The Honourable William Russell Grace
Mayor of New York
- William Grace was born in Ballylinan on 10th May, 1832, the son of James
Grace by his wife Ellen Russell. The Graces were an old Catholic family that
traced their ancestory to the first Normans to come to Ireland. They became
Palatine Barons of Courtown in Co. Kilkenny. A Junior branch of the Barons
of Courtown settled in Shanganah, now Gracefield, Co. Laois. Educated
locally, his boyhood ambition was to gain a commission in the Royal Navy.
His father would not allow him to join it so he ran away to sea and spent
two years roaming round the world.
His father bought him an interest in a firm of ship chandlers in
Liverpool. Bored with life in that city he went to Callao in Peru, where
his father helped to have him placed in a similar firm. His brother
Michael joined him and the firm Bryceard Co. became Bryce Grace & Co.
and finally Grace Brothers Ltd. Their fortunes increased and William was
forced tn account of his health to leave Peru and he left Michael in
charge.
On September 11th, 1895 he married Lilly Gilchrist, the daughter of a
ship builder. He returned home to Ireland with his bride and later went
on a grand tour of Europe.
In 1865 he settled in New York and founded W.R. Grace and Co. to
serve as a front for Grace Brothers and Co. of Callao, Peru. When Peru
built its railway system, Grace Brothers secured practically all
contracts for supplying the builders of the railway with iron, timber,
food, etc.
In 1875 William became adviser to the Government of Peru and handled
all the business of arming the equipping the Peruvian Army. In 1879 he
supplied the Munitions and Battle Ships during the ill-fated war with
Chile. Peru lost the war and Grace resigned as adviser to the
Government. Peru was left owing 250,000,000 dollars to English
Bondholders. With another Irish man The Hon. John Luke Heley-Hutchinson,
5th Earl of Donaghmore (whose son Richard, 6th Earl of Donaghmore
married Elaina Maria, second daughter of Michael Grace), they bought up
all the English and American Bonds and with The Grace Donaghmore
Contract of 1890, they secured a mortgage of the Republic of Peru,
taking over the national debt and receiving many concessions in return.
The Peruvian Corporation was formed to manage the concessions directed
by the Earl of Donaghmore, but Grace was the power behind it. In return,
the Company received outright the valuable silver mines of Cerro de
Pasco, the entire output of the guano deposits, five million acres of
land containing valuable oil and mineral deposits and the lease of two
railways for sixty-six years and to hold in perpetuity a road with
generous grants for constructing it. In 1895 the Grace Companies united
under an American Charter and became William R. Grace & Co. The firm
opened offices in all Latin American countries and went into importing
and exporting and establishing world contracts. Graces exploits in Peru
earned him the nick name of The Pirate of Peru.
In Chile his company developed the Nitrate Properties, built cotton
and sugar mills and then set up Traction, Light and Power Companies. He
bought over the New York and Pacific Steamship Co. that became the Grace
Steamship Co. In 1880 he was elected first Catholic Mayor of New York.
Opposing the famous Tammany Hall, he conducted a reform administration
attacking police scandals and patronage and organised vice, reducing the
tax rate and breaking up the Louisana Lottery. Defeated the following
year he was re-elected in 1884 on an Independent ticket but lost again
the following year.
In 1897 he founded the Grace Institute in order to give young girls a
practical education in stenography, dressmaking and the domestic arts.
He died 21st March, 1904 and was survived by his wife, two sons and
three daughters.
- Source: "Laois Association Yearbook" 1981
