New-York tribune., 1880-10-27
FORCED TO RESIGN UNDER CHARGES

/ ltSitt HIS appointment
FORCED TO RESIGN UNDER CHARGES.
! THE UNPLEASANT CIRCUMSTANCES UNDER WHICH
Mr. GRACE CEASED To b. Az AGENT OF THE
NEw-YORK BOARD OF USDERwBIERs-HOw
The COMPANIES SUFFERED WHILE HE HELD
The AGENCY AT CALLAO.
William II. Grace the Democratic candidate for
Mayor OF New-Y0rk held the position of agent for
the Board of Marine Underwriters of this city at
Caliao Peru from 1865 to 1871. Grave charges
we're made against hun; and tie evidence obtained
by an agent sent ont by the underwriters was re-
ferred to the Committee on Agencies. which con-
sisted of Daniel Drake Smith president Of the Com
mcrciGl Mutual Marine Insurance Company, and
since then President of the Board of Underwriters,
John II. Lyell president OF the New FORK Mutual
Marine Insurance Company. and now vce-presi-
dent of tho Board of Underwriters, and John S.
Tappen yioe-president of the Union Mutual Ma
rine Insurance Company. After examining the
evidence this committee reported that the
charges wcrs substantIatc1. 4 special meet
ing OF the Board was called on October >. 1871,
TO receive the committees report. when II was re-
solved that the authority of william i. Grace TO
act a. agent of the Board a; Calao be revoked and
that he be requested toreturn his commission forth
with. Alr. Graces career as agcut thus dis
gracefully terminated.
The history Of Mr.. Grace's agency operations at
Calla0isa curious and interesting one Though
during the years in wlicA he held the agency he
spent much tine in New-York, h. was responsible
for the irregularities which took place while he was
the representative Of the uuderwrior, at Calao.
Statements, not altogether complimentary to Mr..
Grace, have been floating about III commercial and
insurance circles for years in regard 20 the manner
in which he accumulated his fortune
a. member of the house OF Bryce. Grace
& Co.. in CallaO. These statements were generally
to the effect that Mr Grace began lis career a
runner for the IOuse IN Cailao, and that he oX-
hlblted such aptitude in making money for bis en-
ployers by his shrcwd bTgain, that he was .ven
an interest in the firm. HIS successful speculati0ns
arc said to have gwen hun the controlling III
terest in the house of which h. las now been the
head TOR mary years. Henry Mcigcs. who, as Con-
trollcr OF the City of san Francisco, issued about
81 600 600 of fraudulent bonds who detrauded
bis creditors IN San Francisco and IN this
city, aud who emb, 2Zled q large sum of
money and fed to Peru, where nc became well
known rs u railroad contract r, secured great
influence with the Peruvian Government He there
became acquainted with Mr.. Grace. and they are
said to have had close business relations
Through business and ecclesiast cal connections
and the AID of Mr.. MeIggs Mr. Grace is understood
TO have received from the Peruvian Government a
valuable control IN the guauo and nitrate trade This
influence OF power great that vessels gong 10
Perm for cargocs of guanO nitrate almost AT
his mercy. Captain GeOrge ID. Allen, who has COM
manded vessels in that trade, says that llr. Grace
had il in bis power to give vessel = good cargo or
had cargo and that il was almost impossible TO do
any business at CallaO without uansacting
it with bis house. This power gave
Mr. Grace very strong Influence with
ship masters, which greauy increased in
the ease of American vessels by his position rs
agent of the marine insurance companies. IL has
long been reported that Mr. Grace used his power
as agent Of the underwriters ami ms influence with
the Peruvian Government to make money ont of
vessel-owners and the .nsuraac' companies in snch
manner that he rapidly accumulated tho large for
tune which has since gwen HIM Prominence in this
city. these statements. coming from different
sources have been investigated by TRIBUNE report
els with results given herewith.
Ii was Mr.. Graces business, rs agent Of the insun
ancc companies, to protect their Interests IN every
way; to see that vessels leaving that port, which
were insured by any of these companies, were sea-
worthy, wei provlsoned, and able to reach ther
norris of destination, TO protect the companies
against the imposition of unjust D0itOmry bonds
respondeatid and TO see that masicr, did not pay
an undue rate If interest when forced 20 issue
gucn bonds. HOW W-u NJ. bIdcC carried
cut bis contract with the insurance clm.
nanies. and bow faithfully he discharged the trust
ccnfded to him. the Investigations Of the insurance
c,nuanies show. II 3 appointmcn. rs agent IN
Cailao IN 1865 SAID to have ben unfortunate for
the insui ance companies from the first. They began
10 lose money at that port aud their losses
great that there suspicious that something vas
wrong. Finally the losses OF the Ncw-lork COM
ua,Iies on business IN aud out OF Cai0 ia one year
were stated by them to reach the cnormou, sum of
half million dollars. This was aside from the
losses of marine insurance con panits of
other cities aud foreign countries. About
the same time il was reported that
Mr Grace had added to lis accImu!ations in tho
same year. as hc share OF his srecuatons etc., at
Callao. a SUN almost as large ~ TIA, lost by the
New-York insurance companies.
SENDING A CONDEdNED SHIP TO SLA.
The Biatd of Underwriters resolved to send au
AGENT to Callao 10 investigate certain transactions
~ that port Before the agent started. however.
letter was received from Antonio :. de ia HIza.
Admiral IN the Peruvian Navy, at Ca.iao, nom
wltcl the following IS au extract:
Ship Mary which gave class oaton last year. saleo
10, Europe, has been lost Intentionally; which you
wn see toy the important document Hpci co q
lac vessel AMI cargo Rs irci IA York aud Boa
tJu, 4hd should bc Investigated II oItc D, Item
he following letters were received about tD
same time:
PAlTA. Jan. Is. 1870
send nclo'ed an account o. me loss OF thc suiv
CVatlaaed oa L,gkts IGgs'