Mercantile Bank (Memphis, TN)

Episode Information

Episode UID
26000671370
Episode Type
Suspension → Run → Closure
Bank Type
state
Bank ID
2600067 routing
Routing Number
26-0006
Start Date
February 10, 1914
Location
Memphis, Tennessee (35.150, -90.049)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
69f2aecfca92b42a

Response Measures

None

Description

Closure followed massive embezzlement by the president; depositors stormed the doors after the shutdown.

Events (3)
1. February 10, 1914 Receivership
Newspaper Excerpt
the court appointed a receiver ... J. L. Hutton, state superintendent of banks, took charge of the Mercantile bank's affairs as receiver.
Source
newspapers
2. February 10, 1914 Run
Cause
Bank Specific Adverse Info
Cause Details
Depositors agitated and attempted to force access after news of the president's embezzlement and the bank's closing.
Newspaper Excerpt
a mob of angry depositors stormed the doors, but the police drove them away.
Source
newspapers
3. February 10, 1914 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Directors closed the bank after discovery of large shortages/embezzlement by president C. Hunter Raine.
Newspaper Excerpt
ten directors of that institution ordered that the bank not open its doors for business.
Source
newspapers

Newspaper Articles (24)
1. February 10, 1914 Atlanta Georgian Atlanta, GA
Article from Atlanta Georgian, February 10, 1914

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Article Text

$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

2. February 10, 1914 The Madison Daily Leader Madison, SD
Article from The Madison Daily Leader, February 10, 1914

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Article Text

HEAD OF INSTITUTION SAID TO BE SHORT Big Memphis Bank Forced to Close Its Doors. Memphis, Tenn., Feb. 10.-Alleging that almost $800,000 has been lost through speculations of C. H. Raine, president of the Mercantile bank, ten directors of that institution ordered that the bank not open its doors for business. The bank was considered one of the strongest here. In a petition for a receiver filed in chancery court here the directors al leged that with liabilities of approximately $2,196,894 only $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 turned over his personal estate he claimed to be worth approximately $350,000.

3. February 10, 1914 The Bemidji Daily Pioneer Bemidji, MN
Article from The Bemidji Daily Pioneer, February 10, 1914

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Article Text

HEAD OF INSTITUTION SAID TO BE SHORT Big Memphis Bank Forced to Close Its Doors. Memphis, Tenn., Feb. 10.-Alleging that almost $800,000 has been lost through speculations of C. H. Raine, president of the Mercantile bank, ten directors of that institution ordered that the bank not open its doors for business. The bank was considered one of the strongest here. In a petition for a receiver filed in chancery court here the directors alleged that with liabilities of approximately $2,196,894 only $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 turned over his personal estate he claimed to be worth approximately $350,000.

4. 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.

5. February 11, 1914 Atlanta Georgian Atlanta, GA
Article from Atlanta Georgian, February 11, 1914

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Article Text

$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. --

6. February 12, 1914 The Manchester Journal Manchester, Bennington, VT
Article from The Manchester Journal, February 12, 1914

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Article Text

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.

7. February 13, 1914 McNairy County Independent Selmer, TN
Article from McNairy County Independent, February 13, 1914

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Article Text

The suspension of the Mercantile Bank at Memphis Saturday night was a great surprise to the business world. The president, Hunter Rains, simply used about $800,000 in speculating in \cotton futures. The bank was capitalized at $200,000 and had deposits of over one million. The law will claim another victim as the result of using other peoples' money for gambling purposes. The full penalty of the law should be administered. The affairs of the bank will be wound up in the court. At present no one can tell what depositors will get.

8. February 13, 1914 Cresco Plain Dealer Cresco, IA
Article from Cresco Plain Dealer, February 13, 1914

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MEMPHIS BANK IS CLOSED Head of Institution Said to Be Short $800,000. Memphis, Tenn., Feb. 10.-Alleging that almost $800,000 has been lost through speculations of C. H. Raine, president of the Mercantile bank, ten directors of that institution ordered that the bank not open its doors for business. The bank was considered one of the strongest here. In a petition for a receiver filed in chancery court here the directors alleged that with liabilities of approximately $2,196,894 only $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 turned over his personal estate he claimed to be worth approximately $350,000.

9. 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.

10. February 18, 1914 The Abbeville Press and Banner Abbeville, SC
Article from The Abbeville Press and Banner, February 18, 1914

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RAINE'S SHORTAGE $788,804 Bond Fixed at $250,000, and Man Is Sent to Cell in Jail. I Memphis, Tenn.-"I am guilty. want to go to jail." This was the reply of C. Hunter Raine, president of the Mercantile bank, which closed its doors, when he was arraigned on a bench warrant charging embezzlement, growing out of Raine's alleged defalcation of $788,804 of the bank's funds. Over his protest that he didn't want to make bond, Criminal Judge Palmer fixed the amount of the security at $250,000, but Mr. Raine went directly to a cell in the county jail. The hearing lasted only a few minutes. J. L. Hutton, state superintendent of banks, took charge of the Mercantile bank's affairs as receiver. An investigation of the present resources of the bank was immediately begun.

11. February 19, 1914 Polk County News-Gazette Benton, TN
Article from Polk County News-Gazette, February 19, 1914

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RAINE'S SHORTAGE $788,804 Bond Fixed at $250,000, and Man Is Sent to Cell in Jail. I Memphis, Tenn.-"I am guilty. want to go to jail." This was the reply of C. Hunter Raine, president of the Mercantile bank, which closed its doors, when he was arraigned on a bench warrant charging embezzlement, growing out of Raine's alleged defalcation of $788,804 of the bank's funds. Over his protest that he didn't want to make bond, Criminal Judge Palmer fixed the amount of the security at $250,000, but Mr. Raine went directly to a cell in the county jail. The hearing lasted only a few minutes. J. L. Hutton, state superintendent of banks, took charge of the Mercantile bank's affairs as receiver. An investigation of the present resources of the bank was immediately begun.

