Corporations: A New Boss for Big Steel

During 13 years as the steel industry's chief spokesman, U.S. Steel Chairman Roger M. Blough has become one of the best known American business men—if not the most conspicuously successful one. When Blough steps down next month at the mandatory retirement age of 65, he will leave behind an industry with a stodgy image and a company with a spotty record. In his tenure, U.S. Steel's share of domestic steel sales has slipped from 30% to 25%. Last week, hoping to reverse that trend sharply, the world's largest steelmaker picked a new management group. To succeed Lawyer Blough as chairman and chief executive, Big Steel's directors chose Edwin H. Gott, 60, an operations man who has been president for the past 18 months.

The aggressive new chief is likely to depart from Blough's cautious, somewhat remote style of leadership. More than that, the elevation of Gott—who started his career wearing the greasy overalls and grimy face of an industrial engineer in a U.S. Steel plant—represents a victory of the production men over the financial experts and lawyers who have traditionally run the company.

Other executive changes further underscored the policy shift. To succeed Gott as president, the board picked his longtime ally and fellow production specialist, Executive Vice President Edgar B. Speer, 52. Another executive vice president, R. Heath Larry, a lawyer and Blough protege who has long been considered his heir apparent, had to settle for the post of vice chairman. At 54, Larry is still young enough to have a shot at the top job later.

Terse Releases. Like many huge corporations, U.S. Steel is far too complex to be run by a single man. Under the new setup, Gott will direct the master planning, while the gregarious Speer will execute and expedite policy decisions. Larry, a poised and articulate public relations specialist, will handle labor negotiations and probably share with Gott the role of the industry's unofficial ambassador to Washington.

That job goes with the U.S. Steel chairmanship, but Blough never seemed fully comfortable in the statesman's role. American steelmakers have been beset by many problems, notably the rising level of steel imports, which this year will capture about 16% of the U.S. market. Privately, steelmen have often faulted Blough for issuing terse press releases instead of fully articulating the industry's position on trade and other matters of public policy. Blough's effectiveness in Government relations was further impaired by his 1962 steel-price showdown with President Kennedy—after which J.F.K. complained: "My father always told me that all businessmen were sonsofbitches, but I never believed it till now."