The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1903-07-03
scHWAB SHOULD RESIGN
Wall Street Journal Declares Steel,
President Has Been q Failure

wall Street Journal Declares Steel
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. Its leading editorial. de-
voted to him, says: Me-
United States Steel, with $4,000 stock
holders, Is the largest Industrial incor-
poration in the world. It is a fit object
Of Interest and discussion. Charles M.
schwab Is still Its president. AS such he
occupies q position of delicacy with re-
spect to his $4,000 stockholders.
II is not merely simple duty that he
mas to perform. In SO FAR as he has been
responsible for guiding the policy with re-
spect to steel prices, and inspiring gem
eraI plans Of management, he has per-
formed one portion of his duty with efh!
cheney and f~aithfulness.
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 it 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.
hrat, that his actions are matter Of pub
Tic knowledge, and. second, that his most
ton involves 6 higher standard than
might be exacted from others. Conser
quently 1t Is the duty OF Mr.. Schwab to
resign his position as president and the
duty OF the directors to accept his restg-
nation.
W have no doubt that IL this has not
actually been done already 1t will be done
before long. The United States Steel cor
porat.on cannot afford to make any more
mistakes. Its career SO far has been
marked by q curious compound of wisdom
and unwiGdom. Too much
can hardly be given to Its policy with re-
spect 70 the iron n steel industry. It
mas proved a great factor Of stability and
nas more than justified expectations of
ehose who promoted it, SO far as this
aspect is concerned.
On the other hand, its financial man
agement must be severely criticised.
sven assuring that the matter of divi-
aenos on the common stock was settled
81 a by exigencies arising out Of
me formation OF the company, there, re-
/ mains the preferred stock conversion plan,
winch from any point of view must be
regarded as unsound finance. It is done
ana cannot be undone. But there must
pe no more of this style of thing. What
Is wanted henceforth is the most careful
management and the most conservatives
financial methods, especially in the times
tnat are coming.
The United States Steel corporation
must remain a great experiment until 1t
nas passed through a period of depression
N business and until It can be seen to
What extent the theory upon which It
was formed holds good in fact. Thus far
al mas gone well and there is at present
no reason to believe that all will not
coneinue to go well. But success will de-
peno Upon Management and upon nothing
else. There must be no more MISTAKES =