Submitted by: Leanna Ihde
From the South Bend (Indiana) Tribune, May 3, 1951:
LONG ILLNESS FATAL
DEATH CLOSES BUSY CAREER OF FINANCIER
FUNERAL SERVICES WILL BE HELD SATURDAY
Ernest M. Morris, 68, of 1237 East Jefferson Boulevard,
founder and chairman of the board of Associates Investment
company, widely known for his philanthropies, died in Memorial
Hospital at 2:55 o'clock this morning following a long illness.
Death was announced as due to cerebral hemorrhage and kidney
failure.
At his bedside when he passed away were his wife and
daughters. They are Mrs. Ella Morris and Mrs. Robert Oare of
South Bend, and Mrs. Oliver P. Carmichael of New York.
Mr. Morris had been suffering from a chronic
condition for the last two years and had recently returned from
New York where he had been a patient at Doctors Hospital. He was
stricken with his fatal illness in the early morning hours of
April 24 and was rushed immediately to Memorial Hospital.
Friends may pay their respects to Mr. Morris Friday
evening between the hours of 5 and 9 o'clock when the body may be
viewed at the residence. It will be moved to First Presbyterian
Church at 10 o'clock Saturday morning to lie in state until 2:30
p.m. when funeral services will be conducted by Rev. Charles
Tupper Baille, D.D., pastor. Burial will be in Riverview
Cemetery.
The death of Mr. Morris brings to an end a career
typically American in that his life was typical of the American
success story. He was born in a log house on a Marshall county
farm about 25 miles southwest of South Bend Dec. 17, 1882. When
he was 11 his mother died and he spent the next few years on one
farm and another working for his board and room.
Through it all he determined to get an education and
by the time he graduated from country school he had saved $50
which enabled his to enter Valparaiso University, Valparaiso,
Ind. He graduated in 1905.
After teaching school and working during one summer
in the wheat fields of South Dakota he was able to attend the
University of Notre Dame law school from which he received his
law degree. Upon graduation he began the practice of law in South
Bend and became interested in Republican politics and government.
In politics he worked for the election of Fred. W. Keller as
mayor on the citizens' ticket and as a reward was appointed in
1913 president of public works during the Keller administration.
This position carried with it an annual salary of
$1,200 on the strength of which he was married the same year to
Mill Ella Lousie Keen, of Cincinnati, Ohio. Although he
eventually became a member of the Republican National Committee,
Mr. Morris never ran for public office.
It was in 1917 that Mr. Morris founded the
Associates Investment company, which under his guidance has grown
to become the third largest independent finance company in the
United States. For the first year he was the president,
treasurer, new business solicitor, credit investigator and the
clerical force and there were times when it seemed the struggling
company was doomed for failure.
The idea for Associates came from Frankfort, Ind.,
where a group of men had invested $1,000 each to engage in quick
real estate turnovers. The idea as presented by Mr. Morris proved
popular with his friends except there were few who had $1.000 to
invest and at the end of the first year the Associates
corporation, as it was known then, was still struggling.
Soon thereafter the realty company was dissolved and
a finance company established. There was no such company in South
Bend at the time with the result that the fast growing automobile
business found it necessary
to
arrange financing in Chicago, Fort Wayne, or Indianapolis. The
name was changed to Associates Investment company and the capital
increased to $100,000.
The task of raising the capital of $100,000 fell to
Mr. Morris, who literally covered the county and surrounding
territory in his effort to interest investors. One of his
calls took him to a Laporte, Ind. automobile dealer whom he
caught in a rage because none of the finance companies had gotten
out a simple sales contract and rate chart showing the monthly
payments.
"I didn't get any business from that
call," Mr. Morris recalled in later years, "but I was
much impressed by the soundness of his suggestion. I did prepare
a simple sales contract on which neither the buyer nor the dealer
had to sign his name more than twice. No other finance company
had such a simple contract or rate chart."
Mr. Morris said that was the first big break his
company received. The second came when he succeeded in obtaining
a $100,000 line of credit from a Chicago bank.
"I wanted $100,000 but would have taken
$50,000," he recalled. "If I couldn't have gotten that,
I would have taken $25,000, but I got the $100,000"
Some years later Associates had what Mr. Morris
called its third big break. It came when he was called to Chicago
by a banker who told him frankly that the company was making so
much money in relation to its capital that he wanted to send two
auditors to South Bend to check its accounts and records. The
audit was made, everything was found to be in order and the
company was complimented on the way it was operated. This
endorsement had a salutary effect on the growing business of the
young company.
Due to what it felt was bad adjustments on the part
of insurance companies, Associates organized its own insurance
company under the name of Emmco Insurance Company. As the finance
business grew, the National Association of Finance companies was
organized in 1926 with Mr. Morris as president. Some years later
when it was succeeded by the American Finance Conference, Mr.
Morris became its first president.
When America entered the second world war Associates
became the first company of its kind to purchase a manufacturing
plant. Plants in Fort Wayne and Muncie, Ind. produced
projectiles, fuses, anti-tank mines, depth bombs, propeller
shafts, ships' winches and 16-inch steel projectiles weighing
2,700 pounds. The manufacturing division received the Army-Navy E
and two stars for continued excellence in production.
During these years, Mr. Morris never lost sight of
South Bend and while many of his charities have never been made
public he always gave generously of his time and money. Almost
every fall found him in the front lines of Community Chest
workers and even during the last few months he had given
encouragement to the organization of the United Fund of St.
Jospeh County which hopes to raise funds for all major agencies
in one campaign next fall.
There was at least one occasion, however, when Mr.
