The Tabor independent. [volume] (Tabor, S.D.) 1913-19??, 1914-02-12
HEAD or MEMPHIS
BANK Is ACCUSED
OF HUGE SWlNDLE

Memphis. Tenn. Feb. 1o-C. II.
tile bank, one of the leading finan-
cial institutions of the city, was
charged with embezzlement In a
warrant sworn u today by u. N.
Estes, county attorney. The &C
counts of the bank, which is a
state institution, are alleged to be
short between 100000 and
$1,000, 900.
Memphis, Tenn, Feb. 10.-Ten d.
rectors Of the Mercantile bank, one Of
the most important financial in
situations in the city, today filed a
petition in chancery court, charging
that the bank vas insolvent as the re-
suit of the alleged misappropriation OF
more than $3.50, 900 by c. Hunter Raine,
president Of the institution.
In the petition Raine was held solely
responsible for the apparent shortage.
approximately $7SS, S04, which, 1t Is
charged, he obtained by q system of
handling the banks drafts, property
and exchange in such n way as to de-
ceive the directors and to conceal his
which it was alleged, he lost in
speculation.
The petition places the liabilities Of
the bank at approximately $2,196,594
with assets of $1,408,0 89. In a pub
lished statement January 9, liabilities
were given as $2,4S6, 1877. AT that time
the total deposits were $1,861, 100, OF
which $344, 1913, were savings accounts.
The bank is capitalized at 100000 and
has a surplus of 100000.
, Resources, loans and discounts at
the time of the statement, amounted to
$1,130,496 actual cash on hand was
$424, 1874; sums due from other. banks
amounted to $4S9, 165; cash items in
transit amounted to $137,77S. These
amounts with other items balanced the
amount given as Liabilities.
The alleged discrepancy vas dis
covered by a representative Of q New
York correspondent of the bank who
was sent to Memphis last week to
audit h books of the Mercantile bank.
when loans requested were found to be
out of proportion to the amounts
usually asked for at this season Of the
year. His report to the directors yes
terday, which brought the situation to
a climax, was the first intimation that
the bank was not in a prosperous con-
dition according to the directors.
The bank was ordered to remain
closed today by state banking officials,
who are making an investigation of its
affairs.
It is stated that President Raine,
who attended yesterdays meeting
absolved all of the officers and di-
rectors Of the bank of implication in
alleged shortages and rendered his
personal estate, which he valued at
$780, 900 to the bank. So far he has
made no formal statement.
g. G. Hutton. state superintendent Of
banking, arrived here today from
Nashville and was appointed receiver
for the bank, in accordance wiz. q
chancery bill filed by attorneys repre-
senting the banks directors. Investi-
cation of the condition OF the banks
resources was started Immediately.
There was little excitement evident
in financial circles. ]. G. Ottinger,
president Of the Memphis Clearing
House association, issued q statement
declaring none Of the members Of the
association were affected by the failure
of the Mercantile bank.
The warrant was served on Mr..
Raine at his home. He was taken be-
fore Criminal Judge Palmer, where he
pleaded guilty. Despite his protest that
he did not want n bond fixed, Judge
Palmer placed the amount at $3.50, 600,
but Mr.. Raine declared he would make
no effort to get the security and &C
companied a deputy sheriff to the
county Jail.