assumed the obligation of preparing one of the important papers which will be presented at this convention, and while I would not go to the States for this purpose alone, if it will fit in without interference with my duties as chief engineer of the Isthmian Canal Commission it will of course be agreeable for me to do so. I would also like to attend this convention in the interest of the Isthmian Canal Commission, as there will be exhibited in Washington at that time almost every article in the way of railway and construction appliances, and I would be given an opportunity to meet and confer with the best experts, not only from America, but from all over the world, in regard to matters of this kind. As the principal part of the work here is more or less a railroad proposition, and the principal machinery will be steam shovels, excavators, cranes, locomotives, cars, track, and various railroad and excavating appliances, this is an opportunity that, from the standpoint of the chief engineer of the Isthmian Canal Commission, should not be missed. I would also like to spend several days during this exposition in having Major Gallagher, or whoever is to be the purchasing agent of the Commission, go over the exhibits with me, so that I can explain to him the difference between the quality and efficiency of the various appliances and materials, as you can appreciate how we will be hampered by having the head of our purchasing department and the clerks under him entirely ignorant of the relative degrees of quality and efficiency of the machinery which will be needed in this work. I will also desire in connection with my business trip at that time to take my annual vacation. I had first thought of eliminating this this year, but the effects of the climate and the extraordinary amount of work thrown upon me, due to organization matters, is commencing to wear, and I feel that I should not go through another summer here without taking sufficient time in the States to thoroughly recuperate, so that I will be in the best possible physical condition to push the work for the following year upon my return. I also find that the probabilities are the condition of the work will be in such shape that I can be better spared from the Isthmus during May or June than either earlier or later. In case, however, anything should happen that my presence might be desired in Washington at an earlier date, I should desire at least two weeks' notice, so that I will have sufficient time to leave matters in proper shape during my absence. Very respectfully, JOHN F. WALLACE HOTEL MARIE ANTOINETTE, Hon. Wм. H. TAFT, Secretary of War, Washington, D. C. MY DEAR MR. SECRETARY: I arrived in New York late yesterday evening. Mr. Cromwell called this morning and advised me that he had been instructed by you to say to me that you preferred I should remain in New York and await your arrival here for an interview Sunday, instead of my going to Washington, as I had originally intended. Consequently I sent you the following telegram to confirm the engagement made by Mr. Cromwell: In accordance with instructions from you through Cromwell, will remain in New York to meet you Sunday at such time and place as you desire. I await your pleasure, as it may be expressed either direct or through Mr. Cromwell, as to time and place of meeting. I am stopping at the Hotel Marie Antoinette, where I can be reached at any time. JOHN F. WALLACE, Very truly, yours, Chief Engineer. ISTHMIAN CANAL COMMISSION, The PRESIDENT, White House, Washington, D. C. (Through the Secretary of War.) SIR: I have the honor to hereby respectfully tender my resignation as member of the Isthmian Canal Commission, to take effect at such time as may suit your pleasure and convenience. Very respectfully, JOHN F. WALLACE, Member Isthmian Canal Commission. Mr. T. P. SHONTS, [Personal and confidential.] ISTHMIAN CANAL COMMISSION, Chairman, Isthmian Canal Commission, New York City. MY DEAR MR. SHONTS: I have had confidential advices that the Chicago Record-Herald intends to publish an article to-morrow morning stating that the President had found things unsatisfactory on the Isthmus and had requested my resignation. I of course can not feel but that this is being done to injure me and is being instigated by some one. If you can bring any influence to bear in any direction to prevent an act which will lead to results that no one can foresee, and which will be deplorable to our mutual friends connected with the Administration, you will certainly be doing a wise act and a kind deed if you can head it off. While I desire to leave matters in the most satisfactory shape for yourself and the Administration, I of course can not let any statement of this character go unchallenged, and I think that all our friends connected with the canal work will realize that no good and much injury will be done the cause by an article of this nature. It can certainly benefit no one. Confidentially I desire to tell you that I sent my formal resignation from all the positions I hold in connection with the work to-day, and that I have absolutely refrained from any statements to the press, as I thought that anything that should go to the press should be after mutual agreement and consideration among those interested. A little prudence at this time upon the part of all of us may prevent a most unpleasant situation. Very truly, yours, Mr. JOHN F. WALLACE, New York. J. F. W. NEW YORK, June 27, 1905. MY DEAR Mr. WALLACE: I acknowledge your two favors of yesterday, one of which I received yesterday afternoon and the other this morning. When I reached New York Sunday morning, I went as usual to my brother-in-law's apartments at the Waldorf, and while there received word from Secretary Taft to call upon him at the Manhattan. I immediately went there; saw Secretary Taft and Mr. Cromwell; was told of their conference with you and its results. As the Secretary had other parties with him and was taking the 1 o'clock train, I, at his request, accompanied him part of the way that he might inform me of his views upon the situation thus created. I can not tell you how distressed and surprised I was at this turn of affairs. I need not say that I most fully reciprocate your expressions of cordiality and good will, and the only consolation in the severance of our official relations is the fact to which you so kindly allude—our personal friendship and the complete harmony of our cooperation in the work up to this point. As you say, the subject is relieved entirely of the personal element, there being not the least friction between the members of the Commission, but I would not be just to myself (especially as I was influenced in accepting the chairmanship by the assurance that you would discharge the important duties of constructive engineer) if I did not say that I can hardly agree that you had the right to make other engagements before we had carried out the programme agreed upon and which you so heartily approved of. With regards, I am, sincerely yours, T. P. SHONTS. ISTHMIAN CANAL. COMMITTEE ON INTEROCEANIC CANALS, UNITED STATES SENATE, Washington, D. C., Friday, April 20, 1906. The committee met at 10.30 o'clock a. m. Present: Senators Millard (chairman), Kittredge, Dryden, Hopkins, Ankeny, Morgan, Taliaferro, and Simmons. Present, also, Maj. Gen. George W. Davis, U. S. Army, retired. STATEMENT OF HON. WILLIAM H. TAFT-Continued. The CHAIRMAN. Mr. Secretary, as we have all before us the statement which you have made to the committee during the past two days, I think we are ready to proceed with the questioning. Senator Morgan, do you wish to take up the questions with the Secretary this morning first? Senator MORGAN. Yes, sir. The CHAIRMAN. Please proceed, then. We are all ready. Secretary TAFT. May I introduce something that I omitted from my statement? Senator MORGAN. Of course; or make any statement that you desire to make, Mr. Secretary. Secretary TAFT. This is something that I omitted. A clause of this kind occurs on page 2400 of the evidence, the report of the Isthmian Canal Commission of 1904, printed in connection with the testimony of General Davis. [Reading:] "An important question of policy is yet to be determined. If the Isthmian Canal Commission are not bound by any restriction of Congress as to where they shall purchase machinery, material, and supplies, then it would seem to be their duty to construct the canal as cheaply as possible, and so to buy what they need where they can get it cheapest. This, however, is certain to produce, every time that a large contract is awarded to a foreign manufacturer or dealer, an outcry on the part of the American unsuccessful competitors. If Congress approves the policy of favoring American manufactures and dealers, even if it increases the cost of the construction of the canal, then it seems to me only just that it should declare this policy by law and lay down a rule which the Commission can easily follow." It is entirely natural that almost everything which is bought should be bought in the United States, provided there is no great discrepancy |