20832. Mercantile Bank (Memphis, TN)

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: February 9, 1914
Location: Memphis, Tennessee (35.150, -90.049)

Metadata

Model: gpt-5-mini
Short Digest: 7ea11dbe

Response Measures

None

Description

President C. Hunter (C. H.) Raine confessed massive embezzlement; directors/state ordered bank closed and a receiver (J. L. Hutton / state superintendent) was appointed. There was crowd agitation after closing, but the bank was placed in receivership and did not reopen as a continuing Mercantile Bank; depositors later received partial/full payments under receivership and directors' contributions and plans for assets transfer/merger were discussed.

Events (5)

1. February 9, 1914 Receivership

Newspaper Excerpt: G. C. Hutton, state superintendent of banking, arrived ... and was appointed receiver for the bank in accordance with a chancery bill filed by attorneys representing the bank's directors.
Source: newspapers

2. February 9, 1914 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Discovery of large shortage / embezzlement by president C. H. (C. Hunter) Raine from cotton speculation; auditors found a deficit of many hundreds of thousands to over $1,000,000 so directors/state ordered closure and filed for receivership.
Newspaper Excerpt: Directors of the Mercantile bank ... declared the bank insolvent and ordered its doors remain closed tomorrow. ... petition asking a receiver
Source: newspapers

3. February 10, 1914 Other

Newspaper Excerpt: Feeling ran high when the bank closed its doors and a mob of angry depositors stormed the doors, but the police drove them away.
Source: newspapers

4. March 26, 1914 Other

Newspaper Excerpt: A merger ... to take over the assets of the former Mercantile bank ... J. L. Hutton, state superintendent of banks and receiver for the Mercantile bank ... negotiations ... to take over the assets of the former Mercantile bank
Source: newspapers

5. May 23, 1914 Other

Newspaper Excerpt: the depositors of the failed Memphis Mercantile Bank have already had their losses settled by the bank directors - those with deposits less than $1,000 paid in full and the rest 75 per cent.
Source: newspapers

Newspaper Articles (21)

1. February 9, 1914 Atlanta Georgian Atlanta, GA

Article from Atlanta Georgian, February 9, 1914

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RAINE, OF MEMPHIS, ADMITS DEFAULT President Confesses Speculations-Pays Back $400,000. Luke Wright for Receiver. MEMPHIS, Feb. 9.-With an admitted shortage of approximatey $600,000, which C. Hunter Raine, the president, says he lost on cotton speculations, the Mercantile Bank of Memphis, one of the largest financial institutions in Tennessee, closed its doors this morning following a meeting of the directors Sunday afternoon, when Raine confessed having wrecked it through his plunging on the wrong side of the cotton market. The directors will ask that General Luke E. Wright, former Secretary of War and ex-Governor General of the Philippines, be appointed receiver. Raine, the defaulting president, has for twenty years been one of the leading business men of Memphis and has stood high socially, belonging to the exclusive clubs and trade organizations. He has been leading the fight for Memphis bankers to secure a regional reserve bank for this city. He has turned over $400,000-all of his personal property-to the directors to secure part of the bank's loss. The men behind the Mercantile Bank are largely interested in the Memphis Street Railway, Memphis Gas Company and Memphis Commercial-Appeal, three of the strongest corporations in Tennessee. None of those concerns is expected to be materially affected by the bank's failure, as they are considered strong enough to withstand the losses they may suffer. Hunter Raine is a brother of Gilbert D. Raine, owner and publisher of The Memphis News-Scimitar, but they have not been associated in business enterprises for many years.

2. February 9, 1914 Albuquerque Morning Journal Albuquerque, NM

Article from Albuquerque Morning Journal, February 9, 1914

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DOORS OF MEMPHIS BANK ORDERED CLOSED (BY MORNING JOURNAL SPECIAL LEASED WIRE) Memphis, Tenn., Feb. 8.-Directors of the Mercantile bank, considered one of the strongest here, tonight declared the bank insolvent and ordered its docrs remain closed tomorrow. Resolutions adopted by the directors declared this action necessary "in view of the default of the president, C. H. Raine, this day discovered." Attorneys were authorized to file a petition tomorrow for the conservition of assets. It was said Mr. Raine has turned over to the bank his personal estate valued at nearly a half million dollars. The Mercantile bank is capitalized at $200,000 and its last published statement showed assets of about two and one-half million dollars. Although officials of the bank de. cline to say what was the amount of the alleged shortage, bankers close to the directors estimated that the amount would run between $340,000 and $500,000. In a petition asking a receiver, prepared late tonight, liabilities are stated to be approximately $2,196,654 and assets about $1,408,089. a difference of approximately $788,504.

