The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-07-12
$35, 900 Goes Last Day.

Ddnk, Wnen as a matter OF fact, no
such sum had been sent to the New
York institution.
$50, 900 Goes Last Day.
After examination time, the amount
held as credit in New York would be
cial.
On Feb. Z, 1914. the day of the crash
the cashiers special item stood at $410,-
900. The day before it had been $685.
GOO. 1t had so stood since Jan. S, 1914.
The amount of the increase, 1876, 900,
nae gone to the account of Mr.. Raine,
Top figures were reached in the
cashiers special item on Dec. 81, 1913,
a trifle more than a month before the
crash, when 1896, 900 was deducted from
the cashiers special n put down as
a credit to the New York account. On
this date further sums of $35, 900 and
$4,000 were added to the 1896, 900, TO
reduce the cashiers special for exami-
nation. The amount on paper thus re-
allied was 1851, 000-money supposed to
be on hand in the bank vaults which
was not there, The $35, 900 was raised
Raine on the Winona Oil Mills, Winona,
Miss, and the $50, 900 on a note from
H. L. Albert, England, put up with
the bank for collection, but used only
during the examination period as an
on Dec. 20, 1918, the cashiers special
was increased by the sum of $25, 900,
and on that same date the account of
Madison Foster was credited with that
sum.
On Dec, 20, 1918 a 500, 900 cashiers
special increase and a credit to Raine's
account of 100000 was shown.
various checks were read and marked
exhibits. All were drawn by Raine to
cash and were not Endorsed.
Cotton Market Hungry.
Dec. IS, 1918, $40, 900; Dec. Is, $50, 900;
Dec, II, $50, 900; Nov. "a, $40, 900; Nov,
8. $50, 900; Nov. Z, $50, 000-these tell
the tale of the sums required for some
purpose, presumably lost on the cotton
market.
But it was not always a loss. The
bank recovered at times, too. On Sept.
%, 1913, the cashiers special was re-
duced by $104, 500. This amount was
paid by a $100, 900 check from Madison
Foster and a $4,000 check by Raine.
On Sept. 10, 1918, a further decrease
was made In the cashiers special of
check from Madison Foster, ~
These are only a portion of the huge
sums OF money jockeyed about. and
dealt with on the witness stand by
Wilkes. 1t would take an expert ac-
oountan with a half dozen sharp lead
H'oh AiAANAlNO.
n defendant, Raine, though, with
only two lead pencils, took notes con-
stantly through the testimony of Wilkes.
he Jotted down figures and never was
lost for a m in following the fl
nancial maze, apparently.
Wilkes is now employed in st. Louis
as assistant to the president of the
National Bank of Commerce. He said
he spent about two years on the short
age OF the Mercantile bank, and in re-
Iatlon with suits against brokers in
New York. "
Defalcation Shown.
The story of the wrecking of the old
mercantile bank, and the manner in
when the institution was bilked OF
*i,osl, 600, began to unfurl itself Friday
A. Williams, then a bank examiner.
now cashier of the Memphis branch of
me Federal Reserve bank of st. Louis,
and N. B. Gentry, also a bank ex-
ainlner at that time, now employed NV
the Union and Planters Bank and Trust
COMPANY told how they checked up the
financial condition of the bank on Mon
gay morning, Feb. 5, 1914, and found a
total shortage Of $l,056, 900. which was
covered by checks drawn by Raine,
which aggregated 81, 091, 900.
The inside history of the bank failure,
never before told In a court of law, was
SNasS Wy CuDt. IF "A. SDeeQ, In person.
and Gen. Luke r. Wright, by deposi,
ton. They were directors of the bank
at the time of the crash.
Among the shortages found by the
examiners was $4,000 'in cash on
hand" The daily statement book OF
the bank, and the %teller's cash book
each showed $52S, 900 cash on hand,
Count of the money revealed $14O, 900
short. Another item Of 1886, 900, sun
posed to be held in New York banks to
the credit of the Mercantile, was not in
the New York banks. Bills of exchange
showed a shortage Of $50, 600 also RE
sl4o,o0o was carried as cashiers
Wright Small Stakeholder.
Gen. Wright owned only $500 worth
OF Mercantile stock, he said. When his
son, Maj. f. E. Wright, was killed in a
railroad wreck, Gen. Wright was asked
by Raine to become a director and at
torney for the bank. Maj. Wright had
been a stakeholder and director in the
bank. ="
Gen. Wright told of being called to
the Hotel Chisca on the morning of
Sunday, Feb. 7, 1914. He found Raine
there, with two vice-presidents Of the
New York bank which was supposed to
have the $3.50. 900 to the credit of the
Mercantile bank. Here the news of the
banks real financial standing came to
him, he said.
He said that Raine asked permission
to open the bank Monday morning, de-
claring that he could straighten every
thing out. This Gen. Wright would not
agree to. and at a meeting Of the bank
directors at 10 o'clock it was decided
to place the institution in the hands OF
the state bank examiner.
"Raine told us he lost the money
specializing in cotton, and that he was
prepared to share the consequence
he said,
Raine at first declined to name the
brokers he had lost the money with,
but later privately told Gen. Wright,
after Gen. Wright had pointed out that
the directors Of the bank might be
blamed, False entries covered up the
losses. Gen. Wright said.
Capt. Speeds testimony was prac-
tically the same. He paid Raine the
compliment Of being as good a banker
as any man in Memphis.
Judge Becomes Witness.
A resolution from the minutes of the
bank, which empowered the president
and cashier to borrow money on the
banks credit, was read by Hugh
Magevney, counsel for Raine.
"All banks do that" said Capt.
Speed.
That Raine was not authorized to
make loans to himself, but only to Dor
row for the use of the bank. was a
stoltIhtht VI Ndpls Speed |
This would seem to knock out the
theory that Mr.. Magevney will at
tempt to place Raine's populations in
the light of a civil matter, instead Of
a criminal one. Rumors that this would
be the defense have been current for
SOM time, Mr.. Magevney refuses to
state what his defense will be, until the
state has closed its case.
Judge J. Ed Richards, of First
criminal court, who was a deputy Grim
inal court clerk, when Raine was ar
raigned In 1914. In the same courtroom
where he now is being tried, also was
a witness. He told of Raine's entering
a plea Of guilty, which later was
changed to one OF not guilty, But the
Hon. J. w. Palmer. then Judge, decided