Eugene G. Grace

    Though Charles Schwab remained Chairman of the Board of Bethlehem Steel until 1939, he felt the need to give some of the leadership to a dynamic new person who would continue his improvement.  He found this man in one of his "Boys of Bethlehem", Eugene G. Grace, who was appointed president of the company in 1913.  Grace was an electrical engineer who graduated in the top of his class at Lehigh University.  He married a local Moravian woman, and remained in Bethlehem to work through the ranks at "the Steel".  Grace was only 37 when he became president of the company.  One of Grace's leading beliefs was that Bethlehem needed to constantly expand its capacity.  This guiding thought is shown in the difference between Bethlehem Steel's net capacity in 1905 Eugene Graceof 213,000  tons (less than 1% national total) and the 1945 capacity of 11,850,00 tons (14% national total).  (83)  Even in the mid-1950's Grace declared, "I have no qualms about excess capacity.  The United States will never catch up to its material needs and aspirations."  (28)  This philosophy, started by Grace in the 1920ís, would continue with Bethlehemís chief executives for many decades to come.  Another of Graceís notable additions to the character of the Steel company was his establishment of "the Loop" in 1922.  "The Loop" was a management training program, which was meant to rapidly expose newcomers to a series of learning experiences in every department and phase of the steel making industry.  (7)  In years to come, inclusion in the selective Loop program would also include many social and cultural implications.