3. February 10, 1914 The Salt Lake Tribune Salt Lake City, UT

Article from The Salt Lake Tribune, February 10, 1914

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BANK IS WRECKED; PRESIDENT IN JAIL Mercantile, One of the Largest Financial Institutions in Memphis, Is Closed. MEMPHIS, Tenn., Feb. 9.-C. H. Raine, president of the Mercantile bank, one of the leading financial institutions of the city, was charged with embezzlement in a warrant sworn out today by Z. M. Estes, county attorney. The accounts of the bank, which is a state institution, are alleged to be short between $700,000 and $1,000,000. G. C. Hutton, state superintendent of banking, arrived here today from Nashville, and was appointed receiver for the bank in accordance with a chancery bill filed by attorneys representing the bank's directors. Investigation of the condition of the bank's resources was started immediately. There was little excitement evident in financial circles. J. Ottinger, president of the Memphis Clearing House as sociation, issued a 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 before Criminal Judge Palmer, where he pleaded guilty. Despite his protest that he did not want any bond fixed. Judge Palmer placed the amount at $250,000, but Raine declared he would make no effort to get the security, and accompanied a deputy sheriff to the county jail. With the discovery tonight that of $527,867 listed as actual cash on hand when the bank closed its doors, $410,000 was represented by personal checks of the president C. Hunter Raine, the amount of the apparent discrepancy in the accounts of the Mercantile bank advanced to more than $1,000.000.

4. February 10, 1914 Pine Bluff Daily Graphic Pine Bluff, AR

Article from Pine Bluff Daily Graphic, February 10, 1914

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Pres. Raine, of Mercantile Bank, Looted Institution of Nearly Million Dollars IS PLACED IN JAIL. Heavy Draft Sent New York Bank Prompted Eastern Capitalist to Investigate and Unearth Shortage. Memphis, Feb. 9.-C. Hunter Raine, president of the Mercantile Bank, which did not open its doors for business this morning, and who has acknowledged that he has defaulted to the extent of nearly $1,000,000 of that institution's money, was committed to the county jail early this afternoon after being arraigned In Judge Palmer's court on a bench warrant sworn out by Attorney General Estes charging embezzlement. "I am guilt, send me to jail: I want no bond," was Raine's reply to Judge Palmer, after the court had read the charge to him. The court fixed the bond at $250,000. When seen early this evening at the county jail Raine said "I am ready to go to the penitenHary. I will make no defense." His former friends have apparently deserted him. None of his former associates have visited him at a late hour this evening. Mr. Raine was arrested shortly before noon at his palatial home on Cooper avenue by a deputy sheriff and drove to the courthouse in his automobile. When the deputy arrived at the Raine home he found the banker dressed in a night robe. As he paced the floor before the deputy he seemed to be laboring either under intense strain or some drug. Servants in the house said they believed Mr. Raine insane. They told callers that Mr. Raine had not acted naturally since his wife's death a year ago. The Mercantile Bank which Raine looted, was placed in the hands of a receiver this morning by the Chancery Court on application of the bank's directors who held a lengthy meeting Sunday night. After learning of Raine's shortage the directors decided not to open the doors at the usual hours Monday morning. Heavy speculation in the cotton market is the cause of Raine's collapse. His losses are approximately $800,000. At the directors' meeting Sunday night Raine turned over all of his personal holdings, said to agggregate $350,000, to the bank. The receiver who took charge of the bank's books early today had reached no definite accounting at a late hour tonight. General indications are, it is said, that the audit will show a shortage of about $1,000,000. The liabilities, according to the bill in chancery, filed by attorneys for the institution, total $2,196,893.67. Individual deposits reached nearly a million dollars, and the total deposits about $1,800,000. The condition of the bank was discovered Sunday morning by the viceesident of a New York bank with

