The Birmingham age-herald., 1914-02-10
President Mercantile Bank
Confesses to Wrecking
Institution
SAYS WALL STREET
PROVED UNDOING
{. Hunter Raine Lodged in Jail.
Details of Embezzlement Show
the President Directly
Responsible

Memphis, Tenn, February with the
discovery tonight that of S527, ,s67 listed
as actual cash on hand when the bank
closed its DOORS $4,000 was represented
by the personal checks of the president,
c. Hunter Raine now imprisoned
charged with embezzlement, the amount
of the apparent discrepancy in the ac-
counts of the Mercantile bank here ad-
vanced to more than a million dollars.
The exact amount Will not be known
until the audit being made under the
direction of J. L. Hutton, state superin-
tendent of banks, is completed. This will
requife several days.
1t also was learned tonight that at the
time the last published statement gave
s275,444 as the amount due to banks and
bankers New York banks held paper in
dicating loans of almost 100000
This statement, published January 8,
proved the undoing of the Memphis in
etitution, officials of the American Ex-
change National bank or New York
starting the investigation which culmi-
mated in the disclosure yesterday that
the local bank was insolvent
Begin to Audit Books
G. I. Haigh, vice president of the
American Exchange bank, came to Mem
phis early last week and began an audit
of the books of the Mercantile bank. He
was Joined Saturday by W. II. Bennett,
also vice president of the New York
bank. Both officials assert that loans
made by their bank are amply protected
by collateral
Finding of three personal checks to-
night revealed what is believed to have
been the method used by Raine, who ad-
mtted his guilt today when arraigned
on warrant charging embezzlement
From time TO time, it is stated, Raine
presented his checks, which were cashed
and at his direction carried as cash on
hand At intervals, il is alleged, drafts
on New York cotton man, made pay
able at the American Exchange National
bank the New York correspondent of the
Mercantile bank, would be exchanged By
Raine for his personal checks. These
amounts were charged to the New York
bank, and other officers assert they pre-
sumed Raine sent the drafts to the
American Exchange bank in the regular
course of the business. As result the
books of the suspended bank show a
credit in New York of approximately
Sj5o09l which it is asserted does not
exist
Saturday Statement
According to a statement made up at
the close Of business last Saturday, the
Mercantile bank held deposits of $1,3S1 525,
of which Approximately $340,O was in
savings accounts. In addition, 81, GIG, 500 in
certificates of deposit we've outstanding.
About two thousand commercial and for
thousand savings accounts were carried.
With it ALL Raine, in his cell at the
Shelby county jail. has no comment TO
make of the bank s affairs other than to
admit his guilt and absolve his fellow
officers of implication.
My life is spent he told a friend to-
night. when Wall Street stacks the
cards against you the end is there
At the prison Rane has no special
privileges, The cell TO which he was as
signed when he was brought from his
home, one Of the most 1oalatal in Mem
phis. is furnished with a chair, bed and
unvarnshed table and was last occupied
by a highwayman.