Jan. 7.—Gifford Pinchot, leading representative of the principles of former President Roosevelt in the federal government's policies of conservation and forestry protection and the principal antagonist under Taft of the corporations which he alleges are seeking to control the vast and valuable water-power grants and forestry resources of the United States, tonight was summarily dismissed from his office as chief forester by President Taft. Pinchot's dismissal, while not entirely unexpected, came as a thunderbolt both to the insurgents and to the Taft-Cannon-Aldrich combine in Washington. The capital city tonight is in a state of feverish excitement seldom before known in state or political circles. What the outcome of Taft's action is to be is only surmised by a few of the leading insurgent republicans, who insist that Pinchot's dismissal places Taft squarely before the public as opposed to the policies of Roosevelt in favor of Ballinger. and therefore as friendly to the corporations opposed by the chief forester.