5. February 10, 1914 The Sentinel=record Hot Springs, AR

Article from The Sentinel=record, February 10, 1914

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CELL, CHARGED WITH MISAP. PROPRIATING FUNDS. ENTERS A PLEA OF GUILTY When Arraigned for Preliminary Hearing, Although Friends Offered to Arrange for the Heavy Bail Required by Court. Memphis, Feb. 9.-With discovery tonight that of $527,867 listed as ac: tual cash on hand when the bank closed its doors, $410,000 was represented by the personal checks of the president, C. Hunter Raine is now in prison, charged with embezzlement of the amount of the apparent discrepancy in the accounts of the Mercantie Bank here. advanced 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 superintendent of banks, is completed. This will require several days. Count of the actual cash in the , vaults showed approximately $52,000, it is stated. Sight exchange and clearing house certificates not counted in detail tonight with the personal is checks of the president, will. it said, make up the difference between the mony found and the amount list red as cash on hand. Raines Noncommunicative. Beyond the announcement of the 1 directors that more than three-quarters of a million dollars of the funds had been misappropriated and lost in speculation, no statement as yet IS available of the affairs of the Mercantile Bank of this city, which was C. |closed today and its president, Hunter Raine, imprisoned, charged with having wrecked the institution. of J. L. Hutton, state superintendent banks, stated tonight that his audit pf the books had not been completed and until this had been done an dis- accurate estimate of the alleged crepancy was not possible. Raine, in his cell at the county prison, maintains gilence. When arraigned today on a warrant charging embezzlement he entered a formal plea of guilty and elected to go to jail, declining the proffer of friends that they endeavor to arrange bail, fixed at $250, 000. He was arrested at his home, of the most palatial in before noon and one shortly within Memphts, cell an at hour had been assigned to a ,the county jail. Representatives of other banks dehere issued statements tonight claring that the suspension of the Mercantile Bank was without effect pn their institutions. Only normal amounts were asked by depositors and a number of new accounts were opened by former depositors of the Mercantile Bank. A squad of police were stationed at the I doors of the closed bank throughout the day. Traffic for a time was blocked by the crowds that congre- disgated about the building, but no prder was attempted. Raine, a man beyond middle age, but maintained his composure today, tonight he began to show the effects he of the ordeal. Until a late hour paced his cell and spoke only in monosyllables to his attendants. Efforts are being made by several of the directors to make up a those fund to repay the smaller depositors, having savings accounts, at least, on a ;portion of the amounts they had addeposit. in advance of the final justment of the bank's affairs. Opinions differ as to whether the acdirectors can be held personality under by the depositors, terms of the banking act the countable effect of Janu- Ten,nessee, which went into which ary 1. One interpretation the ,seems to represent the opinion of majority of those who have studied of the question is that that provision banks the act does not apply to those act which were chartered before the became operative. o

6. February 10, 1914 Atlanta Georgian Atlanta, GA

Article from Atlanta Georgian, February 10, 1914

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$1.500,000 SHORTAGE TOTAL AT MEMPHIS Beats August Ropke's Defalcation at Louisville by $100,000. Widow Loses $58,000. MEMPHIS. Feb. 10.-A new record in embezzlement will be recorded againsti C. Hunter Raine, president of the defunct Mercantile Bank of Memphis, whose shortage, it was estimated to-day, will reach $1,500,000 or more. The largest previous,individual defalcation was that of August Ropke, of Louisville, who is serving ten years in the penitentiary at Frankfor* Ky.,for having taken $1,400,000 from a Louisville trust company in/ 1909. Auditors going over the books of the Mercantile Bank to-day uncovered another shortage in addition to the $1,100,000, which Raine, in his cell at the county jail, has admitted he lost in cotton speculation. The auditors said that the records of the bank would show the largest embezzlement ever known in Tennessee and likely the largest ever known in the United States. Efforts are known to be made by the directors of the defunct Mercantile Bank to replace the money taken by Raine, but to-day it was said that only $300,000 had been pledged by the directors, who, under the Tennessee banking laws, are responsible for all of the depositors' money. Among the heavy losers in the fallure of the bank is Mrs. Eldridge Wright, whose husband was killed three years ago at Kinmundy, Ill., when an engine crashed into a private car and killed J. T. Harahan, former president of the Illinois Central Railroad, and the party of men who were his guests. Mrs. Wright is said to have had $58,000 in the bank. Grand Jury Starts Probe. With Raine a primoner in the Shelby County Grand Jury to-day was investigating the condition of the bank's accounts, with a view to returning indictments against Raine, charging embezzlement and fraudulent breach of trust. Other indictments were said to be considered today by the Grand Jurors against the other officers and directors of the bank. The officials of the bank, all of them prominent in financial and social circles of the South, include Vice President J. M. Fowlkes, Second Vice President Luke E. Wright, Cashier Claude Anderson, Directors C. Hunter Raine, Luke E. Wright, R. A. Speed, J. W. Schorr, E. B. Lemaster, A. S. Caldwell, T. J. Turley, H. H. Reese. F. G. Jones, E. W. Porter, S.T. Carnes, W. G. Reed, W. T. Overton, J. M. Fowlkes, F. G. Barton, S. Lundee and C. D. Smith. No Others Affected. No other banks or business houses were closed to-day on account of the failure of the Mercantile Bank, and announcements were made to the effect that the defalcations of Raine would not affect any other institution in Memphis or other cities. Attorney General Z. N. Estes, of Shelby County, is directing the work of the Grand Jury and compiling the figures on Raine's admitted shortage. He agreed to allow the receivers for the bank to take charge of the cash in the bank's vaults, about $52,000.

