The Kimball graphic. (Kimball, Brule County, Dakota [S.D.]) 1883-1905, 1903-07-03
scHWAB SHOULD RESIGN
Wall Street Journal Declares Steel
President Has Been EaiIure-- -s,

EFN&-1-- Nil Et a.
President Has Been a Failure,
New York, July 1.-Charles M. Schwab
should resign his position as president Of
the steel trust, according to the Wall
Street Journal. It's leading editorial. de-
voted to him, says:
United States Steel, with 60, 600 stock
holders, IS the largest Industrial incor-
poratlon IN the world. It is a fit object
OF interest and discussion. Charles M.
Schwab is still It's president. AS such he
occupies a position of delicacy with re-
spect to his CT, 600 stockholders.
1t Is not merely simple duty that he
has to perform In SO far as he has been
responsible for guiding the policy with re-
spect to steel prices, and inspiring gem
eral plans OF management, he has per-
formed one portion Of his duty with en-
cheney and faithfulness.
But this is not all. He must do all In.
his power to avoid disturbance Of conf
dence In the management, and in this Mr..
Schwab has failed.
1t Is unnecessary to recite the details
OF his failure. Nothing Is further from
our desire than harsh criticism Of his ac-
tons as an individual. It is only fair to
say that 1t would not be difficult to match
anything he has done with what has been
done by very many others occupying high
positions In the financial community, The
trouble with Mr.. Schwab, however. is.
nrst, that his actions are matter OF pub
lie knowledge, and. second, that his posi-
ton involves a higher standard than
might be exacted from others. Conse-
quently 1t Is the duty of Mr.. Schwab to
resign his position as president and the
duty of the directors to accept his resig-
nation.
w have no doubt that IL this has not
actually been done already it will be done
before long. The United States Steel cor
porat.on cannot afford to maxi any more
mistakes Its career so far has beer
marked by a curious compound of wisdom
ana unwisdom. o much commentator
can hardly be given to its policy with re-
spect to the iron and steel industry. It
mas proved a great factor Of stability and
mas more than justified expectations Of
those who promoted 1t, so far as this
aspect Is concerned.
On the other hand, it's financial man
agement must be severely criticised.
Even assuming t!.at the matter Of dtvi-
dends on the common stock was settled
IN advance by exigencies arising out Of
Inc orTnation Of the there, re-
mains the preferred stock conversion plan,
Whlch from any point of view must be
regarded as unsound finance. 1t is done
ana cannot be undone- But there must
De no more of this style Of thing. What
IS wanted henceforth is the most careful
and the most Conservative
financial methods. especially in the times
that are coming.
The United States Steel corporation
must remain a great experiment until it
mas passed through a period of depression
m business and until It can be seer to
"hat extent the theory upon which it
was formed holds good in fact. Thus far
all has zone well and there is at present
no reason to believe that all will not
continue to go we'll. But success will de-
PsHd upon management and upon nothing
else There must be no more mistakes"