The Montgomery advertiser., 1905-06-30
FOR SAKE OF FILTHY LUCRE Taft'S Severe Rebuke to
 Wallace. RESIGNATION DEMANDED Influenced "Solely by Per-
 sonal Advantage" omciai Statement Issued shows Some Details of the Incident--Roose-
 welt stood Behind His
 War Secretary.

Washington. June 2s.--Charging him with changing his position over night flor mere lucre" and being infiunced solely by personal advantage" Secre' tary Taft, in his conference in New York on June 26 with John F. Wallace chief engineer of the Panama canal after administering a severe rebukt to him, requested his resignation on tho ground that public interest requires that you tender your resignation al this moment and turn over the records of your office to the chairman of tht commission"
 This fact is disclosed in an official statement issued from the office of the Secretary of War tonight which reviews the relations of Mir. Wallace with tho War Department and the commission since the latter body's reorganization last spring, quoting several expres- sions of the chief engineer of his satis- faction with the entire arrangement and then gives practically a verbatim account of the conference between Secretary Taft and Mir. Wallace in New York which concluded with the subnis- sion to Secretary Taft of Mir Wallace's resignation. The statement issued to- night concludes with the Presidents letter to MT. Wallace. dated Cambridge, Mass, June 2ss 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 circumstances, has my entire approval, Is hereby ac- cepted. to take effect immediately.
 'very truly yours,
 Theodore Roosevelt"
 The statement shows that Mir. Wal lace made no complaint against any of his assistants.
 Summoned fer Conference.
 Secretary Taft returned to Washing ton today and went at once to his house, where he summoned Mir. Shonts, Chairman of the Isthmian Canal Com mission. and William Nelson Cromwell the counsel for the commission. They at once entered upon the preparation of the statement, which was not ready for publication until late tonight, the Secretary meantime talking with the President over the long distance tele- phone at Oyster Bay. The statement was issued by direction of the Presi- dent, its main features having been agreed upon when Secretary Taft saw the President at Harvard University early in the week.
 Secretary Taft begins with the state ment of Mir. Wallace to Chairman Shonts Immediately after the organiza- tion of the commission that he would engineer at S25.000 per year and a resi- dence on the isthmus and would enter on his duties June 1. When the re- of. the commission was under consideration in December. Mir Wallace wrote Secretary Taft suggest ing that If the President and yourself should decide at any time to reduce tine to three members resident on the isthmus. the governor of the zone and the chief engineer should be of this commission. ex-offlcio" adding that "an organization of this kind with the chairman of the commis- sion resident in Washington to look after general and departmental matters would no doubt work satisfactorily and be much less combursome than the present one"
 In March Mir. Wallace asked for a interview before any radical changes in the governmental organi- ration of the commission, disclaiming that he wished additional emoluments but simply that no condition of affairs be created which will necessarily in- terefere with my efficiency here"
 t wallace Was Satisfied.
 Secretary Taft accordingly submit ted to Mir Wallace by cable the de- tailed plan of organization of the and received this reply by cable:
 Plan constitutional. Satisfactory. Gracias (thanks.)"
 The statement says MT. Wallace ex- pressed his unequivocal approval of the distribution of duties and powers as defined in the executive order. "es- pecially those relating to the office of Chief Engineer" And during his sub sequent stay of six weeks in the Uni- ted States daily participated in con ferences with his assistants, in carry Ing out the same. To the President and secretary of war and members of the commission and its counsel he fre- luently expressed his unqualified ap- proval and acceptance of the distribu- lion of duties and powers as in the order embodied and particularly those relating to himseIt.
 Twelve days after his arrival on he Isthmus MT. Wallace sent the fol- owing cablegram to Secretary Taft:
 Important complicated business matters which cannot be arranged by and which may affect my relations as Chief Engineer of the commission necessitate immediate re- turn to the United States to confer with you and others. An order from you to return for official consultation will prevent apprehension on the part ,f employees. Suggest Shonts remain lntiI my arr'.al. Please answer"
 Secretary Taft replied:
 Secretary of War and Shonts, in ac- ,ordance with your request and with ,ut knowledge of circumstances that Justify, approve your return for con Jultation with them at Washington"
 Just before sailing. Mir. Wallace wrote a letter to the secretary in which he referred to his intended visit 70 the United States. but gave no ex- olanation of his personal plans.
 The Reason Explained.
 When they met in New York by ap- ,ointment, the statment says, MT. Wallace said part of the interview would be personal to himself and part would concern the general canal work m tn Isthmus, to which Secretary Taft agreed.
 The statment continues:
 "Mr. Wallace then said that few iays before he sent the cable to the Secretary he received cable from a orominent business man in New York asking if he would consider an offer to ,ccept an important position Tn New York and that he had cabled in reply mat 1t was simply a question of terms ana conditions. and that he had re-