7. February 10, 1914 Atlanta Georgian Atlanta, GA

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$1.500,000 SHORTAGE TOTAL AT MEMPHIS Beats August Ropke's Defalcation at Louisville by $100,000. Widow Loses $58,000. MEMPHIS, Feb. 10.-A new record in embezzlement will be recorded against C. Hunter Raine, president of the defunct Mercantile Bank of Memphis, whose shortage, it was estimated to-day, will reach $1,500,000 or more. The largest previous individual defalcation was that of August Ropke, of Louisville, who is serving ten years in the penitentiary at Frankfor* Ky., for having taken $1,400,000 from a Louisville trust company in 1909. Auditors going over the books of the Mercantile Bank to-day uncovered another shortage in addition to the $1,100,000, which Raine, in his cell at the county jail, has admitted he lost in cotton speculation. The auditors said that the records of the bank would show the largest embezzlement ever known in Tennessee and likely the largest ever known in the United States. Efforts are known to be made by the directors of the defunct Mercantile Bank to replace the money taken by Raine, but to-day it was said that only $300,000 had been pledged by the directors, who, under the Tennessee banking laws, are responsible for all of the depositors' money. Among the heavy losers in the failure of the bank is Mrs. Eldridge Wright, whose husband was killed three years ago at Kinmundy, III., when an engine crashed into a private car and killed J. T. Harahan, former president of the Illinois Central Railroad, and the party of men who were his guests. Mrs. Wright is said to have had $58,000 in the bank. Grand Jury Starts Probe. With Raine a prisoner in the Shelby County Grand Jury to-day was investigating the condition of the bank's accounts, with a view to returning indictments against Raine, charging embezzlement and fraudulent breach of trust. Other indictments were said to be considered today by the Grand Jurors against the other officers and directors of the bank. The officials of the bank, all of them prominent in financial and social circles of the South, include Vice President J. M. Fowlkes, Second Vice President Luke E. Wright, Cashier Claude Anderson. Directors C. Hunter Raine. Luke E. Wright, R. A. Speed, J. W. Schorr, E. B. Lemaster, A. S. Caldwell, T. J. Turley, H. H. Reese, F. G. Jones, E. W. Porter, S. T. Carnes, W. G. Reed, W. T. Overton, J. M. Fowlkes, F. G. Barton, S. Lundee and C. D. Smith. No Others Affected. No other banks or business houses were closed to-day on account of the failure of the Mercantile Bank, and announcements were made to the effect that the defalcations of Raine would not affect any other institution in Memphis or other cities. Attorney General Z. N, Estes, of Shelby County, is directing the work of the Grand Jury and compiling the figures on Raine's admitted shortage. He agreed to allow the receivers for the bank to take charge of the cash in the bank's vaults, about $52,000. will ea

8. February 10, 1914 Valdez Daily Prospector Valdez, AK

Article from Valdez Daily Prospector, February 10, 1914

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STOLE MILLION FROM THE BANK President Raine Had Lots of Opportunity, So He Worked at the Job and Made Big Haul. MEMPHIS, Tenn., Feb. 10.-The Mercantile Bank of this city closed its doors today and the court appointed a receiver in order that whatever assets remained might be conserved in the interest of the depositors and the owners of stock in the institution. President Raine is under arrest charged with having looted the bank out of more than a million dollars. The president has confessed to the crime and says that he lost it all speculating on the stock exchange. Feeling ran high when the bank closed its doors and a mob of angry depositors stormed the doors, but the police drove them away. Raine stated today that he would plead guilty and take his medicine and hoped the trial could be expedited so as to have his troubles quickly over. He says he has no part of the funds left.

9. February 10, 1914 Daily Kennebec Journal Augusta, ME

Article from Daily Kennebec Journal, February 10, 1914

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Apparent Discrepancy at Memphis Now Over Million. The accounts of the bank which is Memphis, Feb. 9.-With the discova state institution, are alleged to be ery tonight that of $527,867 listed acshort between $700,000 and $1,000,000. tual cash on hand when the bank closState banking officials ordered the ined its doors, $410,000 was represented stitution closed after the reputed by the personal checks of the presishortage became known yesterday. dent, C. Hunter Raine, now imprisoned charged with embezzlement, the G. C. Hutton, state superintendent amount of the apparent discrepancy in of banking, was appointed receiver for the accounts of the mercantile bank the bank in accordance with a chanhere advanced to more than a million cery bill filed by attorneys representdollars. ing the bank's directors. Investigation The exact amount will not be known of the condition of the bank was startuntil the audit being made under- the ed immediately. direction of J. L. Hutton, state suJ. C. Ottinger, president of the Memperintendent of banks, is completed. phis Clearing House Association, isSight exchange and clearing house sued a statement declaring none of certificates not counted in detail to= the members of the association was night, with the personal checks of the affected by the failure of the Mercanpresident, it sibelieved, will make up tile Bank. the difference betwen the money found The warrant was served on Mr. and the amount listed as cash on Raine at his home. He was taken behand. fore Criminal Judge Palmer, where he pleaded guilty. Despite his protest Memphis, Tenn., Feb. 9.-C. H. that he did not want any bond fixed, Raine, president of the Mercantile Judge Palmer placed the amount at Bank, one of the leading financial in$250,000, but Mr. Raine declared he stitutions of the city, was charged would make no effort to get the sewith embezzlement in a warrant curity and accompanied a deputy shersworn out today by Z. N. Estes, couniff to the county jail. ty attorney general.

