“My reason was, that I was made jointly responsible with Mr. Shonts and Mr. Magoon for work on the canal, while Mr. Shonts had a verbal agreement with the President that he should have a free rein in the management of all matters. I felt Mr. Shonts was not as well qualified as I was either as a business man or an administrator, and he was not an engineer.... I thought it better to sacrifice my ambitions regarding this work, which was to be the crowning event of my life, than remain to be humiliated, forced to disobey orders, or create friction.” [Illustration: A STREET AFTER PAVING Before paving it was of the sort shown on page 39] The Wallace resignation was at the moment most unfortunate. There had for months been an almost concerted effort on the part of a large and influential section of the press, and of men having the public ear to decry the methods adopted at Panama, to criticize the men engaged in the work and to magnify the obstacles to be overcome. Perhaps this chorus of detraction was stimulated in part by advocates of the Nicaragua route hoping to reopen that controversy. Probably the transcontinental railroads, wanting no canal at all, had a great deal to do with it. At any rate it was loud and insistent and the men on the Isthmus were seriously affected by it. They knew by Mr. Wallace’s long absence that some trouble was brewing in Washington. His sudden departure again after his return from the capital and the rumor that he had determined to take a more profitable place added to the unrest. Probably the rather severe letter of dismissal with which Secretary Taft met the Chief Engineer’s letter of resignation, and the instantaneous appointment in his place of John F. Stevens, long associated with James J. Hill in railroad building, at a salary $5000 a year greater, was the best tonic for the tired feeling of those on the Isthmus. It indicated that the President thought those who had accepted positions of command on the Canal Zone had enlisted for the war, and that they could not desert in the face of the enemy without a proper rebuke. It showed furthermore that the loss of one man would not be permitted to demoralize the service, but that the cry familiar on the line of battle “Close up! Close up, men! Forward”! was to be the rallying cry in the attack on the hills of Panama. [Illustration: STOCKADE FOR PETTY CANAL ZONE OFFENDERS]