Failing in business, banker kills himself

CULVER, Ind. (UPI) The president and chief operating officer of two banks and a failing finance company committed suicide with a shotgun blast to his chest, Marshall County authorities said today.

The banker, Frederic E. Adams, had been deeply ' depressed in recent weeks over the bankruptcy of the State Exchange Finance Co., one of the three financial Institutions under his control. County Coroner Dean Byers said.

Adams' body was found around In the Culver Military Academy bird sanctuary about 12:30 p.m. Monday by a riding instructor and cadet members of the academy's Black Horse Troop Patrol. He had left his offices at the State Exchange Bank in Culver just minutes earlier, Byers said.

Byers declined to reveal the contents of a suicide note he said was found in Adams' pocket. He said the bank president had been killed by a 12-gauge shotgun blast to the left chest. An autospy was conducted Monday night.

The finance company, which is affiliated with the State Exchange Bank and the Farmers State Bank of LaPaz, filed for bankruptcy in South Bend federal court Dec. 30. In a statement released then, Adams blamed the action on loan losses the company sustained because of a depressed farm economy.

Marshall County prosecutors said there had been no criminal investigation of Adams.

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The Indianapolis News
Indianapolis, Indiana
Tue, Jan 11, 1983

CRISIS AT COMPANY CULVER BANKER KILLS SELF
By JOHN FLORA

A Culver bank and finance company executive, apparently despondent over a financial crisis at one of, his institutions, shot himself yesterday on the grounds of Culver Military Academy, the Marshall County sheriff's department said today.

Members of Culver's Black Horse Troop Patrol found the body of Frederic Adams. 57, in his car about 2:15 p.m. at the academy's bird sanctuary.

Marshall County sheriffs deputies said notes found on the body confirmed their ruling of suicide.

Adams was chief operating officer and chairman of the board of directors of the State Exchange Bank, Farmers State Bank and State Exchange Finance Co.

Bank spokesman John Mars said a crisis at the finance company developed about two weeks ago "when a couple of people with large land' holdings, who had over invested, defaulted on their insurance and their interest payments.

"Word got around that the finance company was in trouble and a number of individuals made a run on the finance company. When you have lent out about 85 percent of your assets, you obviously can't respond to that kind of situation," Mars said.

As a result, the finance company went into a Chapter 11 reorganization, he said. "Mr. Adams was the symbol of the banks and the finance company in the community.

He was born and raised here, and he was the nephew of the founder. He took all these things so personally," said Mars.

Mars said there was "no evidence whatsoever of any mismanagement, embezzlement or fraud."

"This was a very profitable financial entity, and it was something that could have happened to any financial institution," he said.

"If everybody were to run into the Chase Manhattan bank in New York and demand their money, the same thing would happen there. Bad news can hit a bank and topple it."

Unlike banks and savings and loan associations, which are protected by the Federal government, finance companies' only option in times of crisis is to turn to the Federal bankruptcy courts, he said.

Rumors of mismanagement and hints of wrongdoing circulated in the wake of the crisis at the finance company, Mars said, adding. "It was just so ridiculous." "I think that Fred took these as a personal affront. There was no justification for any of these things."

Investigators said Adams left the bank to go to lunch about noon yesterday and sometime during the next two hours drove about 100 yards onto the Culver Military grounds from Ind. 10, put a shotgun to his chest and pulled the trigger.

He is survived by wife Marcia; sons John, Jeffrey and William; daughter Mrs. Brad Walker, and mother Margaret Adams.

A World War II veteran of the Seabees, Adams was a member of the Wesley United Methodist Church of Culver, Indiana Bankers Association, American Bankers Association and the Indiana Board of Correction.

He was a director of Bomarco Corp. at Plymouth, and Stelrema Corp. at Knox. He was a past president of the Plymouth Industrial Development Corp. and held memberships in the Plymouth Country Club, Culver Military Academy Fathers Association, Indiana Society of Chicago, Culver Chamber of Commerce and Culver Lions Club.

He also belonged to the Maxinkuckee Odd Fellow's Lodge, Maxinkuckee Golf Club, Lake Maxinkuckee Association, Maxinkuckee Yacht Club and Rochester Elks Club.

Funeral arrangements are incomplete at Bonine Funeral Home

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The South Bend Tribune
South Bend, Indiana
Tue, Jan 11, 1983
By JOHN WILCOX Tribune Plymouth Bureau

Wound self-inflicted Bank chief found dead

CULVER Frederic Adams, lifelong Culver resident and chairman of the board and chief executive officer of the State Exchange Finance Corp. and its affiliates, was found dead Monday afternoon in a wooded area in rural Culver from a self-inflicted shotgun wound to the chest.

Marshall County Coroner Dean Byers, at a press conference this morning in Plymouth, ruled the death a suicide. Byers said Adams, 57, died from a single, s elf-inflicted gunshot wound to the left side of his chest. He placed the time of death between 12:15 and 2:15 p.m. Monday.

The State Exchange Finance Corp. recently filed under Chapter 11 of the Federal Bankruptcy Code. John Mars, one of the banks directors, said today that Adams had taken the recent events and some personal attacks by three or four area residents very personally.

