Business: Personnel: Apr. 26, 1937

Last week the following were news:

In Omaha's big Municipal Auditorium last December, 1,200 members of the Union Pacific R. R.'s Old Timers' Club (20 years or more with the U. P.) played host at an impressive golden wedding banquet for President Carl Raymond Gray and Mrs. Gray. Also in attendance were 27 top-flight U. S. railroadmen headed by President John Jeremiah Pelley of the Association of American Railroads, and 150 bigwigs from other businesses. Toastmaster at the banquet was bald-pated William Martin Jeffers, 61, U. P. executive vice president, who last week was named by Chairman William Averell Harriman to succeed Mr. Gray on Oct. 1. It is at Carl Gray's own insistence that he steps down as president three days after his 70th birthday, so that no exception be made to the U. P. retirement rules. He will become vice chairman of the board with supervision over matters of public policy.

Nebraska-born President-elect Jeffers went to work for the U. P. in 1890 as an office boy at 14, successively rose to be train dispatcher, chief dispatcher, superintendent, general superintendent, operating vice president, executive vice president. Last week he declared: "I would rather be president of the U. P. than President of the U. S."

¶ Raised at a raucous Bethlehem Steel stockholders' meeting in Wilmington, Del. was the perennial question of whether 75-year-old Chairman Charles Michael Schwab is still worth his $200,000 salary. The old steelmaster was on hand to give the meeting his blessing with an optimistic appreciation of the "complete cooperation and understanding between management and stockholders." Hardly had he finished before that ubiquitous meeting-goer, Lewis D. Gilbert ("U. S. Minority Stockholder No. 1"), rose to propose that Mr. Schwab be kicked upstairs into an "honorary chairmanship" with a $25,000 annual pension. Mr. Schwab, said Stockholder Gilbert, had outlived his usefulness. Loudly seconded was this thought by Leopold B. Coshland, a stockholder who once complained that Bethlehem was closer to Mr. Schwab's stomach than his heart.

To the defense of their company's founder rushed many another Bethlehem stockholder. A little man named Souermundt leaped from his chair, snatched off his spectacles and shrilled: "My nose has been punched before but I'm always ready for a fight! Punch him on the snoot, Mr. Schwab! Punch him on the snoot!"

Mr. Schwab laughed. But loyal President Eugene Grace grew white as chalk. Eyes flashing, fist clenched, he said quietly: "Mr. Schwab has not outlived his usefulness to this corporation. His retirement would be a grave mistake." He stalked menacingly toward Stockholders Gilbert & Coshland, was restrained from snoot-punching by fellow officials.