The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-07-15

I NAN"NAH AAE FHAA
Il was during this period Of idleness
that he started treading the trail that
led to the doors Of the federal prison.
was IN no business at that time.
and ! amused myself by dealing In cot
ton Raine said.
office IN those days, he said. Albert
caldwell, he said, hunted him out and
said, Hunter, we want you to come
back to the bank. ] am a failure as a
bank president. I have lost half the
deposits, Raine said Caldwell told him.
He explained that he stil had some
large depositors who were keeping UP
the showing, Raine said.
Il told Mr.. Caldwell, Albert, ! have
graduated in banking Raine said.
Resumes Presidency.
Caldwell came after him again, RaIne
said, and finally Smithwick quit to ac-
cept the Vtce-presidency Of the First
National bank, 80 Raine went back to
the Mercantile as president, after Cald-
OF the bank in his office. Raine re-
membered that Mr.. Turley and ]. f.
Hoist were present. He thought most
OF the directors who still held their jobs
at the time Of the crash were present.
Given the chance to name his own
salary, Raine said he elected TO 60
back at the same salary he had drawn
when he resigned before, IS, 500. He was
given the right to name his own cashier,
too, he said.
Il very foolishly accepted" he said.
II didn't care about the salary. /
didn't need it." Raine added.
That was In March, 1907. Raine said
he was worth pretty close to a mil
lion dollars them
You have heard the statements of
Mr.. Wilkes and Lieut.. Anderson with
reference TO certain transfers by which
ii is, said that you obtained an amount
Of money totaling Lose, 900 of the Mer-
camille banks money" MageVney said.
State to the jury whether or not when
you obtained the money you intended to
inJure or defraud the bank"
II did not was the answer.
What evidence of your Indebtedness
was in the hands of the bank?"
II always gave my check and always
felt that the bank was Unidentified by
my receipt and collateral in the bank"
Raine answered.
Claims Big Assets.
Asked how much money he was worth
at the time the bank failed, Raine an
swered:
1--WE been in hell for the past five
years and a great many Of those things
have escaped me-" He referred to his
Incarceration in the Atlanta penitenti-
airy. But | made up a list from mem
DRY a while ago n | can read off
S944,0 900 worth of securities that owned
then" he said.
The list, as Raine read 1t, included:
Equity in home $3.50, 900; lot, Main
Land & improvement CO, stock 500.
900; Winona Oil Mills SIS, 900; CONNER
cial Publishing Co. 5000 Merchants
Cotton Press & Storage Co. s85, 900
Lot, Belvedere boulevard, $500; Equity
life insurance $40, 900; Mercantile bank
stock $25, 900; Tennessee club bonds
1874, OO0; Sisters Good Shepherd bonds
s 1900; Miscellaneous bonds 50, 900;
Jackson, Tenn, bonds SIC, 900; Sundry
notes $40, 900; cemetery lot SIS, 200; Met
ropolitan Insurance gold bonds $4,000;
Equity cotton holdings $500, 900.
ltaine totaled mis- at SY44,O00, lie
was sure he owned other securities, to
more than 81, 056, 900 at the time of the
failure. He, could not remember the
others
Bank Got His Property.
The bank got all of his securities, lie
said, at he time of the failure. He
decided his realty to them. He assigned
the securities.
Raine told of conversations with Mr..
Haig, ice-presldent of the American
Exchange National bank of New York.
He convinced Haig that he should be
let alone and that he would come out
all right. But when Haig wired to
DOllllNNNi opAlioi WV OoibNllti DNlliiNlN
came on to Memphis, 1t was here that
Raine made the charge that Bennett |
Conspired to get hold of MS cotton spec
u~lations and turn them to his W
advantage.
Passing then to his arrest and mis-
personal statement before Judge James
w, Palmer that he was guilty, Raine
said:
What l meant by guilty was hat I
had borrowed the money from the
bank"
How long did you remain in jail?"
Until the latter part Of April"
Did you make bond?"
Yes, sir" |
Where did you go them"
New York"
Plea of Guilty.
When did you next return to Mem
FEB. s, 1915"
For what %purpose?'
ITO be tried in the United States
court"
Were you tried there?"
II pleaded guilty there"
what was the charger"
Using the mails to defraud, | didn't
feel that | was guilty; felt that was
technically guilty Mr.. Raine here said
that Mr.. Bennett, of New York, was
responsible for the failure of the bank
Did 0 consult your attorney be-
fore entering a plea OF guilty."
They advised me to plead guilty;
court was different from the state
courts and that II | pleaded guilty in
the United States court | would go
free in the state court. They told me
| would only get five years"
Where did you go after that?"
ITO the Atlanta prison."
He said he served three years, eight
months and six days and was released
On oct. II, 1918. He then went to New
York; went there to make money TO
pay back what he had borrowed from
the Mercantile bank. But | could not
do anything because I was always in
terror Ct these indictments" he de-
clared,
Big Sums to Foster.
Mr.. Raine's attorney then handed him
a number of checks drawn by him on
the bank, ranging in amounts from $25,-
600 to $50, 900. He admitted he drew
the checks, but said they were depos-
tied to the credit Of Madison Foster,
Raine did not know whether Foster
cashed them or not; said he might have
bought New York exchange with them
ON direct examination MIR, Raine said
that his assets In February, 1914, were,
In his Judgment, more than $500, 600.
Asked what he realized on his assets
after they were turned over to the re-
CelNeTS OF tne DaUk, ne TepIcu lnat ne
had never received a report. Henry
Craft, attorney. he said. came to At
lanta while he was in prison to take his
deposition In behalf Of Hubbard Broth
ers, but he refused to give same. He
denied emphatically that he withheld
any of his securities or assets from
the bank receivers.
Asked II II. II, Reese was a director
In the bank. Mr.. Raine said that he vas
n director from 1907 until 1918, Just
prior to the time the institution closed
its doors.
Long $1,000 Bales.
MIR, Raine said at that time he
(Raine) was carrying $1,000 bales OF
long cotton. meaning he was betting
cotton would lgo up.
Mr., Raine said that the amount due
the American Exchange National bank
was nothing unusual for that time OF
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