The Montgomery advertiser., 1905-07-02
SCANDAL THREATENED
 IN PANAMA CANAL
WORK DELAYED BY POLITICS AND
 ENORMOUS INCREASE OF COST.
At Present Rate of Progress Great Waterway Would Not Be Dug In Thf1ce the Number of Years
 Estimated.

Estimated.
 A highly delicate situation has arisen in the affairs of the Panama Canal Commission. one which may ieao ministration m s a has yet experienced in any other public matter The officials at Washington are desperately en, , &aTa asts to put avfn n the sSads of the kind heard of since American control began on the Isthmus. and might even run in Snros,s G10se eompGif asYairs of the days when the French were try ing to dig the canal
 John T. Wallace. chief engineer or resignation in the hands of the Presi- dent. If this is accepted Mir. Wallace will at once become an important factor the street rairoad situation tSa hna Tn n ths Ryan subway syndicate. rival to the Belmont combine. However, If certain a%ost in ths the cnist nasre ensneer of upon the administration. are colnplMd with he will remain at his post and the public will hear nothing further or in close torch with affairs at Washing ton are of the opinion that MT. Wallace ace win be allowed to E9 eyep 1n at the sae cana od Zone snc1Hicns %hieh every official. from the President down, is anxious to conceal.
 "SituatiOn Delicate," Says Wallace.
 Engineer Wallace ,s praS,tcaeyt spsnt xestern Tn day and last night in conference with his friends in regard to his relations with the administration, and with cer- cerning an offer made to take hold of the position Paul Morton gave up to
 MT. Wallace refuses to say 2 word about the situation until Washington is heard from. although last night World reporter succeeded s A., in cnnrsa having of which. he made significant admissions affirming the statements here made. The chief engineer is staying at m are that no one but intimate friends may see him.
 The reason for Mir. wallace's seciu- sitn Situation S 1T is n so delicate & s; that cannot afford tc be quoted in any shape or manner"
 The attitude Mir Wallace assumed the impression, already current among those fin close touch with affairs. that portentous events are imminent in the engineers return to this country from Panama and his recent interview In this city with Secretary Taft: The and MT. Taft had a stormy interview, that the formers resignation followed and that the chief reason for his ac- ton was the tying of his hands at the from Washington.
 Affairs DemOralised.
 There is some truth in this. but 1t is said that the whole story has not been | told by any means While the admin | istration claims to have q grievance against Mir Wallace, he, on the other aa' oat biRii of Complaint sAa; against in the | Washington officials the chief feature of which will be that the canal will never be built within the present cen tury if politics and departmental in terference are allowed to hamper the work of those on the ground.
 | Upon the best authority The Worlt can state that affairs at Panama ar, in a state of demoralization. and tha the true inwardness of the present strained .nd of in the discrepancy between the op. timistic estimates of the price of the canal and the real cost fin time and It is said that previous estimates, of time for the completion. of the canal, the actual results of the past month are taken as A criterion. Mir. Wallace does not intend that his well earn ed reputation shall be lost on the Isth- | ing the great work under present methods. while. If he should be suc- | ceSSful In spite or all obstacles, the credit would go to those who are in- | terfering with him.
 May Go from Bad to Worse. | When MT. Wallace returned to the States in the latter part of May the demoralization at the canal began. Walter E. Dauchy, who regularly has charge of the Culebra work. was in Panama as acting chief engineer du- ring MT. Wallaces absence that time. Boyd Ehle, who was placed in charge at Culebra resigned on account of dis satisfaction. All of the department heads. with one exception. followed him.
 It Is said that if his resignation is accepted and MT. Wallace does not res turn again. affairs are certain to lapse into worse condition and a scandal of no mean proportions will ensue. To prevent this influential friends of the administration are endeavoring to patch up the present difficulty.
 The astonishing statement Is made by one well informed on Panama at- fairs that, at the rate of excavation accomplished In the month of May, the completion of the canal would require more than one hundred years. The cost of the excavation at tho same time has increased to three and four times the unit figure which were used terway.~ Neither have all the condi- tions of labor and living among the employees, which have caused so much trouble to the commission. been settled in a satisfactory manner.
 During May not more than 7O.0oC cubic yards of material were excavat- ed All this was at Culebra, the only