The Birmingham age-herald., 1905-06-30
Secretary Taft Gives Him Piece
 of His Mind
HAS SHIRKED HIS DUTY
"For Mere Lucrew He Has Left the Canal Work at
 Most Critical & N,s Time. ls


 Washington, June Exchanging him with changing his position over night for mere lucre.e and being influenced solely by personal advantage" Secretary Taft. in his conference in New York on June D with John F. Wallace, chief engineer of the Panama canal, after administering severe rebuke to him, requested his resig nation on the ground that public interest requires that you tender your resigna- tion at this moment and turn over the records of your office to the chairman of the commission"
 This fact is disclosed in an official state ment issued from the office of the Secre- tary of War tonight, which reviews the relations of MT. Wallace with the war de- pertinent and the commission since the latter body's reorganization last spring, quoting several expressions of the chief engineer of his satisfaction with the en- tire arrangement, and then gives prac- tically a verbation account of the confer ence between Secretary Taft and MT. Wal lace in New York, which concluded with the submission to Secretary Taft of Mir. Wallaces resignation. The statement is sued tonight concludes with the Presi- dents letter to Mir Wallace. dated Cam bridge, Mass, June 2S, which reads:
 Resignation is Accepted.
 "Your resignation as member and chief engineer of the sthmian canal comms- sion, rendered in accordance with the re- quest of Secretary Taft, which request under the circumstances has my entire approval, is hereby accepted to take effect immediately. Very truly yours,
 THEODORE ROOSEVELT"
 The statement shows that MT. Wallace made no complaint against any or his as- sistants.
 Secretary Taft returned to Washington today and went at once to his house, where he summoned MT. Shonts, chair man of the isthmian canal commission, and William Nelson Cornwen, the coun- sel for the commission. They at once en- tered upon the preparation of the state ment which was not ready for publica- ton until late tonight, the secretary in the meantime talking with the President. over the long-dstance telephone at Oyster
 
 tion of the President. it's main feature having been agreed upon when Secretary Taft saw the President at Harvard uni verstty earlier in the week.
 Taft Makes Long Statement.
 Secretary Taft begins with the state ment of MT. Wallace to Chairman Shonts immediately after the organization of the commission, that he would be ready to ac- cept the position of chief engineer at $25,- 000 per year and a residence on the isth- mus and would enter on his duties June 1. When the reorganization of the commits sion was under consideration in Decem- Der, Mir. Wallace wrote Secretary Taft suggesting that If the President and yourself should decide at any time to reduce the commission to three members, residents on the isthmus, the governor of the zone, and the chief engineer should be members of this commission ex- officio," adding that "an organization of this kind with the chairman of the com mission resident in Washington to look after general and departmental matters, would not doubt work satisfactorily and be much less cumbersome than the pres ent one"
 In March Mir. Wallace asked for per sonal interview before any radical changes in the governmental organiza- ton of the commission, disclaiming that he wished additional emoluments, but simply that no condition of affairs be treated which will necessarily interfere with my efficiency here"
 Secretary Taft accordingly submitted to Wallace by cable the detailed plan of reorganization of the commission and re- ceived this reply by cable;
 ''Plan excellent. Satisfactory. Gra- cias." (Thanks)
 The statement says MT. Wallace ex- pressed his unequivoeal approval of the distribution of duties and powers as de- fined in the executive order, especially those relating to the office of chief engi- neer." and during his subsequent stay of six weeks in the United States, daily participated in with his associates in carrying on the same. To the President and Secretary of War and member or the commission and it's counsel he frequently expressed his unqualified approval ana acceptance of the distribution of duties and powers as in the order embodied ana particularly those relating to himself. Twelve days after his arrival on the isthmus Mir. Wallace sent the following cablegram to Secretary Taft.
 Wallace Sends Cabegram. .Jmportam complicated business mat ters which cannot be arranged by cor respondence and which may affect my relations as chief engineer of the com mission necessitate immediate return to the United States to confer with you and others An order from you to return for official consultatio nwill prevent ap- prehension on the part of employees. Sug- gest Shonts remain until my arrival. Please answer"
 Secretary Taft replied:
 "Secretary of War and Shonts in ac- cordance with your request and without Knowledge of circumstances that justify approve your return for consultation with them at Washington"
 Just before sailing MT. Wallace wrote a letter to the Secretary in which he re- ferred to his ntedded visit to the United States. but gave no explanation of his personal plans.
 When they met in New York by ap- pointment, the statement says. MT. Wal lace said part of the interview would be personal to himself and part would con- cern the general canal work on the isth- mus to which Secretary Taft agreed. The statement continues:
 Received Another Offer. "Mr. Wallace then said that a few days before he sent the cable to the Sec retary he received a cable from a prom inent business man in New York asking