Hi Sherri - I just started working on the McDougal lines in my family and came across your very old query. To let you know, I have already found 3 Stephen P. McDougal's in the line and I think you may have your Stephen's mixed up ad to b and d. As I say, I am just starting the searches but let me list the 3 Stephen's I have so far - still a long way to go:
Stephen P McDougal, b 24 Feb 1845; d 10 Oct 1865 at Davids Island, New York; Civil War, d of typhoid fever at the hospital on the island, son of Alexander Duncan McDougal and Susannah Bubar, never married, no children
Stephen P. McDougal, b 9 Jun 1865 in Grand Falls, New Brunswick, Canada, d unknown, m Frannie Case, son of William Harrison McDougal and Margaret Morris
Stephen Prescott McDougal, b abt 1889 in Caswell, Maine, d 1 Jul 1961 in Fort Fairfield, Maine, m Susan Caldwell 2 Nov 1914 in Limestone, Maine, son of Henry W McDougal and Mary Jane Bell.
William Harrison McDougal was also the son of Alexander Duncan McDougal and Susannah Bubar
Henry W McDougal was the son of William Harrison McDougal and Margaret Morris
So you can see, they are all tied in together.
You should be able to contact the library in Caribou, Maine and resquest that they do a search of the Bangor Daily News for July 1961 for Stephen's obituary; they may charge a small fee but it wouldn't be much - but the Stephen that d in 1961 may not be your grandfather, given the b date you gave. I don't know if the Fort Fairfield library would have the Bangor Daily News archived there or not but that is also an option. If you could give me a line from Stephen's father down to you, I could see if I have anything in my records and if so, would be happy to send it to you. As I mentioned, I'm just starting on the McDougal line, so there's a lot of holes - I keep getting side-tracked to other relatives!
Leslie