The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1914-02-12
|DEFAULT|NG BANK
HEAD IS JAILED
President of Wrecked Memphis
Bank Admits Guilt.
WILLING TO TAKE PENALTY
Cotton Speculation 10 Cause OF Defai-
Acknowledgement Shortage viii
Reach $4,000 - Liabilities
Placed at Over Two Million.

Memphis, Tenn, Feb. 10.-Acting
under supervision Of J. l.. Hutton.
state superintendent of banks ana re-
ceiver for the Mercantile bank. Off
GERS of the institution. which closed its
doors yesterday morning, are examin-
ing the books In an effort to determine
the exact amount of shortage, for
which c. Hunter Raine, president Of
the bank, asserts he alone is respon-
sible
report In circulation late Monday
was that a director of the Mercantile
bank, one OF the heavy losers In the
failure, had announced that he was
willing to stand his share OF the loss
necessary to pay savings department
depositors. II is understood that II
other directors agree it will cost this
director $4,000. His loss in the fail
ure IL said to amount to $4,000.
Up until late hour. Receiver Hut
ton had reached no definite accounting
General indications are, 1t Ia said.
that the audit will show deficit IN the
Iseighborhood Of 100000
Raine 10 Arrested
Mr. Raine has made no effort to give
bail, according to attaches of the Grim
inal court HG was arrested shortly
before noon on a bench warrant charg
ing embe1zlement of s78S, 804-76 of the
banks funds, and WIS taken IL the
county Jail.
The bank president was escorted be
fore Judge Palmer by Sheriff Tate and
Deputy Sheriff Nj. w. Palmer Taking
the warrant under which the banker
YVES arrested and which was sworn out
by Attorney General Estes, the court
read the document to Mr.. Raine and
asked him If he had anything to say
Il am guilty." replied the banker
Mr.. Attorney General" continued
the court, what bond do you recon-
mend@
Before the attorney general could
reply the banker interrupted with: Il
don't want to give bond; ! want to 60
TO Jail"
He wHs taken to the Jail by Deputy
Sheriff Palmer. When he was searched
at the jail. preparatory to being com
mitted to cell, he informed the iailer
that you needn't be afraid. I'm not
going to make any trouble"
Bond Fixed at $25O,oO0.
Judge Palmer fixed the bankers
bond at S250,000. 1t is understood,
however. that Mr. Raine will make no
effort to furnish bail. His attitude is
taken by the county authorities as In,
dicating his willingness to take with
out resistance any punishment that
might be meted out by the criminal
court.
Criminal proceedings against the
banker came as the elimination of
the banks failure. An application for
the appointment of ]. l.. Hutton, state
superintendent Of banks, as receiver
for the Mercantile bank, was granted
by Chancellor Fentress. Mr.. Hutton
arrived in Nashville early in the day,
and Immediately upon the chancery
courts decree naming him receiver,
took charge OF the banks affairs.
The bank was Off cially closed fol-
lowing an order by the board OF direc-
tors, who subsequently filed bill In
cbancery, charging c, Hunter Raine.
president Of the Institution. with hav-
ing lost, through cotton speculations.
$7SS,S04.76 of the banks funds.
Owing to the banks extensive oper-
atoms. complete report OF the re-
eral days.