10. February 11, 1914 Atlanta Georgian Atlanta, GA

Article from Atlanta Georgian, February 11, 1914

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$1.500,000 SHORTAGE TOTAL AT MEMPHIS Beats August Ropke's Defalcation at Louisville by $100,000. Widow Loses $58,000. MEMPHIS, Feb. 10.-A new record in embezzlement will be recorded againsti C. Hunter Raine, president of the defunct Mercantile Bank of Memphis whose shortage, it was estimated to-day, will reach $1,500,000 or more. The largest previous individual defalcation was that of August Ropke, of Louisville. who is serving ten years in the penitentiary at Frankfor Ky., for having taken $1,400,000 from a Louisville trust company in 1909. Auditors going over the books of the Mercantile Bank to-day uncovered another shortage in addition to the $1,100,000, which Rains, in his cell at the county jail, has admitted he lost in cotton speculation. The auditors said that the records of the bank would show the largest embezzlement ever known in Tennessee and Hkely the largest ever known in the United States. Efforts are known to be made by the directors of the defunct Mercantile Bank to replace the money taken by Raine, but to-day it was said that only $800,000 had been pledged by the directors, who, under the Tennessee banking laws, are responsible for all of the depositors money. Among the heavy losers in the fallure of the bank is Mrs. Eldridge Wright, whose husband was killed three years ago at Kinmundy, III., when an engine crashed into a private car and killed J. T. Harahan. former president of the Mlinois Central Railroad, and the party of men who were his guests Mrs. Wright is said to have had $58,000 in the bank Grand Jury Starts Probe. With Raine a prisoner in the Shelby County Grand Jury to-day was investigating the condition of the bank's accounts, with a view to returning indictments against Raine, charging embezzlement and fraudulent breach of trust. Other indictments were said to be considered today by the Grand Jurors against the other officers and directors of the bank. The officials of the bank, all of them prominent in financial and soclal circles of the South, include Vice President J. M. Fowlkes, Second Vice President Luke E. Wright, Cashier Claude Anderson, Directors C. Hunte: Raine, Luke Ex Wright, R. A. Speed. J. W. Schorr, E. B. Lemaster, A. S Caldwell, T. J. Turley, H. H. Reese F.G. Jones, E. W. Porter, S. T. Carnes, W. G. Reed, W. T. Overton, J. M. Fowlkes, F. G. Barton, S. Lundee and C. D. Smith. No Others Affected. No other banks or business houses were closed to-day on account of the failure of the Mercantile Bank, and announcements were made to the effect that the defalcations of Raine would not affect any other institution in Memphis or other cities. Attorney General Z. N. Estes. of Shelby County, is directing the work of the Grand Jury and compiling the figures on Raine's admitted shortage. He agreed to allow the receivers for the bank to take charge of the cash in the bank's vaults, about $52,000. --

11. February 11, 1914 The Colorado Statesman Denver, CO

Article from The Colorado Statesman, February 11, 1914

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BANK SHORTAGE PASSES MILLION MEMPHIS MAN ADMITS HE IS GUILTY OF EMBEZZLEMENT AND REFUSES HELP. PRESIDENT GOES TO JAIL SAYS WHEN WALL STREET STACKS CARD AGAINST YOU, THE END COMES. Western Newspaper Union News Service. Memphis, Tenn.-With the discovery that of $527,867 listed as actual cash on hand when the bank closed its doors, $410,000 was represented by personal checks of the president, C. Hunter Raine, now imprisoned, charged with embezzlement, the amount of the apparent discrepancy in the accounts of the Mercantile Bank advanced to more than $1,000,000. The exact amount will not be known until the audit being made under the direction of J. L. Hutton, state superintendent of banks, is completed, which will require several days. Raine maintains silence. When arraigned on a warrant charging embezzlement, he entered a formal plea of guilty and elected to go to jail, declining the proffer of friends to arrange $250,000 bail. Representatives of other banks here issued statements declaring that the suspension of the Mercantile Bank was without effect on their institutions. According to a statement made up Saturday, the Mercantile Bank held deposits of $1,381,525, of which approximately $340,000 was in savings accounts. In addition, $160,000 in certificates of deposit were outstanding. About 2,000 commercial and 4,000 saving accounts were carried. Raine had no comment to make on the bank's affairs other than to admit his guilt and absolve his fellowofficers of implication. "My life is spent," he told a friend. "When Wall street stacks the cards against you the end is there."

