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Matherville State Bank Closes When Depositors Of Savings Demand Cash The Matherville, Ill., State bank closed its doors yesterday, and E. R. Petrie, a bank examiner from the state auditor's office, is conducting an examination of the books and accounts. J. L. Vernon, formerly of Rock Island, and Fred E. Sudlow, 2530 Twentieth avenue, Rock Island, are understood to own the majority of the stock, Mr. Vernon being the president, and Mr. Sudlow one of the directors. A. D. Simpson, Matherville, is the cashier. According to these officials, the bank's suspension is but temporary in character, and was occasioned by the fact that savings depositors became uneasy, partly because of the suspension of the Sherrard State bank last October, and partly because the bank notified its savings depositors that 90 days' notice must be given the bank before savings deposits could be withdrawn. The 90-day requirements, expiring yesterday, the officials state that demands were made by savings depositors to such an extent that they could not be met by the bank. In order to save the assets of the institution, and arrange if possible for its reopening after an adjustment and reorganization had been effected, the bank officials state that they requested the state auditor to take charge. Claim Solvency. They affirm that the bank is in a solvent condition, and that there is enough cash and exchange on hand at present to pay 25 per cent of the deposits. The bank was organized about five years ago, the capital stock being $15,000. The directors of the Sherrard State bank on Oct. 3, 1924, voted to close the doors of that institution, notifying the state auditor that their action was caused by frozen loans and a shortage of surplus. Mr. Vernon was a member of the bank's directorate. The bank had a capital stock of $25,000, and was reorganized on Sept. 1, 1923, as the successor of the Sherrard State banking company, which was in existence for several years prior to the reorganization. It was the suspension of this bank which helped to create a feeling of uneasiness among the savings depositors of the Matherville State bank. Mr. Petrie, the bank examiner, arrived in Matherville today. He informed The Argus that he had not at yet had an opportunity to go into the bank's affairs in detail, and said his examination would probably consume several days. The officials of the bank are emphatic in their statements that the bank is in reality in a solvent condition, and that the intention is to reopen as soon as circumstances will justify such action.
