The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1906-02-14
Wallace Hints Of Scandal
In The Panama Railroad
TESTIFIES BEFORE THE
COMMITTEE THE CIRCUMSTANCES OF HIS
RETIREMENT THE ISTHMUS-TOLD OF
TROUBLES

was present, and said Cromwell sent |
a man to meet him at the wharf and !
that Cromwell called at his hotel de
legated by Secretary Taft to arrange !
an interview"
Wallace said he told Secretary Taft |
there were two reasons for his trip |
one personal and the other general. |
When asked by Senator Morgan if he |
had protested when Cromwell had been |,
asked to remain at the interview by |
Secretary Taft, Wallace said:
mo- I thought I had made my wish |
es plain, and 1 was impressed with the
fact that the Secretary seemed to be
very angry and was trying to suppress |
his feelings. 1 felt until my resigna-
ton was accepted I was the Secre-
tarys subordinate. I did not want to
precipitate any i'll feeling, but the sit
uation has changed my entire attitude"
How did you regard Cromwell-as
an adviser or spy?" asked Senator
Morgan, and Wallace replied that he
simply felt that Cromwell had a great
deal of influence with the Secretary.
Senator Morgan asked what reply ne
had made to the question as to why
he had come to New York
Il said 1 desired to resign as chief
engineer" said Wallace. 1.-THE Secre-
tary made no replyy and I outlined the
method in which 1 thought my sever
ance could be made without injury
to the work The Secretary said he
disagreed with me, and he and Mr..
Cromwell seemed to be making an
attempt to irritate me. l was examin-
ed as a witness in court, and affirma-
tive and negative answers were de-
manded to questions without giving a
chance for qualifying phrases.
when this examination was over
the Secretary got off a denunciation
of me which was, almost word for
word. as it appeared later in the Sec
retary's published statement concern
ing my action l asked the Secretary
if he took the position that 1 could not
resign when l was in a position from
which I could be discharged by cable
gram without a moments notice. He
took that view of it, and l told him
that l would not permit him nor Mr..
Cromwell to dictate my rights, as 1
knew them myself. Then the Secre-
tary said l should have given a years
notice, and 1 replied, That is a mat
ter for discussion. and l think we
should talk it over whereupon the
Secretary said, Well, 1 won't stop to
dicker with you. That would be dick
ering.'
''I told Secretary Taft I had an offer
I should like to accept that would
give me a compensation practically
double that which 1 received from the
kn11 h to- oil nh he
negotiations, as 1 wanted to disabuse
his mind of the idea that 1 was coming
to him to get an increase of salary. 1
had not accepted the higher salary,
nor have l since l told the company
Offering me the place that 1 would not
accept it until satisfactory arrange
ments could be made for me to lsave
my work with the Government"
In reply to questions, Wallace said
he felt he was better fitted than Shonts
for the actual direction of the canal
work. He criticised Chairman Shonts'
course in giving orders which Wallace
said had not been acted upon by the
commission.
THAT was one Of the questions 1
desired to discuss with Secretary
Taft" said Wallace. Another thing
was Mr. Cromwell's conn ction with the
railroad property, which I questioned,
and he seemed to be the controlling
force in the management of the prop
erty. 1 considered he was doing bust
ness along dangerous lines"
IF 1 catch the meaning, a part of
your business with the Secretary was
to shake Cromwell off your shoulders?"
suggested Senator Morgan.
you have caught my meaning" was
the reply.
Wallace went on to explain that he
thought Cromwell to be mixed up in
so many local enterprises on the 18TH
mus that his views might be perverted
and if adopted by the Commission,
scandal might be the result. One of
the acts of which Wallace complained
was that in which he asserted that
the Panama Railroad the year before
it was taken over by this government
had declared dividends of 100000 more
than it had earned, and had then is
sued bonds for rebuilding and improv-
ing the property. This, declared Wal
lace, meant that the amount of money
had been taken out of the pocket of
Uncle Sam. He explained that Crom-
well had been counsel for the road
and said the action bordered on high
finance
Adjournment was then taken until