12. February 12, 1914 The Manchester Journal Manchester, Bennington, VT

Article from The Manchester Journal, February 12, 1914

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BANK 13 $800.000 SHORT Doors Closed and President of Institu. tion Placed Under Arrest Memphis, Feb. 10.-Alleging that almost $800,000 has been lost through speculation of C. H. Raine, president of the Mercantile bank, ten directors of that institution ordered that the bank doors remain closed. The bank was considered one of the strongest here. In a petition for a receiver filed in chancery court here, the directors allege that, with liabilities of approximately $2,193,894, but $1,408,089 can be found. They charge that Raine secured the money "by a system of handling drafts, property and exchange in such a manner as to deceive the directors and conceal his manipulations." Raine was arrested, charged with embezzlement.

13. February 12, 1914 The Raymer Enterprise Raymer, New Raymer, CO

Article from The Raymer Enterprise, February 12, 1914

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MEMPHIS MAN ADMITS HE IS GUILTY OF EMBEZZLEMENT AND REFUSES HELP. PRESIDENT GOES TO JAIL SAYS WHEN WALL STREET STACKS CARD AGAINST YOU, THE END COMES. , Western Newspaper Union News Service. Memphis, Tenn.-With the discovery that of $527,867 listed as actual cash on hand when the bank closed its doors; $410,000 was represented by personal checks of the president, C. Hunter Raine, now imprisoned, charged with embezzlement, the amount of the apparent discrepancy in the accounts of the Mercantile Bank advanced to more than $1, 000,000. The exact amount will not be known until the audit being made under the direction of J. L. Hutton, state superintendent of banks, is completed, which will require several days. Raine maintains silence. When arraigned on a warrant charging embezzlement, he entered a formal plea of guilty and elected to go to jail, declining the proffer of friends to arrange $250,000 bail. Representatives of other banks here issued statements declaring that the suspension of the Mercantile Bank was without effect on their institutions. According to a statement made up Saturday, the Mercantile Bank held deposits of $1,381,525, of which approximately $340,000 was in savings accounts. In addition, $160,000 in certificates of deposit were outstanding. About 2,000 commercial and 4,000 saving accounts were carried. Raine had no comment to make on 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. "When Wall street stacks the cards against you the end is there."

14. February 12, 1914 The Oskaloosa Herald Oskaloosa, IA

Article from The Oskaloosa Herald, February 12, 1914

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EFAULTING BANK HEAD IS JAILED President of Wrecked Memphis Bank Admits Guilt. WILLING TO TAKE PENALTY Cotton Speculation Is Cause of Defaication-Declared Shortage Will Reach $1,000,000- Liabilities Placed at Over Two Million. Memphis, Tenn., Feb. 10.-Acting under supervision of J. L. Hutton, state superintendent of banks and receiver for the Mercantile bank, officers of the institution, which closed its doors yesterday morning, are examining the books in an effort to determine the exact amount of shortage, for which C. Hunter Raine, president of the bank, asserts he alone is responsible. A report in circulation late Monday was that a director of the Mercantile bank, one of the heavy losers in the failure, had announced that he was willing to stand his share of the loss necessary to pay savings department depositors. It is understood that If other directors agree it will cost this director $40,000. His loss in the failure is said to amount to $60,000. Up until a late hour, Receiver Hutton had reached no definite acounting. General indications are, it is said, that the audit will show a deficit in the eighborhood of $1,000,000. Raine Is Arrested. Mr. Raine has made no effort to give bail, according to attaches of the criminal court. He was arrested shortly before noon on a bench warrant charging embezzlement of $788,804.76 of the bank's funds, and was taken to the county jail. The bank president was escorted before Judge Palmer by Sheriff Tate and Deputy Sheriff M. W. Palmer. Taking the warrant under which the banker was arrested and which was sworn out by Attorney General Estes, the court read the document to Mr. Raine and asked him if he had anything to say. "I am guilty," replied the banker. "Mr. Attorney General," continued the court, "what bond do you recommend?" Before the attorney general could reply the banker interrupted with: "I don't want to give bond; I want to go to jail." He was taken to the jail by Deputy Sheriff Palmer. When he was searched at the jail, preparatory to being committed to a cell, he informed the jailer that "You needn't be afraid. I'm not going to make any trouble." Bond Fixed at $250,000. Judge Palmer fixed the banker's bond at $250,000. It is understood, however, that Mr. Raine will make no effort to furnish bail. His attitude is taken by the county authorities as indicating his willingness to take with out resistance any punishment that might be meted out by the criminal court. Criminal proceedings against the banker came as the culmination of the bank's failure. An application for the appointment of J. L. Hutton. state superintendent of banks, as receiver for the Mercantile bark, was granted by Chancellor Fentress. Mr. Hutton arrived in Nashville early in the day, and immediately upon the chancery court's decree naming him receiver, took charge of the bank's affairs. The bank was officially closed fol lowing an order by the board of directors, who subsequently filed a bill in chancery, charging C. Hunter Raine, president of the institution, with having lost, through cotton speculations, $788,804.76 of the bank's funds. Owing to the bank's extensive operations, a complete report of the receiver's audit is not expected for several days. A detailed statement of the institution's financial condition could

