The San Francisco call., 1905-06-30
Taft Charges Panama Canal
Engineer With Being In
fluenced by "Mere Lllcre'
and Asks Him to Retire
STORMY INTERVIEW
OCCURS IN NEW YORK
High Salaried Employe Re-
bulSed for Quitting His
Task for Another Position
at a Critical Moment

WASHINGTON. June 20.-Chnrging
overnight for mere lucre" and with
being Influenced "soleIy by personal ad-
vantage" Secretary Taft, I'm his confer
encc in New York on June % with John
Y. Wallace, chief engineer of the Pam
anna canal, after administering q severe
rebuke to him, requested his resigna-
tfon, on the ground "that public inter-
est requires that you tender your resiG-
nation this moment and turn over the
records of your Office to the chairman
of the commission
This fact is disclosed in an important
statement issued from the office of the
Secretary OF War, which reviews the re-
Iations of Wallace with the War Depart
men. and with the commission since the
latter's reorganization last spring, quot
ing the several expressions of the chief
engineer Of his satisfaction with the en-
tire arrangement, and then gives practi-
cally verbatim account of the confer
.ence between Secretary Taft and Wallace
IN New YORK, which concluded with the
suggestion to the Secretary that Wallace
resign. The statement issued tonight con-
cluoes with the Presidents letter to Wal
lace. dated Cambridge, Mass. June %,
which reads:
Your resignation as a member and chief
engineer OF the Isthmian Canal Commission,
rendered in accordance with the request of
Secretary Taft, which request under the cir
eumstances, has my entire approval Is here
by accepted, to take effect Immediately. Very
truly yours THEODORE ROOSEVELT.
In his statement Taft says that Wal
lace's wishes We're deferred to in the re-
organizationasof the Panama Commits
sion and the chief engineer. expressed
his great satisfaction at every detail
of the proceeding. He had not been IL
the canal zone two weeks, however
after his last trip to Washington, be-
fore he sent an urgent request for per-
mission to return to the United States
on a mission of great Importance. This
was granted and Secretary Taft met
Wallace in New York by appointment.
Wallace, at this meeting, announced
TO Taft that he had received an offer
i7of az position carrying a, 5000. salary
from New York corporation and de-
sired to accept it, although he was
still willing to serve as a member OF
the Canal Commission, though not as
chief engineer. When Taft had heard
Wallace though, he replied in part as
| follows:
Mr.. Wallace / inexpressibly disappofnt-
ed. not only because you have taken this step,
the Significance OF your conduct You come
with ire bald announcement that you quit
your task at a critical moment, on the eve OF
important work and in the midst of reorgani-
alton plans under which you accepted your
position, with your department unprotected in
organization and when you know too that my
public duties call me to the Philippines for
several months. 1 must be allowed TO remind
you that when you were employed by the COM
mission little over year ago you only
receiving $4,000 per annum under your for
nler position. and that your salary was fixed
at the sum demanded by yourself S25, 600. II
you had not desired the position you need
not have sought accepted 1t, but / under
stand that quite the contrary was the
Now, within twelve days after your arrival
upon the is;hmus. you send cable which,
read in the light of what you say to-day
signifies your practical acceptance of an offer
| of another position inconsistent with the per-
| formance OF your duties the isthnlus
am astonshed that you would be so disre-
gardful of the splendid opportunities of the
| position which would have made you famous
/ the world over by the honorable performance.
of your duty chief engineer.
! NEW YORK, June 29-The offer thai
| induced Chief Engineer John F. Wallace
| to quit his post on the Panama cana
came from the Interborough Rapit
! Transit Company of this city, operating
the elevated and subway lines, and car.
rios with it salary of $4,000 year.