The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-07-01
BY TEDDY
Member Of and Chief Engineer OF The
Panama Canal Commission
Changed His Position
For Personal AdvaE.
taueS.
tages.
(By the Associated Press.)


advantage" Secretary Taft in his con-
ference in New York on June rs, with
John +. Wallace, Chief Engineer of
the Panama Canal, after administering
a severe rebuke to him requested his
resignation on the ground that public
interest requires that you tender your
resignation at this moment and turn
-Over the records of your office to the
chairman Of the Commission"
This fact is disclosed in an official
statement issued from the office of
Secretary of War tonight. which re-
views the relations of Mr.. Wallace
with the War Department and the
Commission since the latter body's re-
organization last spring. quoting the
several explanations of the Chief En-
gineer of his satisfaction with the en-
tire arrangement, and then gives pos
sibly a verbatim account or the con-
ference between Secretary Taft and
Mr. Wallace in New York. which con-
cluded with the submission to Secre-
tary Taft to Mr.. Wallace's resignation.
The statement issued tonight concludes
with the Presidents letter to Mr.. Wal
lace, dated Cambridge, Mass. June
2Sth, which reads
Your resignation as member ana
chief engineer of the Isthmian Canal
-
with the request of Secretary Tatt,
which request under the circumstances
has my entire approval is hereby ac-
cepted to take effect Immediately.
Every truly yours
THEODORE ROOSEVELT.
The statement shows that Mr.. Wal
lace made no complaint against any
of his associates.
Secretary Taft begins with the state
ment of Mr. Wallace to Chairman
Shonts Immediately after the organlza-
ton of the commission that he would
be ready to accept the position OF chlel
engineer at $4,000 per year, and Il
residence on the isthmus and would
enter on his duties Jtine |. When he
reorganization of the commission was
under consideration in December Mr.. |
Wallace wrote Secretary Taft suggest |
ing that "if the President and yourself
should decide at any time to reduce
the commission to three members resi-
dent on the isthmus, the Governor OF
the Zone and the chef engineer should
be members of this commission eX-
officio"
In March Mr. Wallace asked for
personal interview before any radlcal
change in the government organization
of the commission. Secretary TAFT &C
cordingly submitted to Wallace by
cable the detailed plan of reorganiza-
ton of the commission and received
this reply by cable:
plan excellent. Satisfactory. Ora
cious Ghanks).
The statement, says Mr.. Wallace.
expressed his unequVoCal approval OF
the distribution of duties and powers
as defined in the executive orders. par
ticularly those relating to himself.
which required the performance by
him of the duties Of con truCtiVe en-
gineer upon the isthmus.
Twelve days after his arrival on the
sthmus Mr.. Wallace sent the following
cablegram to Secretary Taft.
important complicated business
matters which cannot be arranged
by correspondence and which may af-
feet my relations as chief engineer of
commission, ncce' states immediate re-
turn to the United States to confer
with you and others.
Secretary Taft replied approving
Wallace's return.
Secretary Taft and Mr.. Wallace met
in New York by appointment and ac-
cording to the statement:
"Mr. Wallace said that few days
before he sent the ulble to the secre-
tary he had received a cable from
prominent business men in New York,
asking if he would consider an Offer
to accept an important position in New
York. and that he had cablcd in re-
ply that it was simply a question OF
terms and conditions and that he had
required particulars; that the particu-
lars came. and it proved to be definite
offer of a position as president of q
large holding company, controlling
several other corporations. with GER
tain stock benefits and other advan'
tages, which, with the salary, made ii
equivalent to $4,000 year; that he
did not at once accept the offer, but
delayed it for a few days, in order to
cal lie the Secretary of War, during
which to parties increased their pro-
posa, between ten and fifteen thous-
and dollars year, making it equiva-
lent to 100000 or more. He stated
that the position was an especially at
tractive one and such as he had hoped
to obtain after the the completion of
the canal, and thus only after years OF
further service on the 1sthmus; that
the duties of the new position Wert
especially agreeable and afforded OPP.
portunities to make money through
investments, etc, further, that the po-
sition was such a good one that he did
not consider that he could decline it,
that life on the Isthmus was lonely
and accompanied with risk to him.
self and wife, and was another reason
for accepting a better offer. He con-
sidered that the holder OF the office
had right to retire from 1t at his OPP
ton at any time"
When he finished Secretary Taft
thus addressed him.
Mr. Wallace, l am inexpressibly
disappointed. not only because you
have taken this step, but because you
seem so utterly insensible of the sig
niticance of your conduct. You come
with the bald announcement that you
quit your task at critical moment,
on the eve of important work and in
TIE midst of reorganization plans I'M
der which YOU accepted your position,
l must be allowed to remind you that
when you were employed by the COM
mission a little over q year ago you
were only receiving $4,000 per an
ann. Under your former position ana