Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1916-08-15

up a $1,O00,0OO a year salary con-
tract.
The story of the check is told
graphically by B. C. Forbes in the cur
rent issue of Leslies Weekly, whose
fourth article of his series, Men Who
Are Making America, is about Mr..
Schwab.
Why He Quit q. S. Steel
Also, he gives Mr. Schwabs version
of his resignation from the presidency
of the United States Steel Corporation
and his reasons for doing so. And the
man who has made Bethlehem a
household word in America (and in
Europe), does not hesitate to touch
upon the rumors that have been cir
culated regarding this much discussed
resignation.
The current belief has been that be-
cause of comment upon his move
ments in Europe, J. P. Morgan de-
manded his resignation.
Il never had a difference with Mr..
Morgan In my life" says Mr.. Schwab.
The reason l resigned was because
L could not do what had been doing
all my life. 1 was hampered by direc-
tors and other interests, who did not
give me sufficient play to enable me
TO be useful. If l thought mill ought
to be built at Pittsburgh, 1 didn't want
an important director telling me il
ought to be built at Chicago. If l had
strike involving principle 1 didn't
want to be told to settle it for fear it
might affect the stock market"
independence and initiative and
self-confidence always have been
Charlie Schwab's dominant traits.
Took Big Risks at Bethlehem
There has really been nothing
wonderful about my career" protests
Mr.. Schwab. Il am not a believer in
genius. believe Solomon was right
when he said The race is not to the
SWIFT nor the battle to the strong.
circumstances, environment, oppor-
tunity have a lot to do with a mans
success in life.
But of course there are qualities
that go to make a man really success
full. A man must have personality
that is very important He must have
industry, application and common
sense-no man can do much if he has
not been endowed with a reasonable
amount of brains. He must cultivate
good fellowship, he must be a man
other men will like and trust. He
must have reputation for being fair,
man OF his word. Optimism, cheer
inspire others also help.
happened to be fortunate in get
ting into an industry in its infancy
that offered phenomenal opportunities
that's all. And took risks"
Spent ALI He Could Borrow
In taking risks, Mr.. schwab spent
millions in Bethlehem, backing Beth
lehem with every dollar he had and
could borrow.
Il put my own name to every piece
of paper issued" Mr.. Schwab said. II
took hold of Gray's invention for MAX
ing structural steel ana every i'm
portant company in the country had
turned 1t down." continued the Bethle-
hem magnate, "and because l was
convinced l was right, l spent S15,-
100000 for the proving of that one in
vention. Was that not taking risks?
But 1t gave us the leadership in the
structural steel business in the United
States and in the world There had
never been conspicuously successful
plant in the East. But l believed
Bethlehem had all the elements of
success. 1t is some satisfaction to
have proved my judgment was right"
The S1,OOO,0OO Contract
The story of his life reads like a ro-
nance. But every step forward has
been an honest one, and his business
career is altogether irreproachable
But TO return to the story of the
contract.
When the Steel Corporation took
over the Carnegie Company, it ac-
quired as one of its liabilities - it
really was an asset-a contract to pay
Charles M. Schwab that unheard of
sum annually.
j. P. Morgan didn't know what to
do about it. The highest salary on
record was 100000. He was in
quandary.
Finally he summoned Schwab.
showed him the contract and hesitat-
ingly asked what could be done about
it.
This" said Schwab.
He tore it up.
That contract had netted Schwab
81 800, 900 the previous year.
Il didn't care what salary they maid
me. j was not animated by money
motives. | believed in what / was
trying to do and l wanted to see it
| brought about / cancelled that con-
tract without a moments hesitation"
Thus did Mr.. Schwab explain his ac-
tion to me-
Reimbursed in Bonds
| There was a sequel. Morgan later
/ told Carnegie how magnanimousIv
Schwab had acted. Carnegie remark
! ed: Charlie is the only man l know
who would have done that"
And he promptly sent Schwab in
bonds the full amount of the contract.
| Carnegie has declared publicly
since: Il owe my fortune chiefly to
two men, BIZ Jones and Charlie
Schwab."
Schwab for years picked all the
Carnegie partners = Corey was a
laborer when the eagle-eyed Schwab
first spotted and promoted him. The
only man to who mthe canny Scot
ever gave carte blanche was Schwab
Schwab now is ranked as the great
est creative force in America. Also he
is the best-liked businessman in the
country.
He has had more titles" conferred
upon him than any other living AM
erican. For example, The Worlds
Greatest Steelmaker," The Most Sue