15. February 12, 1914 The Tabor Independent Tabor, SD

Article from The Tabor Independent, February 12, 1914

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HEAD OF MEMPHIS BANK IS ACCUSED OF HUGE SWINDLE Memphis, Tenn., Feb. 10.-C. H. Rains, president of the Mercantile bank, one of the leading financial institutions of the city, was charged with embezzlement in a warrant sworn out today by z. N. Estes, county attorney. The accounts of the bank, which is a state institution, are alleged to be short between $700,000 and $1,000,000. Memphis, Tenn., Feb. 10.-Ten directors of the Mercantile bank, one of the most important financial institutions in the city, today filed a petition in chancery court, charging that the bank was insolvent as the result of the alleged misappropriation of more than $750,000 by C. Hunter Raine, president of the institution. In the petition Raine was held solely responsible for the apparent shortage, approximately $788,804, which, it is charged, he obtained "by a system of handling the bank's drafts, property and exchange in such a way as to deceive the directors and to conceal his manipulations," the total amount of which it was alleged, he lost in speculation. The petition places the liabilities of the bank at approximately $2,196,594 with assets of $1,408,089. In a published statement January 9, liabilities were given as $2,436,197. At that time the total deposits were $1,861,109, of which $344,233, were savings accounts. The bank is capitalized at $200,000 and has a surplus of $100,000. Resources, loans and discounts at the time of the statement, amounted to $1,130,496; actual cash on hand was $424,784; sums due from other banks amounted to $489,165; cash items in transit amounted to $137,778. These amounts with other items balanced the amount given as liablities. The alleged discrepancy was discovered by a representative of a New York correspondent of the bank who was sent to Memphis last week to audit the 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 yesterday, which brought the situation to a climax, was the first intimation that the bank was not in a prosperous condition 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 yesterday's meeting absolved all of the officers and directors of the bank of implication in alleged shortages and tendered his personal estate, which he valued at $350,000 to the bank. So far he has made no formal statement. G. C. Hutton, state superintendent of banking, arrived here today from Nashville and was appointed receiver for the bank, in accordance with a chancery bill filed by attorneys representing the bank's directors. Investigation of the condition of the bank's resources was started immediately. There was little excitement evident in financial circles. J. C. Ottinger, president of the Memphis Clearing House association, issued a 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 before Criminal Judge Palmer, where he pleaded guilty. Despite his protest that he did not want any bond fixed, Judge Palmer placed the amount at $250,000, but Mr. Raine declared he would make no effort to get the security and accompanied a deputy sheriff to the county jail.

16. February 16, 1914 Rock Island Argus Rock Island, IL

Article from Rock Island Argus, February 16, 1914

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Memphis, Tenn., Feb. 16.-Feeling against President C. Hunter Raine, of the wrecked Mercantile bank of this city, is running very high among the 4,000 depositors, many of whom lost the savings of a life time in the crash. The fact that Raine has not sought to secure his liberty on bail gives color to the rumor that he is in fear of crazed depositors who have threatened to take his life. Raine seems to regret that he should have robbed so many people. "I robbed the people who trusted me," he said in jail here. "I took their money and lost. I am ready to go to prison for a life time if I can save one single man, woman or child from any suffering." Raine's thefts total more than a million. He used the money in cotton speculation. Losses by reason of the failure are widespread. A washerwoman had $400, all her life savings in the bank. She said that Raine himself, just before the crash, told her the bank would be all right at present, even if it was in a hole with a rock on top of it. A woman, prominent in society life here, is reported to have lost $52,000. A city detective who had $1,200 in the bank on deposit said that he passed one of the bank officials a few hours before the crash and that the man did not speak to him. He said that because of this he started for the bank to withdraw all of his money, but at the door was delayed by a friend. He lost everything. A liquor dealer is reported to be another heavy loser, having had $20,000 or more on deposit there. Bankers generally predict that the depositors will not realize 25 cents on the dollar.