Morris stepped into a local situation that had far reaching
effects o n business and the life savings of thousands of
persons. It was in the dark days of the depression of the 30's
when bank everywhere were in serious troubles. Such was the case
in South Bend when he agreed to assume the presidency of the
tottering First National Bank and Union Trust company on April
20, 1931. At the time Mr. Morris was not a stockholder in either
of the banks but he yielded to the urging of his friends on the
basis that whatever he could do to help would be a civic service.
A few weeks later it was found necessary to
liquidate the Union Trust company. The banking departments
informed the two institutions it would be necessary to separate
the place of business of the First National bank from the Union
Trust and that $1,000,000 would be needed to add to the capital
structure of the First National Bank if it was to remain open.
Previously Mr. Morris had acquired a substantial
interest in the Indiana Trust Company and he realized it would
take fast action if the depositors in First National Bank were to
be saved. He and the late Vincent Bendix provided necessary funds
to the capital structure of the Indiana Trust Company so that it
could assume the deposit liability of the First National Bank. It
was agreed that the Indiana Trust Company shod change its name to
the First Bank & Trust Company and at the same time liquidate
the assets of the First National Bank.
All of this was accomplished while most of South
Bend was asleep on the night of June 4, 1931. Before morning
banks had been moved from one location to another. At 6 a.m.
there was still much to be done. Printers were called from their
beds to print the proper forms and deposit slips. By 9 a.m. all
was set and at that hour on June 5, 1931, the First Bank &
Trust Company opened its doors for the first time; the Union
Trust Company was moved to new quarters and the First National
Bank passed into history.
Notable was the fact that every depositor in the
First National Bank received 100 cents on every dollar on deposit
and South Bend was saved from a financial disaster that could
have had far-reaching effects. A little known fact, except to his
intimates, is that in all the years Mr. Morris served as chairman
of the board of First Bank & Trust Company he never accepted
a cent of compensation. Under his guidance the bank has prospered
until today it ranks as one of the outstanding banking
institutions in the middle west.
In the field of charities the Morris gifts are
almost unlimited and were topped by his presentation to the
University of Notre Dame a year ago of $1,000,000 for the Morris
Inn, now being built on the campus. In the earlier days he was
instrumental in reorganizing the old Coquillard Country Club into
the Morris Park Country Club; financed the Indiana Club when it
consolidated with several other clubs and bought its present home
at 320 West Jefferson Boulevard and with Mrs. Morris founded and
financed the E.M. Morris School for Crippled Children in
Tippecanoe place, which he purchased and presented to the South
Bend board of education.
Mr. Morris was vitally interested in medical
research and early this year established the Morris Chemical
Research Foundation at the South Bend Medical laboratory. His
gift provided for the equipping of a room in a new wing of the
laboratory and with the gift was an endowment to provide chemical
research in the detection, treatment and cure of disease. The
room is in the process of being equipped and will be put into use
within the next few weeks.
For years Mr. and Mrs. Morris have provided a turkey
dinner for the members of First Presbyterian Church, a dinner
from which the church has realized great profit. He gave
buildings to Camp Tanandoonah, the Camp Fire Girls summer camp at
Birch lake near Vandalia, Mich., and several years ago built a
stone cabin at Camp Eberhart, the Y.M.C.A. camp at Corey Lake
near Three Rivers, Mich.
Following his gift to Notre Dame a year ago, Mr.
Morris received appeals from all over the United States. All were
investigated and many of the letter writers received personal
checks. A few months ago he informed three friends that he would
like their advice on extending his charities. At the time of his
death several propositions were under consideration. He also
organized the Morris Foundation last year in the expectation of
using it to further numerous civic enterprises.
In his latter years Mr. Morris became interested in
the arts. With Mrs. Morris he turned over the second floor of the
Morris School for Crippled Children to the South Bend Art
Association, Inc., and presented the association with a number of
paintings by Indiana artist to be displayed in two rooms known as
the Indiana rooms. He also actively supported Mrs. Morris in the
creation of the South Bend Symphony Orchestra and for years has
been one of its principal contributors.
While Mr. Morris never ran for public office he was
greatly interested in the Republican party. He was elected to the
national committee from Indiana in 1940; was removed in favor of
the late Robert Lyons, one-time Ku Klux Klan officer in 1944 and
was re-elected over Lyons at the national convention in Chicago
the same year when Lyons was forced to resign. Mr. Morris retired
from the committee two years later.
At Notre Dame Mr. Morris was a member of the board
of lay trustees for many years and in 1947 was elected its
chairman. The board is composed of outstanding businessmen from
all parts of the country and acts in an advisory capacity to the
university administration on investments and financial matters.
Several years ago he was the recipient of an
honorary law degree from the university.
In addition to his South Bend home, Mr. Morris owned
a farm on the St. Jospeh River between Niles and Buchanan, Mich.,
where he spent many enjoyable hours. Several years ago Mr. and
Mrs. Morris bought an adjoining farm, formerly owned by the late
Eugene Clark, of Buchanan. It became a gathering place for their
many friends during the summer months when they made it their
residence.
In 1938 he constructed on the farm a replica of the
church near Teegarden, Ind., in which his grandparents, the late
Mr. and Mrs. Morris, worshipped and which he attended as a boy.
Both of his daughters were married in the church. Numerous
services of a non-sectarian nature are conducted there.
Surviving Mr. Morris in addition to his wife and two
daughters are five grandchildren, Nancy L., Ernest M. and Robert
L. Oare, Jr., children of Mr. and Mrs. Oare, and O.P Carmichael
III and Carmi Carmichael, son and daughter of Mr. and Mrs.
Carmichael.