Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-02-27
WITH SONG AND STORY WHY WALLACE QUIT
Annual Dinner Given by Carroll CromWes Version OF the Chief
Institute. Engineers Reasons.
RELIGIOUS SIDE PRESENTED QUEST BY MORGAN
Principal Speak Told to Be Specific His State
o the Occasion ments.
WELCOMED PRESIDENT SHEA ANGRY WORDS EXCHANGED
of the Senate
Guests Present on
QUESTIONED BY MORGAN
Told to Be Specific in His State
ments.
WORDS EXCHANGED
| ANGRY v
Dramatic Scene in Yesterdays Ses-
sion Of the Senate Committee
on Interoceanic Canals.

On 1uIoTOCSdu1C N6ua1Ss
In anticipation of interesting develop
ments growing out of William Nelson
Cromwells connection with the Panama
government and the part he played in the
sale of the Panama canal property to the
United States, a large number Of spectators
attended yesterday afternoons meeting Of
the Senate committee on interoceanic
canals.
Nearly all the members Of the committee
were present, Senator Plat Of New York
appearing for the first time since the hear
ings began.
Mr.. Cromwell, after being sworn, began
general statement of his connection with
Panama affairs. The keenest interest was
manifested in his statement in which he
showed that every penny OF the money
paid by the United States government for
the purchase of Panama railway stock and
for the French canal property had been ac-
counted for. He stated that he had declined
to accept the position of counsel for the
canal commission and that his activity had
been largely upon the invitation of the
President and the Secretary of War. He
said that his only financial interest on the
istlmus or in the Republic of Panama was
a personal investment in the capital stock
of tho Panama-American Corporation, of
which he owned sol, SEQ out of total capt.
tai of S229, coo. This company, Mr.. Crom-
well said, was engaged in supplying the
city of Panama with electric light, ice
and telephone service. 1t was local and
private affair and he was induced to take
stock in the corporation in order to assist
a local enterprise
Another statement which Mr.. Cromwell
made that attracted much interest was
the fact that in all his relations with the
government of the United States and Pan
anna. and even in the acquiring of the out
standing minority shares of the Panama
railway for the United States, which was
brought about through Mr. Cromwell's ac-
tivity and labor, not cent was received
by him for his services. He stated that
his final account, with the vouchers OF pay
ment audited by the government depart
ment. was in the government files. and
every share of stock was now In the treas
ury of the United States.
Mr.. Wallace's Retirement.
A feature of Mr. Cromwells statement,
and upon which he was closely questioned,
was with reference to the retirement of
Chief Engineer Wallace and the testimony
which Mr. Wallace had given before the
committee. He said that the explanation
which Mr.. Wallace gave the committee was
radically different from that which he gave
at the time he retired, which was: That
he had been offered larger salary; that
his reasons given after the Manhattan Ho-
tel interview made no reference to Crom-
the day after the interview no allusion was
made to Cromwell.
Required to Be Specific.
While Mr.. Cromwell was making his
statement Senator Morgan interrupted sew
eral times to compel the witness to be spe-
ciic. This was particularly true when Mr..
Cromwell asserted that the reasons given
by Mr.. Wallace for resigning his position
as chief engineer and a member of the 18TH
milan canal commission, In testifying before
the committee We're radically different from
the reasons expressed to the Secretary Of
War. Mr.. Cromwell said he was present
when the explanation was made to the Sec
rotary of War. and that 1t was made at an
interview at the Hotel Manhattan, in New
York He said the account Of that inter-
view, as given TO the press by Secretary
Taft, was entirely correct, but he could not
recall the name of a single newspaper that
had printed the statement. Senator Nor
gan insisted that he produce copy of the
statement before continuing to discuss It,
When Mr. Cromwell referred to the letter
that had been written by Mr. Wallace and
quoted part of 1t, upon authority given by
Mr.. Shonts. Senator Morgan asked the wit
ness If he had the entire letter. He said he
had copy. but did not feel warranted in
making public any other portion unless Mr.
Shonts gave his consent
Senator Morgan insisted and Mr. Cron-
well was firm in his refusal, but said finally
that of course he would furnish the letter
If the committee ordered it.
Senator Morgan then moved that the wit
ness be compelled TO supply the letter and
Mr.. Cromwell agreed to do So
The Hotel Manhattan Interview.
Senator Morgan pressed Mr.. Cromwell
to tell all he knew leading up to the con-
ference at the Hotel Manhattan Mr.
Cromwell said that he had gone to the
Secretary of War for a discussion regard
contract, when the Secretary told him of
Mr.. Wallace's determination to resign.
The interview which resulted between
Secretary Taft. Wallace and Cromwell was
described by the witness as painful in the
extreme; that after Mr.. Wallace had told
the Secretary that he was going to quit
the service Of the government and enter
the employ OF a private corporation, his
eyes were dimmed with tears, land l con-
fess that mine were, too" said the wit
ness. Here was a man called upon to
do a transcendant work, leaving us when
we needed him most" said Mr.. Cromwell,
continuing his testimony, and it looked
as if all the work we had done was about
to meet with defeat
A Dramatic Moment
Then came dramatic moment. Mr..
| Morgan had been plying question after
| question to the witness, asking him to de-
tail conversations between Secretary Taft
! and himself growing out of the resignation
| of Mr. Wallace. which the witness refused
| to answer.
II will deal with you In the Senate when
! the facts regarding the resignation of Mr..
/ Wallace come out" said Senator Morgan.
And that is the only safe place to do 1t, =
| replied Mr.. Cromwell, with burning face
| The two men, scarcely five feet apart,
| looked at each other in anger, but the
| strained situation was moved by Chairman
| Willard who interjected that the witness
| had possibly answered the questions pro-
! pounded Senator Morgan was beginning
| on a new tack when an adjournment was
| taken until 1890 o'clock today.
| At an executive session held by the COM
| mittee later an effort was made to limit
| the range of Senator Morgans inquiry. The
| senator, however insisted that his pro-
| cedure was entirely proper and would not
! consent to have the scope of the inquiry
| narrowed.