Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1906-02-27
WALLACE SCORED
By ". n. Cromwell at
the Canal Hearing.
Tells How He Deserted the
Work at q Critical Time.
Sharp Passage Of Words, Just Short Of
Blows, With Senator Morgan.

Washington, Feb. 2G.-The cxamina-
tl"n of William Nelson Cromwell who
mas figured largely in connection with
,hc sale of the Panama canal proper
~ to the United States was begun by
The Senate committee on inter-ocCallic
calais today. Many of the questions
asked Mr.. Cromwell related To the in
tcrvieW ut the Manhattan Hotel in
New York regarding the resignation of
Mr.. Wallace when Sec. Taft. Mr.. Wal
lace and Mr.. Cromwell were present.
There were frequent tits between the
Witness and Senator Morgan because
the former WAS not more specific i'll his
answers to questions by the senator.
Mr.. Cromwell i'll his statement de-
CARED that every penny of the money
paid by the United States government
for the purchase Of Panama railway
stock and for the French canal proper
ty had been accounted for. He stated
that he had declined to accept the pO-
.ition of counsel for the canal commits
sion and that his activity hal been
largely upon the invitation Of the Pres
ident and the secretary of war. He said
that his only financial interest on the
WIS Il personal investment in the cap
iIal stock OF the Panama American
Corporation Of which re owned sol, 800
out nj a total capital of $229, 600. This
company, Mr. Cromwell said. was en-
gagged in supplying the city of Panama
with electric light. ice and telephone
service.
Another statement which Mr.. Crom-
Wei made that attracted much inter-
est was that in all his relations with
the government of the United States
and Panama and even in the acquiring
of the outstanding minority shares of
the Panama Railway for the United
States, which was brought about
through Mr.. Cromwe!l's activity and
labor, not cent was received by him
for his services.
During his statement Senator Morgan
interrupted several times. This was par
ttcularly the case when Mr.. Cromwell as
serted that the reasons given by Mr.. Wal
lace for resigning Mis- position as chief
engineer and y member Of the iSthmian
canal commission in tcstifymg before the
committee, were radically different from
the reasons expressed to the secretary
Of war. Mr.. Cromwell said the account
Of the interview at the Hotel Manhat-
tan in New York. as given to The press
by Sec Taft, was entirely correct. hut he
could not recall the name of Il single
newspaper that had printed the state
mcnt. Senator Morgan insisted that h.
produce a copy OF the statement before
continuing TO discuss it.
When Mr.. Cromwell referred to the let
ter that had been written by Mr.. Wallace
and quoted a. part Of il. upon authority
given by Mr.. Shonts. Senator Morgan
asked the witness if he had the entire
letter. lie said he had copy but dill
pot feel warranted in making public any
other porttl:; unless Mr.. S.ilontS gave his
consent
Senator Morgan insisted and finally
moved that the witness be compelled to
supply tho letter. whcrcupon Mr.. Crom-
we'll agreed to do So
The senator told Mr.. Cromwell that he
had not been asked any questions con-
corning MI Wallace and wanted to kno v
of the witness his purpose in alIudin;,
to Mr.. Wallace.
as it your purpose to contradict or to
impeacii his testimony" asked the soma
tor
the reply.
II repeat. rs II your purpose to con
tradct or impcach Mr.. Wallacc?" asked
tho senator stcrnly.
Again tho witness made tho same an =
Swcr. but when Senator Morgan, in u
nlcnacinG tone, began to ask the u,lcs-
ton for n third time. Mr.. Cromwell said:
'-ff the facts contradict linn. he is con
irad;ctcd: if the facts impcach him, he
is inneachcd.'
Continuing. Mr.. Cromwell said in ar
ranging for the interview between See
Taft and Mr. Wallace he told Mr.. Wal
lace that See. Taft. while not rcsentful,
Was exceedingly panied over the course
he had taken. and that for himself. ii
was impossible to believe that Wallace
retiring from the commits
sion.
The interview which between Soc
Taft, Wallace and Cromwell, was dc
scribed by tho 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 corpora
ton, his eyes were dimmcd with tears
land | confess that mine were too"
said the witness.
Here was a man called upon to do
n transcendant work leaving IFS whom
VIC needed him most" said Mr.. Crom-
we'll. continuing lis testimony. land it
looked as if all the work VIC had done
was about to meet with defeat"
I'VE don't want any sermons about
it. We want facts" said Senator
Morgan. and the witness replied
Those are the facts
Mr.. Cromwell stated that in sub
stance Mr.. Wallace had said on arriv-
irg on the isthmus he had received an
offer from a large holding corporation
in New York of $4,000, that he had re-
Trained from answering the cablegram
rendering the position for several days
when supplemental offer was made
OF $4,000 additional in the way Of
stock in the enterprise, making $4,000
in all as his salary. per year. This he
said. ne could not lightly put aside, as
he had never anticipated so great a
salary and that he owed a duty to his
family as well as to himself to accept
the place.
"yhat occurred at the end of that
.+a+.u,onto,' asked Morgan