Mars said Adams had been depressed and saddened over the recent events with the financial corporation but had expressed optimism that the worst was behind the company. Byers added that family members said Adams had been depressed at home lately.

According to Marshall County Sheriff Richard Tyson, Adams body was discovered around 2:30 p.m. by Major R. Jeffrey Honzik, director of horsemanship for Culver academies. Honzik was out with several cadets on a horse trail in a bird sanctuary owned by the academy when the discovery was made.

Honzik reportedly recognized Adams car near the horse riding trail and had the cadets wait out side the woods as he rode in, looked over the car and discovered the body.

Adams body was taken to Lafayette, Ind., where an autospy was performed by Dr.Eric Ranchut, a forensic pathologist. There, it was determined Adams died from the single shotgun wound.

A note found on Adams clothing confirmed the death was a suicide, according to Byers. A 12-gauge shotgun belonging to Adams was found next to the body.

Bank employees told police Adams left for lunch between noon and 12:15 p.m. Monday and failed to return for a meeting, scheduled for around 1:30 p.m.

Marshall County Prosecutor Fred Jones said there is no ongoing investigation of any criminal activity of any bank officials that he is aware of, adding he did not expect to initiate an investigation.

The State Exchange and Farmers State banks will remain open, according to Mars, but will close for an unspecified period for Adams funeral.

Jones said they could only speculate that the bank situation led to Adams death. "We don't know what his thought processes were. We can only speculate", he said.

Adams was well known in Culver, where he lived all his life.

"Fred Adams is the State Exchange Bank, and Culver's leading citizen", Mars said. Adams' family has been associated with the bank, whose primary customers are farmers, many years, according to Mars.

Al Cummins, president of the State Exchange Bank and the finance corporation, is currently delegating responsibilities of the finance corporation. No successor to Adams has been named at this time, Mars added.

The State Exchange Banks of Culver, Argos and Plymouth have assets of more than $140 million. The Fanners State Bank of LaPaz and Bremen have assets of more than $44.5 million.

Bank officials in recent days have been emphasizing to the public that the finance corporations financial problems have In no way affected the financial health of the banks.

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The South Bend Tribune
South Bend, Indiana
Wed, Jan 12, 1983
By MATT GALBRAITH and JOHN WILCOX Tribune Plymouth Bureau

Adams among "sufferers" in bank firm's troubles

CULVER Friends and business associates of Frederic K. Adams said the bank executive suffered along with investors affected by the reorganizing of the Slate Exchange Finance Co.

The filing for Chapter 11 just closed the door for him, said Edward O. Schultz, a close friend of Adams and an employee at the State Exchange Bank, of which Adams was chairman of the board and chief executive officer.

Adams, who held the same positions at the finance company and Farmers State Bank, LaPaz, took his own life on Monday, according to a ruling by Marshall County Coroner Dean Byers.

His death came 11 days after the finance corporation filed for reorganization in federal bankruptcy court.

Byers said the autopsy results aren't finished, but should have little effect on his ruling. We don't foresee anything different, he said.

Adams lived to help people and when the problems came, he couldn't do that anymore, added Schultz.

Fred suffered along with the persons who were affected negatively by the freezing of the finance company's $34 million in assets for the Chapter 11 procedure, said John Mars, another director.

Not one negative word could be associated with Fred Adams not one, Mars said this morning. If I could sum up the character of Fred Adams in one word, it would be generous, congenial, amiable, loving and gracious, he added.

Walt Glaub, executive director of the Plymouth Industrial Development Corp. (PIDCO), praised Adams efforts in locating industry within the county. Adams was a past president of PIDCO.

"Mr. Adams", said Glaub, "took an aggressive approach to industries wanting to locate here", adding that Adams was a strong director who cooperated with other financial institutions to attract new industry.

"He was carrying the burden of this whole thing by himself and evidently reached a breaking point", said a bank director, who asked Tuesday that his name not to be used.

The director said Adams family, and most board members, had investments in the finance company. He did not say how much money the Adams family had tied up in it.

State banking authorities, who sent an examiner to the bank upon hearing of Adams death, said today the examiner "found nothing that he deemed important" in a routine audit.

"He (the examiner) was to call us immediately if he felt something warranted our attention," said William Ray, an official with the State Department of Financial Institutions.

"We're assuming that he found nothing that he deemed important enough to call about," said Ray.

Ray described the examiners duties as a hands-on observer looking for abrupt changes.

In a meeting Monday that Adams failed to attend, the directors were discussing with attorneys what powers the directors would have while a group of creditors ran the indebted finance company.

Heavy withdrawals amounting to close to $4 million in late December prompted the Chapter 11 action, and most officials blame false rumors around town for the sudden investor panic.

The director who requested anonymity said Mars was called out of the room, and while he was gone, Sheriff Richard Tyson entered the meeting room and told the directors that Adams body had been found near Culver Military Academy.

Of course, it was a bombshell, the director recalled. "The group was in shock because he (Adams) never, that I know of, missed a meeting".

A bankruptcy judge will determine what creditors will run the finance company But the banks operations are still the responsibility of the board of directors, Ray said.

Among the 10 largest creditors of the finance company are Bomarko, Inc., of Plymouth, and Stelrema Corp., of Knox, both of which Adams served as a member of the boards of directors.

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