:
ToRoNro, Feb. A, 1892.
D. Mitchell Mcdonald, Esq, Counsellor-at-Law,
Los Angeles, Cal.
MY DEAR MCDONALD: Your brother
Frank has just come in, giving me the
information that / conveyed to you in
one of my recent letters. Charles tele-
phoned him and called upon him this
morning. informing him that it was the
intention of your enemies to have you
arrested for forgery to have you brought
back to Toronto, and then to have you
capiased. Your brother Frank was, I
need scarcely tell you, very much
angered at what was told him. He
wanted Frank to come over and tell me,
and also wanted him to 60 down ard
see Charles Millar. Frank, very prop
erly, at once said the whole thing was a
plan to blackmail, and that he
would neither go to see the one nor
the other.
The idea would be to lay some charge
here, and to telegraph to Los Angeles,
as was stated that they had named the
person that was to carry out this pro-
gramme. The whole looks as if it were
an attempt to frighten you, in Los An
geles, and your mother, through US
here. to give them the $4,000 they want.
Now, do not think there is the slight
est fear on this branch of the case. 1
cannot believe that you were guilty of
the crime of forgery"
IS. II. BLAKE, @. c."
p Mr.. Mcdonald then handed the re-
porter copy of the statement Of the de-
Tense before the high court of Justice in
Toronto. The following paragraph ap-
pears:
In the month Of August preceding the
date of the closing Of said bank appli-
cation was made to the defendant for
the further advance OF $4,000 for the
benefit Of the said bank, in answer to
which check was given on the indi-
yidual account of the defendant for a
sum of $32, 900, and special deposit re-
ceipt issued to him to cover such ad-
vance, but thereafter the deposit receipt
issued in the name of the financial
agents who advanced such sum to the
bank and the first mentioned deposit re-
ceipt was not used. The defendant was
obliged to give the financial agents MAX
ing such advances Insurance stocks to
the value Of over $4,000. The defendant
got no benefit from this. transaction but
was charged with the said sum of $32,-
600 and gave up the said securities,
which matters have not been taken into
account in the dealings with the defend
- r,.1 az nax, b and II, roo.,oof ~ fhoca