17. February 26, 1914 Atlanta Georgian Atlanta, GA

Article from Atlanta Georgian, February 26, 1914

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Raine's Heirlooms Are Sold at Auction MEMPHIS Feb. 25.-All the household goods of C. Hunter Raine, the defaulting president of the Mercantile Bank of Memphis, including many valuable pieces of furniture and briea-brac, were sold at public auction to-day. The furnishings were valued at $200,000. The proceeds will be turned over to J. L. Hutton, receiver for the bank which Raine confessed he looted for nearly $1,500,000.

18. March 6, 1914 Bonners Ferry Herald Bonners Ferry, ID

Article from Bonners Ferry Herald, March 6, 1914

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Defunct Tennessee Bank Pays. Memphis, Tenn.-Payment in full to depositors whose individual accounts are less than $1000, and 75 per cent payments to depositors of larger sums is proposed in a plan agreed on by directors of the suspended Mercantile bank. Audit of the bank's books showed a shortage of approximately $1,000,000, which it is alleged C. Hunter Raine, president of the institution, lost in cotton speculations. Raine is in jail.

19. March 28, 1914 Pine Bluff Daily Graphic Pine Bluff, AR

Article from Pine Bluff Daily Graphic, March 28, 1914

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BANK MERGER PLAN BEING CONSIDERED I Misssippi Valley and City National May Join Plan. I CAPITAL OF $800,000.00 ! Mercantile-City National May Be Organized Soon and Compromise Is Assured Without Delay. I Memphis, March 26.-A merger of two strong Memphis banks with the proposed new bank which is in process of organization to take over the assets of the former Mercantile bank may grow out of negotiations which have been undertaken by J. L. Hutton, state superintendent of banks and receiver for the Mercantile bank. The two banks to which propositions have been submitted are the Mississsippi Valley Bank & Trust Company and the City National Bank. If the proposed merger is carried out the new bank which will succeed them will have a capital stock paid in of $800,000, a surplus of nearly $100,000 and combined resources of possibly $3,000,000. It is said that if the plans now under consideration are carried through that J. L. Hutton will be elected president of the new bank. J. C. Ottinger, now president of the Mississippi Valley Bank & Trust Company, will become the vice president of the new organization, and W. H. Kyle, cashier

20. May 23, 1914 The Semi-Weekly Leader Brookhaven, MS

Article from The Semi-Weekly Leader, May 23, 1914

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NOVEL AND INTERESTING CHAPTER IN BANKING. The announcement that the depositors of the failed Memphis Mercantile Bank have already had their losses settled by the bank directors-those with deposits less than $1,000 paid in full and the rest 75 per cent-tells a new and interesting story in American banking. Not that we know of bas there ever been such a ready and full response by directors to the call of duty. The following appreciative comment is reproduced from the Commercial Appeal: Within three months, almost to the day, the losses caused by the failure of the Mercantile Bank through the defalcation of its president, have been as far as possible, repaired. The depositors under $1,000 have been made whole, and the larger depositors have to their credit 75 per cent of their claims. The methods by which these good results have been brought about are unparalleled in the history of American banking. Voluntarily the directors, without thought of the question of liability, put up $300,000. Most of them were heavy losers. In spite of their losses, they undertook this additional burden. Actions such as this strengthen the faith men have in their fellow beings and show to what splendid heights men may rise by the exercise of the manly qualities that moved these directors. The receivership of the old bank, under J. L Hutton, was splendidly handled. Court costs and law fees were kept at a minimum and the general expenses were almost negligible. The Mercantile Bank having been looted once, it was determined that it should not be looted again during the receivership under forms of the law. This is all well said. Only we choose to believe that the action of the directors was prompted, in the main, by a true sense of their "liabilities"-moral and legal. It argues best for the banking business to take this view. For with it thoroughly established as a principle of banking, that directors ARE liable to depositors, there will be a Lew rule of conduct of directors meetings, and of scrutiny of banking statements and affairs. And where directors take their duties and liabilities thus seriously, there will be an end of bank fail. ures.-Vicksburg Herald.

21. June 26, 1914 The Columbia Herald Columbia, TN

Article from The Columbia Herald, June 26, 1914

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MR. HUTTON IN MEMPHIS. The effort to question the good motives or the sincerity of Jo L. Hutton, former receiver of the old Mercantile Bank, is outrageously unjust, in view of what Mr. Hutton did for the depositors in that bank and his remarkably able work in the conduct of the receivership. The splendid returns made to the depositors in the Mercantile Bank, whose money had been stolen, is due probably more to the efforts of Mr. Hutton than any other man. His career in Memphis is such that to attack him in any way cannot hurt him, but rather is a reflecion upon the intelligence and proof of the insincerity of those making it. An attempt to detract attention from the guilty by seeking to besmirch the innocent is a trick which usually exposes itself. -Memphis Commercial Appeal.