The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-07-15
Directors Ignorant.
Dodged own Bookkeepers.


why did you charge yourself NOR
interest than you did. the ordinary Gus
tomer?" Mr.. Bates inquired,
ITO make me feel better" was tn
reply.
"How did that make you feel better?'
Because | wanted to feel that | wa
amply remunerating the bank for thu
use of this money
why was 1t that your large checks
were never put on the discount bool
and submitted to the directors?'
Because | didn't want the directors
to know that l was using the banks
money!.
why did you instruct the tellers tc
allow Reese's checks and checks fol
Madison Foster to go through without
in~dorsement?"
Because | didn't want the bookkeep.
ers Of the bank to know" ..
why vas it, the night you were al
the hotel with Mr.. Bennett, on thai
Saturday night, that you denied tc
Haig and Bennett that you were spec
ulating?'
For the same reason that l did not
want the directors to know that l was
specializing. ! knew Bennett was here
to get this cotton"
Directors Not Interested.
Mr., Raine denied that Gen. Wright,
Capt. Speed, Mr.. Reese and others put
up any collateral for the cotton specu-
%lations. He said he did not represent
them in amy of the transactions.
On redirect examination, Mr.. Raine
said that he never saw Bennett at the
Hotel Chisca with any statement. He
admitted that in October, 1918, Reese
suggested that he (Raine) stop trading
with him. He said at that time he
was in the market close to a million
dollars.
Witness said that the money hat was
paid on The checks he had enumerated
In direct examination, running as high
as $4,000, was placed to the credit of
Madison Foster and thereafter left the
bank on checks of Madison Foster.
The money represented by the checks
OF Madison Foster and Reese as well as
his own all came from the general funds
of the bank, he said. The reason he
didn't want the directors to know he
was using the money was because it
would cause them to lose confidence in
MIN, and that was the only Reason he
kept It from them.
Two Character Witnesses,
Ralph Wormley, cotton man, was
called on to testify as to Raine's good
He did. His cross examina-
ton was very brief.
Did you have any money in the Mer-
asked, ~
Yes sir" Mr.. Wormley answered.
Die o lose anything?" was the
next question.
mo sir, l was paid every cent" was
the reply.
That's ALL"
, r. A. Parker next was called. He
had lived rs years in Memphis, he said.
lie had known Hunter Raine for As
years. Raine's reputation prior to 1914
was as good as any mans In Memphis,
Mr., Parker said. Asked whether he
would believe Mr.. Raine on oath now,
he replied that he would that as Raine
had expiated his crime, he had more
faith in him than ever before,
Lieut.. Claude ID, Anderson, formerly
cashier Of the bank, was recalled TO
the witness stand by Hugh Magevney,
attorney for Hunter Raine, when court
Monday afternoon for the
purpose of answering one question.
I'm ask you II you know whether or
not the board OF directors of the Mer-
camille bank eve at any time author
lied the president, c, Hunter Raine, to
purchase securities, stocks and bonds
with the surplus money Of the bank y
Magevney asked.
Yes, siry just before he left the bank
in 1906, Or after he came back in 1907
he was so authorized" said the wit
ness. Two hundred thousand dollars
was the amount of money the bank then
had idle and which 1t was unable to
loan" Anderson said. He added that
Raine was authorized to purchase high
class railroad securities or other high
investment securities, but he was
to take the trade before the directors
before the deal was closed.
He was not authorized to borrow for
his own use, was he?" John EXby, as
states attorney, asked.
mo. sir"
WAS he authorized to deal In cotton
futures?" was the next question,
mo, sir"