12. February 19, 1914 The Review High Point, NC
Article from The Review, February 19, 1914

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RAINE'S SHORTAGE $788,804 Bond Fixed at $250,000, and Man Is Sent to Cell in Jail. I Memphis, Tenn.-"I am guilty. want to go to jail." This was the reply of C. Hunter Raine, president of the Mercantile bank, which closed its doors, when he was arraigned on a bench warrant charging embezzlement, growing out of Raine's alleged defalcation of $788,804 of the bank's funds. Over his protest that he didn't want to make bond, Criminal Judge Palmer fixed the amount of the security at $250,000, but Mr. Raine went directly to a cell in the county jail. The hearing lasted only a few minutes. J. L. Hutton, state superintendent of banks, took charge of the Mercantile bank's affairs as receiver. An investigation of the present resources of the bank was immediately begun.

13. February 25, 1914 Atlanta Georgian Atlanta, GA
Article from Atlanta Georgian, February 25, 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 brica-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.

14. 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.

15. February 27, 1914 Newport Daily Independent Newport, AR
Article from Newport Daily Independent, February 27, 1914

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Depositors Will Get Half. Memphis, Tenn., Feb. 26.The assets of the Mercantile bank are being placed in condition for liquidation by Receiver Hutton. He has not divulged the nature of the assets. According to his audit the bank will pay depositors about 50 cents on the dollar, and Mr. Hutton's assistants are busy getting the affairs of the bank in shape for winding up the business as soon as possible.

16. February 28, 1914 The Watchman and Southron Sumter, SC
Article from The Watchman and Southron, February 28, 1914

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president RAINE'S PROPERTY SOLD. Memphis Bank Defaulter's Personal Effects Put up at Auction. Memphis, Feb. 25.-All the household goods and personal effects of Hunter Raine, the defaulting president of the Mercantile Bank were sold at public acution today. They were valued at $200,000. The proceeds will be turned over to the receiver for the bank, which Raine confessed to looting of nearly a million and half dollars.

17. March 6, 1914 Clearwater Republican Orofino, ID
Article from Clearwater Republican, 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.

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. April 12, 1914 New-York Tribune New York, NY
Article from New-York Tribune, April 12, 1914

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# Memphis Bank Settlement. Archibald R. Watson and Caruthers Ewing, attorneys for the receivers of the Mercantile Bank, of Memphis, Tenn., announced yesterday that the affairs of the institution, in so far as they concerned the American Exchange National Bank, of New York, had been adjusted. The full amount due the American Exchange National Bank was paid to it and the collateral held by it, amounting to over $500,000, will be released by the settlement.

20. August 5, 1915 Oxford Eagle Oxford, MS
Article from Oxford Eagle, August 5, 1915

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Sues For Raine Losses. New York.-John L. Emerson, receiver for theMercantile Bank of Merphis. Tenn., brought suit in the United States District Court here July 29 to recover from the cotton brokerage houses of Hubbard & Company and Jenks, Gwynne & Company, $616,895 which was paid to them. according to the receiver, as commissions in cotton future deals by C. Hunter Raine, president of the wrecked bank Raine, according to the receiver, was speculating in cotton futures with the bank's money.

21. August 6, 1915 Macon Beacon Macon, MS
Article from Macon Beacon, August 6, 1915

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Sues For Raine Losses. New York.-John L. Emerson, receiver for theMercantile Bank of Mer. phis, Tenn., brought suit in the United States District Court here July 29 to recover from the cotton brokerage houses of Hubbard & Company and Jenks, Gwynne & Company, $616,895 which was paid to them, according to the receiver, as commissions in cotton future deals by C. Hunter Raine, presi. dent of the wrecked bank Raine, ac. cording to the receiver, was speculating in cotton futures with the bank's money.

22. August 6, 1915 The Hummer Houlka, Houston, MS
Article from The Hummer, August 6, 1915

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Sues For Raine Losses. New York.-John L. Emerson, receiver for theMercantile Bank of Merphis, Tenn., brought suit in the United States District Court here July 29 to recover from the cotton brokerage houses of Hubbard & Company end Jenks, Gwynne & Company, $616,895 which was paid to them, according to the receiver, as commissions in cotton future deals by C. Hunter Raine, president of the wrecked bank Raine, according to the receiver, was speculating in cotton futures with the bank's money.

23. August 6, 1915 McNairy County Independent Selmer, TN
Article from McNairy County Independent, August 6, 1915

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Sues For Raine Losses. New York.-John L. Emerson, receiver for theMercantile Bank of Merphis, Tenn., brought suit in the United States District Court here July 29 to recover from the cotton brokerage houses of Hubbard & Company and Jenks, Gwynne & Company, $616,895 which was paid to them, according to the receiver, as commissions in cotton future deals by C. Hunter Raine, president of the wrecked bank Raine, according to the receiver, was speculating in cotton futures with the bank's money.

24. August 6, 1915 The Dickson County Herald Dickson, TN
Article from The Dickson County Herald, August 6, 1915

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Sues For Raine Losses. New York-John L. Emerson. re celver for theMercantlle Bank of Merphis. Tenn., brought suit in the United States District Court here July 29 to recover from the cotton brokerage houses of Hubbard & Company and Jenks, Gwynne & Company, $616,895 which was paid to them. according to the receiver. as commissions to rotton future deals by c. Hunter Raine, prestdem of the wrecked bank Raine. according to the receiver, was speculating in cotton futures with the bank's money.