Omaha daily bee., 1905-06-30
Twelve Days After He Assu sw Du
BE Wishes to Quit.
STORMY INTERVIEW WITH SECRETARY TAFT
He is Accused of Breaking Faith with the
Government.
CHANGES POSITION FOR MERE LUcRE
Ofer 10 Continue In once in Advisory
Capacity for sixty Days is Re-
Jected by the Presi-
dert.

WASHlNGTON, June 9.-Charging him
with changing his position over night "for
mere lucre" and with being influenced
solely by personal advantage" Secretary
Taft, in his conference in New York on
June 26 with John F. Wallace, chief engi-
neer of the Panama canal, after addressing
a severe rebuke to him, requested his resig-
nation on the ground that public interest
requires that you tender your resignation at
this moment and turn over the records Of
your ONCE to the chairman of the commits
sion"
This fact is disclosed in an official state
ment issued from the Office of the secretary
OF war tonight. which reviews the relations
of Mr.. Wallace with the War department
and the commission since the latter body's
reorganization last spring, quoting the sew
eral expressions of the chief engineer of his
satisfaction with the entire arrangement,
and then gives practically a verbatim ac-
count of the conference between Secretary
Taft and Mr.. Wallace In New York, which
concluded with the submission to Secretary
Taft of Mr.. Wallaces resignation. The
statement issued tonight concludes with
the presidents letter to Mr. Wallace. dated
Cambridge, Mass. June 2s. which reads:
Your resignation as member and chief en-
gineer of the Isthmian Canal commission,
rendered In accordance with the request OF
Secretary Taft, which request has. under
the circumstances. my entire approval,
Is hereby accepted. to take effect imme-
diately. Very truly yours,
THEODORE ROOSEVELT.
The statement shows that Mr.. Wallace
made complaint against any OF his as
sociates.
Secretary Taft begins with the statement
of Mr.. Wallace to Chairman Shonts imme-
deiatoly after the organization of the com
mission that he would be ready to accept
the position of chief engineer at $4,000 per
would enter on his duties June l. Twelve
days after his arrival on the isthmus Mr..
Wallace sent the following cablegram to
Secretary Taft:
Important complicated business matters
which cannot be arranged by correspond
ence and which may affect my relations
as chief engineer of the commission neces-
state immediate return TO the United
states to confer with you and others. An
order from you to return for official con-
ference Will prevent apprehension on the
part, of employees Suggest shonts remain
until my arrival. Please answer
Secretary Taft replied:
Secretary OF war and Shonts in accord
ance with your request and without knowl
edge or circumstances That Justify, approve
your return for consultation with them at
Washington.
Action of MIR. wallace.
When they met in New York by appoint
ment, the statement says, Mr. Wallace
said part of the interview would be personal
to himself and pert would concern the gem
eral canal work on the isthmus, to which
Secretary Taft agreed:
The statement continues:
Mr.. Wallace then said that a few days
before he sent the cable to the secretary
= he received cable from prominent bust
ness men in New York asking ii ne would
consider an offer TO accept an important
position in New York ana that ne had
cabled in reply that 1t was simply
he had requested particulars. that the
tlculars came and that 1t proved to be a
~ definite oner of position as president of
large holding company, controlling sew
eral other corporations with certain steady
benefits and advantages to himself which,
$4,000 year; that he did not at once
accept the oner, but delayed 1t for few
war, during which time the parties in
creased their proposal, making it equivalent
TO $4,000 or $4,000.
He stated that the position was espe-
cially attractive one that the duties of the
\, new position were especially agreeable and
>Narforded opportunities to make money
Through Investments, etc: further, that the
position was such good one that he did
not consider that he could decline 1t; that
life on the isthmus was lonely and accom-
panied with risk TO himself ana wife and
was another reason for accepting a better
office; but that his new duties would not
require all OF his attention for the next
two months and that he could close up his
canal work in the meantime.
strong Talk from Taft.
When he finished Secretary Taft thus ad-
dressed him:
Mr.. Wallace l am inexpressibly disap-
pointed not only because you have taken
this step, but because you seem so utterly
insensible OF the significance OF your con-
duct You come with the bald announce
ment that you quit your taslG at a critical
moment on lne eve OF important work ana
In the midst of reorganization plans under
which you accepted you, position, with
your department unprotected in organiza-
zion and when you know, too, that my pub
lie duties call me to the Philippines for
several months. l am astonished that you
should be so disregardful OF the splendid
opportunities of the position which would
have made you famous the world over by
the honorable performance of your duties
For mere Iucre you change your position
over night without thought of the 'embar-
RAISING position in which you place your
government by this action, when the engi-
neering forces on the isthmus are left with
out real head and your department is not
perfected in organization; when the ad-
visory board of engineers is TO assemble
under call of the president within two
months and when l ain departing for the
Philippines on public duty.
You have permitted the president and al
of us to proceed in full confidence that you
would perform the functions of chief en-
gineer and now, In an hour, you drop youl
as il il were a matter OF no consequence
and all this for your personal advantage
YOU make not the least complaint agains
your NEUTRALITY-SUSPICIOUS. or inferior. u
know OF no possible ground for any. YoJ
are lunuGuCSu Soiclg bS gbul bSIbOAdl du
vantage
Resignation Is Demanded.
Great fame is attached to your office, bu
also equal responsibility, and now you de
sert them In an hour. Even from a stand
q point OF policy, you are making a profounC
mistake. IL you could withdraw from YOU
new arrangements, which do not suggest
l could have no confidence (since l know
now your conception OF duty) that yol
would not In the future repeat the sam'
at moment even more critical wheI
the consequences might be even more EN-
barrassing and injurious TO the govern
ment.
Under these circumstances, Mr. wallace
and with great personal pain and disappoint
ment, am bound 10 say that ! consider th'
public interest requires that you tende
your resignation at this moment. and turI
over the records OF your ONCE TO the chair
|, man Of the Commission.
NJ. Wallaoe's resignation as commits
Continued on Second PaSe,l