The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1906-02-09
WALLACE TELLS
WHY he QUIT
Says There Was Toe
Much High Finance
and Red Tape.

Washington, Feb. 5.-Former Chle1
Engineer John F. Wallace, of the Pan
anna Canal commission, who was dis
missed during the summer by Secre-
tary of War Taft in a sensational man
ner, got his inning before the senate
investigation committee this after
noon. He declared that his retirement
was forced because of red tape; be-
cause Chairman Shonts, who he said
was not an engineer, gave evidence
of interfering with his work; because
Secretary of War Taft seemed to be-
dominated in his policies by William
Nelson Cromwell the corporation at
torney of New York City, who the
witness declared, was debating as toI
the character of men he should en-
ploy on the isthmus and because
Cromwells advice on Panama railway
affairs savored or high finance" Mr..
Wallace will continue his testimony
tomorrow.
Mr.. Wallace said that after Mr..
Shonts was appointed Chairman OF
the Canal Commission there were in
dications that he proposed to domin-
in a secondary position.
81 felt" said Mr.. Wallace, 'that he
was not as we'll qualified as myself
to conduct that great work, especially
as he is not an engineer. l did not
want to be dominated by anybody who
would come between the administra-
ton and myself l felt that l could
not be loyal and constantly subject
to being humiliated by receiving or
ders which my judgment as an en-
gineer would not justify. There were
plenty of other men who would be
willing to be subordinate to Mr..
Shonts and put themselves in posi-
tion to be dictated to, but for myself,
l concluded that the best thing was
| for me to get out"
The witness said that he had no
ticed during the entire course of the
work that William Nelson Cromwell,
the corporation attorney of New York
| City, had great influence with Secre-
| tary of War Taft, who consulted with
| him on every phase of the work. One
| Of the reasons for witness return
from the istbnus was to talk with
Secretary Taft about Mr.. Cromwelis
connection with the work.
"He seemed to be the dominating
influence in the Panama railway man
agement and he had done several
things which did not line UP Well
with what l considered the right man.
agement of that property" he ex-
! planned
| He said that at one time Mr.. Crom-
| we'll had undertaken to advise him
| as to the character of the men whom
he should employ on the road, etc
| On thinking this over later it had
struck him that Cromwell meant to
imply something more than sug-
| gestion and that he spoke with the
| authority of the secretary.
"Then part of your business while
you were up here was to shake Crom-
well off your shoulders?" asked Sen
ator Morgan.
| "Yes, you have struck 1T" witness
answered. "It did not strike me that
his relations with the work were
such as was desirable. Then it oc'
Cured to me that this man with nc
| official connection with the work bur
who had the ear of the administra
tion might upset my plans and destroy
my authority"
"You considered him dangerous
man them" suggested Mr. Morgan.
mo, | think he was harmless. But
he was mixed up in so many things
counsel and director of the Panama
railway, fiscal agent and counsel o
the Panama republic, stockholder IL
corporations on the isthmus, advise
of the law, etc., that | did no
think it was a desirable condition TO
the government. In looking over tn
accounts of the Panama railway TO
the year preceding its purchase b.
the government, when it was owne'
by the French company, / noticed tha
dividend had been declared of 500,
600 more than had been earned. Tn
company had then sold bonds to sup
ply its treasury. l thought that tn
counsel who would advise that pro
ceeding which practically amounts t
taking money from the government O
the United States and giving 1t t
the stockholders, bordered somewha
on high finance"
rlGnrr RMNlAgF