James Mcdougal Pleads Innocent

President Clinton’s business partner in the Whitewater land venture entered a not guilty plea on Tuesday to 19 counts of conspiracy, fraud, making false statements, and other charges involving millions of dollars of federally backed loans that went sour. At his arraignment before a federal magistrate in Little Rock, Ark., the former partner, James McDougal, was given a trial date of Oct. 10.

McDougal owned and operated Madison Guaranty Savings & Loan until 1986. Three years later it collapsed at a cost to taxpayers of more than $60 million. He has been accused of defrauding the institution of more than $3 million for several business ventures.