New-York tribune., 1911-01-05
SAY COREY NEEDS A REST
But Explanation Is Not SatlsfaC.
tory to Wall Street.
GARY IN OPTIMISTIC MOOD
Steel Chairman Says Prospects
of Business for Coming
Year Are Good.

Friends OF William f. Corey. who sent
his resignation as president OF the United
States Steel Corporation 10 the board of
directors Tuesday afternoon. said yester-
day that his reason for severing his con-
nection with the corporation was that he
was Ill and needed long rest.
Wall Street remembered that similar
reason was given for the retirement ot
Charles NJ. Schwab from the head OF the
Steel Corporation seven years ago ana re-
fused TO accept 1t az the explanation Oh
Mr.. Corey's resignation. The opinion re-
mained. as stated I'm The Tribune yester-
day, that II was directly due TO the no.
toriety following his divorce from his hrst
wife and his subsequent marriage 10
Mabelle Gilman, the actress.
In some quarters it was held that diner
ences OF opinion between Mr.. Corey ana
others prominent in the affairs OF the
corporation over general questions OF poi-
icy were responsible for his action.
II is believed that Mr.. Corey VIII con-
tinue AZ president until the annual meet
ing in April. His reason for tenderins nis
resignation so long in advance, II was saiu'
was because he wanted time TO arrange al
fairs of the corporation over whicn ne hau
direct charge. so that there would be no
hitch In turning over his duties to his sue
cessor or successors.
Judge Gary, while not ~llhns 10 uiS.
the resignation Of Mr.. Corey, talheu @oous
tho business outlook and the conoito'i oi
tho stee, trade He called attention 10 the
fact that a wear ago he was about the ohiE
ono IN issue a note OF warning In regard 10
tbe business outlook for the coming year
bit he said he did not take much
In the pessimisuc talk that was soi"e
around in Wall Street, but, on 'he 1oii
trarv. was conservatively optimistic o'ei
the prospects for the coming year.
speaking Of reports OF poor conditions III
,bs stee, trade during the last feW mon'ne'
be said the output OF ingots and steel ra''s
~, the subsidiary companies OF the steer
CORPORATION for the year just ehoeu was
larger than In 1909. He refused 10 man on
estimate of the earnings of the steer LOT
noration for the final quarter OF lhe year
b,,, be said he did not think the net ear"
to- would reach 100000, as has been re-
ported. osor,a-
In regard to his invitation 10 represe"." .,
,Iyes OF the leading steel interests
country TO a dinner at the Waldori oh VIZ
night of January II, Judge Gary ss'u 'na
{, would be simply friendly gather'iie' a,iN
that the steel business would not I've
cussed. except informally. lie uenieu Wv
renort that the object was 10 co"S'ue'
ductions in steel prices. W.
s,,ce tho announcement that George W.
Perkins would retire from the hii'' - ~
y Morgan & Co. great deai mas
sa,d and written in connection with 'te
n,,h,icitv insurance, pension ana prom,
sharing features Of the United states 0teo,
Cornoration and credit has been Des'o"eu
upon various individuals.
:, was said Yesterday that the puohci'y
plan originated with the feue' :"
cor,nan7.. now a subsidiary OF the ohi'eu
states Steel Corporation ana was Tue ''
alton OF Judge Gary
"Uhen the Federal Steel Compah! "ds
absorbed" the statement contlnueo,
.Judre Gary argued that the success Vi
the United States Steel Corporation ue-
nended on It's willingness 70 take '"e
ebareho,ders and public into its confidence,
and that full and periodical statements OF
a.rrinqs orders on hand, complete ana
thorough balance sheets and full annual
renorts giving all details and developm.n'S
were necessary IN order TO accomphsh th's'
"At the time It was generally NhoW"
that a great deal of water had been m
iectad into the corporation at the time OF
organization, and there were certain III,
terests identified with United States steer
who objected to wide publicity at tha'
time. but the chairman OF the ooar' hnalE
carried his point. Since organization tne
corporation has added something hhe
$500 600. 900 10 its value in new construction
etc, thereby ejecting large percentage
OF the water with which the company was
burdened at the time of organization.
so far as the profit sharing plan Is con-
cerned the United States Steel Corporation
at the start had in view plans Tor per-
mitting workmen TO share with stocRnoid-
ers in the profits of the company. Andrew
Carnegie's profit sharing plan was simply
taken up and elaborated upon by the board
of directors. a committee composed OF j"
II. Gary. George W. Perkins, Francls
Iynde Stetson and others was appointed
and drew UP the plan now In force.