The Cairo bulletin., 1906-02-06
SHONTS .JUCCLED
IN H|CH FINANCE
WALLACE ASSERTS. HE TOOK
UNCLE SANS MOkEY'To
PAY DIVIDENDS.
LIGHT ON BIG DITCH
10 Shed By Former Engineer--MuIti,
I ~ eplieitylSt ,sssss qs sstso y
II Things Caused Hin, to Y
, Resign.

Wallace, former chief engineer Of the
Isthmns Canal commission, today tesi
titled before the senate committee or
inter-oceanic canals which Is investi
eating tho Panama canal affairs. He
chief, engineer and said he made G
protest particularly against what he
called red tape methods and the multi
plicity of masters ana then read Ions
statement He first spoke Of the "vio
lent attack upon me which Secretar,
Taft and Mr. Cromwell gave to tho
newspapers last June" and aske,
that judgment upon justice that at
tacls be suspended until he had op
portunity 10 explain 10 you why
think 1t was absolutely uncalled fo
and uniustiiable. He declared that
the only basis for this attack was thu
difference Of opinion between then
"as to my right to decide for mysel
when | thought the welfare of the en-
terprise and my own welfare iustifie
me in resigning my position"
Liable to Dismissal.
MY appo 'ntment." he added
named no length of time | was to
hold It. and | was liable to be dis
missed at any moment by telegraph
Such being the case | believed then
and believe now. II was my undoubtet
personal right to resign 1t wheneve
| thought II necessary to do so. pro
vided | took abundant care that thf
work in my charge would suffer NJ
harm by my resignation"
Wallace especially crltised Crom
wells activity in canal affairs and i
the matter of his resignation. Crom
well, according TO Wallaces view, wa
the active representative of Secretar'
Taft in nearly every phase of thf
canal management and direction.
Examined Like Witness.
At the interview in New York be
tween hmeslf, Taft and Cromwell tho
latter did the questioning. When he
expressed a desire to resign am
thought his severence could be mad
without injury to the work, Wallac
said Taft disagreed with him. He ant
Cromwell seemed to be making an at
tempt to irritate me and cause me tt
lose my temper" said Wallace. Il wa
examined as a witness in court anf
affirmative and negative answers were
demanded to questions without giving
me chance for qualifying phrases
When this examination was over the
secretary got off denunciation of me
which was almost word for word az II
appeared later i'm the secretary's pub
lished statement concerning my ac
tion. asked the secretary II he tool
the position from which | could be
discharged by cablegram without ?
moments notice.
He took that view of It. and told
him would not permit him nor Crom |
well to dictate my rights. as | know |
them myself.
criticzes shonts Course.
In reply to questions Wallace sale |
he felt he was better fitted than
DflDUlS lOI lHt dEludl ulttNtlOn VI Wv
canal work. He criticized Shont'
course in giving orders which Wallace
said had not been acted upon by tn |
commission.
THAT was one of the questions
desired to discuss with Secretar'
Taft" said Wallace Another thing
was Cromwell's connection with
affairs. He had done several things
with the railroad property which
questioned and seemed to be the con
trolling force in the management OF
the property. | considered he was
dong business along dangerous lines"
JuegIed in High Finance.
IF | catch your meaning. a part Of
your business with the secretary was
TO shake Cromwell off your shoulders"
suggested Senator Morgan. You hav
my meaning" was the reply
Wallace went on to explain that he
thought Cromwell mixed up in SO
many local enterprises on the isihmu
his views might be perverted and II
adopted by the commission scandal
m ght result. One of these acts Of
which Wallace complained was that
in which he asserted that the Panama
railroad the year before it was taken
over to this government. had declared
dividends 100000 more than it had
earned and had then issued bands for
re building and improving the prop
erty. This, declared Wallace. meant
that the amount of money had been
taken out the pocket Of Uncle Sam.
He explained that Cromwell had been
counsel for the road. and said the ac-
tion b0rdsred upon high finances.
Adjournment was taken until tenor
row.