Perth Amboy evening news., 1906-02-06
" ALLACE IN
CANAL CASE.
Ex-Chlef of Canal Engineers Be.
fore Senate Committee
Against Red Tapeism

WASHINGTON. Feb. 6.-John Find.
icy wallace, former chief engineer of
the lstilfnlan canal commission, testi-
led before the senate committee Oh
lnteroceanic canals, which is ~investi-
eating the Panama canal affairs. He
related the details Of his selection AS
chief engineer and said he made a pro-
test particularly against what he call
ed red tape methods and d multiplicity
of masters and then read a long state
ment.
He first spoke of the violent attack
upon me which Secretary Taft and Nj.
Cromwell gave to the newspapers last
June" and asked that judgment upon
the justice of that attack be suspended
until he had an opportunity to explain
why j think it vas very uncalled for
and unjustifiable."
He declared that the only basis for
this attack was a difference of opinion
between them las to my right to decide
for myself when thought the welfare
Of the enterprise and my own welfare
justified me in resigning my position"
Mr.. Wallace attributed his clash with
Secretary Taft to the Vaccinations of
Mr.. Cromwell and said: My reason for
~resigning was that | was made Jointly
responsible with Mr.. Shonts and Mr..
Magoon for work on the canal, while
Mr.. Shonts had u verbal agreement
with the president that he should have
a free hand in the management of all
matters. | felt that Mr.. Shonts was not
as well qualified as l was either as a
business man or an administrator, and
he was not an engineer. l thought l
was, to be director general of the canal
work, but soon found | was mistaken"
Mr.. Wallace continued that he came
north to have a private talk with Sec
rotary Taft to explain the real
for his resignation, ito put myself Mt
his disposal, to assist him in securing,
if he desired, my successor
When | found myself confronted
with both Secretary Taft and Mr..
Cromwell" he says, Il contented my
self with giving as a reason for re-
signing the larger compensation l
hoped to ecure in another employment.
| did so because | assumed that reason
would be accepted as sufficient for the
time being and avoid the discussion OF
other reasons in the presence of Mr..
Cromwell. But | soon found that they
had both come to the interview deter
mined to discredit me and if possible
to destroy my reputation
another thing was Mr.. CrOmwelfs
connection with affairs" said Mr.. Wal
lace. He had done several things with
the railroad property, which l ques-
toned, and seemed to be the controlling
force in the management of the prop
erty. | considered he was doing bust
ness along dangerous lines"
Mr.. Wallace went on to explain that
he thought Mr.. Cromwell to be mixed
up in so many local enterprises on the
isthmus that his views might be per-
verified and if adopted by the commits
sion scandal might be the result. One
of the acts of which Mr.. Wallace COM
planned was that in which he asserted
that the Panama railroad the year be-
fore it was taken over by this govern
ment had declared dividends of $780,
900 more than it had earned and had
then issued bonds for the rebuilding
and improving the property. This, de-
clared Mr.. Wallace, meant that that
amount of money had been taken out
of the pocket of Uncle Sam. He eX-
planned that Mr.. Cromwell had been
counsel for the road and said the ac-
ton bordered upon high finance.