The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1903-08-05
Mr. ScHWAB STEPS
down, But NOT OUT
No Longer President, but Still
Director of Steel Trust,
Whose Policy Is Changed.

NEW YORK, Aug. 1.-The resigna-
ton Of Charles M. Schwab as presi-
dent of the United States Steel cor
poration was rendered and accepted at
meeting of the directors today Will
liam E. Corey was unanimously elected
his successor
Mr.. Schwab's resignation caused no
surprise in financial circles, where 1t
had for some time been foreshadowed.
The new president was for years one
of Andrew Carnegie's ablest iieutenants
and is now president of the Carnegie
Steel company, one of the subsidiary
concerns of the United States Steel
corporation. 1t is scarcely more than
month ago that Mr.. Corey was made
assistant to the president (Mr. Schwabe
because of the latter's continued ill
health. Mr.. .Schwab attended today's
meeting of the directors He seemed
rather glad to be relieved of the duties
imposed on the chief executive of the
billion dollar" corporation. Before
and after today's meeting Mr. Schwab
conferred with J. P. Morgan Mr.
Schwab will continue as director and
member of it's finance committee.
The formal announcement of Mr..
SehWabs resignation contains this:
"The office of chairman of the board
of directors was created and E. H.
Gary was elected to that position and
will continue toFdevote his entire time
to the business of the corporation. An
advisory committee to consist of three
directors besides the president, to con-
slider and make recommendations con-
corning matters of manufacturing,
transportation and operation, was Gre
ated and E. G.. Converse, William Eden
born and D. G. Reid were elected as
members Of this committee. Mr..
Schwab will continue to be a member
of the board of directors and of the
finance committee"
= Mr.. Sehwab said:
I think I have been treated very
unfairly by the newspapers in regard
to the reasons for my retirement. A
number Of reasons, including this
American shipbuilding matter. have
been given for it, but none of them are
true. AS q mater of fact. the ship
building question has never been q
subject of discussion between myself
and the directors
ION my return from Europe, six
months ago, tried to get Mr.. Morgan
and the directors to accept my resig-
nation. but was unable to do so. That
does not look as If / had been forced
out. Later 1 appealed to. Mr.. Frick.
and through him have finally sue
ceeded In Inducing the directors to ac-
cept my resignation. am as deeply
interested in the United States Steel
corporation as ever. I am still the
largest stakeholder and remain as di-
rector and member sof the executive
committee. As result of the meet
Ing thiso afternoon my work has been
divided. The new president is close
in all the offices / have held. My re-
tirement Is on account Of i'll health
nervousness. I have been in bad
health for six months OF more"
j. p. Morgan made this statement:
II deeply regret that the condition
of Mr.. Schwab's health renders it i'm
possible for him to continue at the
head of the steel corporation. His 10y
atty to the interests intrusted to him
cannot be doubted, and from the early
days of the inception of the corpora
ton he gave to its formation unifica-
ton and development, his unequaled
powers as an expert in the manufacture
of steel i consider that in Mr.. Corey
the directors have secured an eminent.
ly competent successor to Mr.. Schwab.
I think that today the steel company,
in all its branches. is in stronger and
better position than it has ever been.''
The new president has entered upon
his duties. and it may be authorita-
lively stated that with his election the
steel corporation has inaugurated a
new policy. There will be less central
ization of power taHd,inereased reSpon-
Sibility in the work of the various COM
mittees. President Corey will devote
his entire attention to the practical
and technical sides of the steel and iron
industry and will receive material aid
from the advisory committee No
other important changes were an
nounced in the personnel or policy of
the corporation. Mr.. Frick continues "a
member Of the finance committee, of
which George w. Perkins is chairman.