The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-06-30

Canal Commission TAFT Reminded Hit
I'hat He Intended to Abandon sOiem
ObiiE atiOns nj = Crucial Moment al
Denl anded Hts Resignation NJ Once
WASHINGTON, June 29.-Why John !
Wallace rendered his resignation as chic
engineer OF the Panama Canal and as mem
Der Of the governing committee OF the 18th
milan Canal Commission was explained
in detail tonight in statement mad
public by Secretary OF War Taft, in the prep
aration Of which Mr. Taft, Chairman
Shonts of the Canal commission, William
Nelson Cromwell Of New York, who accord
ing to the statement has "been charged BY
the President and the Secretary OF Wa
with general advisory duties in all Pananf
Canal Affairs and Col. Clarence X. Ed
wards. Chief of the Bureau of lnsulal
Affairs, spent all day.
Mr.. Wallace accepted an offer OF the
presidency OF New York holding company
the name OF which has not been disclosed
at salary of between 100000 aud SOS ,ooC
year, and asked permission to come home
from the Isthmus without letting the Adj
minstraiion know that he intended to
resign. According to Secretary Taft's
the evening Of June ~, and Secretar
Taft made appointment for a conference
on Sunday morning. the IS, at the
Manhattan Hotel, in New York city, the
Secretary being then Ell route to New
Haven and Boston. The conference took
place AZ arranged. There were present
the Secretary OF War Mr.. Wallace and Mr..
| Cromwell.
| Mr.. Wallace said that part of the inter-
view would be personal to himself and part
! would concern the general canal work on
| the Isthmus. The Secretary acquiesced
| in Mr.. Wallace's suggestion that he first
speak OF the personal matters. MIR. Wallace
then said that few days before he sent
the above cable to the Secretary he had
received cable from prominent business
men in New York asking IL he would con
slider an offer TO accept an important posi-
tion in New York. and that he had cabled
In reply that it was simply question Of
terms and conditions" and that he had
requested particulars. that the particulars
came, and it proved to be definite offer
OF position as president Of large hold
ing company controlling several other
corporations, with certain stock benefits
and other advantages to himself. which,
with the salary. made it equivalent to $50
GOO year. that he did not at once accept
the offer, but delayed 1t for a few days.
in order to cable the Secretary Of War
during which the parties increased their
proposals between $4,000 and $4,000 a
year making it equivalent to $50 900 or
385 0OO
He stated that the position was an es-
pecaly attractive one and such as he had
only hoped TO obtain after the completion
Of the canal. and thus only after years Of
further service on the Isthmus; that the
duties Of the new position were especially
agreeable and afforded opportunities to
make money through investments. etc
further that the position 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 himself
and wife and was another reason for accept
ing better offer but that his new duties
would not require all OF his attention for
the next two months and that the parties
had agreed that he could close up his canal
work in the meantime, always provided it
did not take him from New York to the
Isthmus.
At the conclusion of Mr.. Wallaoe's gem
In substance. as follows
"Mr, Wallace. | am inexpressibly dis !,
not only because you have taken |
this step. but because you seem 80 utterly |
insensible of the significance OF your con- |
duct. You come with the bald announce
ment that you quit your task at a critical |
moment, on the eve Of important work J
and in the midst OF reorganization plans
under which you accepted your position,
with your department unprotected in or
ganization. and when you know, too, that
my public duties call me to the Philip
pines for several months.
Il must lie allowed to remind you that
when you were employed by the COM
mission little over year ago You were
only receiving Sl'OU per annum under
your former position. and that Your salary
was fixed at the sum demanded by your
self. s25, 600. That was for constant service
OH the lsthmus, where the construction
work was to be performed and your ser
vices were required. You knew the risks
10 yourself and to your family, il they
went with you, In the work you a-.,rmed
an obligation to do. II you had . de-
sired me position You need not have sought
,or accepted It, but | understand that
luite the contrary Vas the case.
events within my own knowledge. When
he President found it necessary to make
, reorganization Of the former commission
you were consulted in the frankest manner
lbout every feature OF the reorganization
md were encouraged freely to express
,our opinions, Indeed your voluntary
uggestions from the Isthmus embraced
he proposal that you yourself be made
member Of the commission and chief
Engineer on the Isthmus. The substances
" the plan OF reorganization. as afterward
embodied In the Presidents executive
rider of April |, was cabled to you by me,
md you cabled me your fullest approval
# it and your thanks, for it includedthe
appointment of yourself as a Commissioner
s you had solicited, and memt,er of the
Iecutive committee.
The new plan Of organization was WARMLY
ccepted and Endorsed by you when You ar {
lived at Washington, and you expressed
your hearty approval OF it in the most un-
squivoca manner, not only to the Pres
dent and myself but to members of the
and it's counsel. and Just before
ailing for the lsthmus you called upon ma
q the warmest terms for what had been
lone in the reorganization Of the canal
york and in the positions which had been
dven you. You cooperated for all those
weeks in the work OF reorganization and
ccepted the position assigned You under
he Presidents order OF April 1. The Pres
dent and myself relied on this fact in
king thast, Tans 9th |