New-York tribune., 1880-10-29
WIJIIAMR. GRACE'S RECORD.
,,,,prurR EVIDENCE AGAINST HIM.

:. T,PPAN. f.ho
rnr,bcr details have been obtained Of the
,,.,., ~ which the insurance companies SUI
targd while William Il. Grace hc!d llie
';.;o, Of their agent at Callao, Pe'n MI
cr,o.', LAWYER has written dehih oi inc
-, ,.l.ch disproves nothing JOhn :.
T",,1an who was member of the Com
', ON AGENCIES of the New ! orh
naarI of Tn 'orwrters which rtIorteu
n.st tbe charscs against NJ. Grace we're sns-
to;ncd. the result being the dismissal OF Mr'
Grace rs agent, confirms The statements tl"'
have been uuh:ished in THE TRIBUNE.
TIE CAIIsO SYSTEM OF WEECklNG'
INTERESTING FACTS CONCEETNG InE NfRLus AM
ALAsKA-ADDiuoNAL EVIDENCE N l"H O'eh
OF THE M,RY-QCFS SrioNABLE ikANsAo'io>'
or MIR GvACa's FIRM
The proof Of the accusations against W. IL trace
IN regard to the manner in winch he discharged n's
dutje, ~ agent of che Board OF UnderwrlNrs III
Coj,ao pcrn-a position from which he was finally
removed under chargcs-is la from pchs CA
tanst.l II does not consist Of oyidoca Ill one case
alone bat of that in number G: cases HcweVer
had was the case Of t. e ship Mary or the Washing
ton Lihbcv. they were only instances OF system
by which the insurance companies suffered. Inc
cvi.,nce Of the Peruvian Government by Its pub
lshed lecrecs of it judicial officers of the United
States Consul at Callao Of the British Consul
who still in the service of his Government, oi tie
s,eciaI agents of the Beard OF Underwriters sent to
Callao TO make Investigations Of q, u. Jones
prominent merchant III Caliap and OF other per
sons All goes to show that ". K. Grace was, 10 say
The least delinquent in his duties and that the
house of which nc was the head was engaged lh
Transactions Of q more than questionable nature
In Arril 1871 United states Nicc-Consul Law
,vro,e that W. X. Grace bad arrived from New-lork
and immediately set the ball rolling. but before
his arrival there seemed to have been activity
enough gng from the number OF ShiaS which re-
turned 10 port in distress. and for which the hsur
auce companies represented by hr. GTace were
oriicod to pay There were various ways of max
ing money from the Insurance companies hut the
one most in favor was 70 condemn { vessel, no
matter how soUnd aud Scaworthy, have II sofa at
auction. and bought in at mere nominal price
and of course, compel the insurance companies to
nav the difference. Then the vessel would bc re-
p.ired" NJ an alleged heavy expense and the
means to pay for this would be furnished by a."
house of Bryce Grace X Co., who would take
bo,tomry OF respondcutia bond as security
NJ an enormous rate of interest. When
vessel was condemucd more money
WAS made I'm Callao and more lost by the insurance.
companies In EcW-NoIH.
II was not necessary, however, 10 carry out these
eebernes that a vessel should be Condemned and
sold In the case OF the Nereys, for instance which
was partly owned by w. II. Grace
himself. the vcsse was not sold, bet
the United States Wee Consul says
that 1t WIS barely saved from condemnation,
Mr.. Grace hmself favorng that course The YES
sci which was a good aid sound one, the Vcc-Con-
a "A q
ultimately came out Of the insurance companies.
and toe money was loaned by MI. GIagcs caaIlct,
wh. took a bJnd on Nj Grace's vessel for security.
The following .ettcr rom prom "ent merchant 'n
N"-"'' CALLAO. August y, 1871.
Ny DEAR SIR: Since JGly - .caic"y any nnE 81 M
tere, to va the good Iohs yu TelfsrHt bH' tran
splea Ont ntenI giving You more @ Iul a' 'c'u't =" %
tie 4tors incn'io'et u n former Dotcs' a. d" 'hat
u..reut w,s i litt,e pushed Tor time.
ave 9eon conVersi4- LIS IoilinS @ 'n =, rG
IN NY last a. being owned by G,sce Co. Cap
tar heroert ay$ pi he = c''y d5 ny, iH a'G e9'Ie
Co1 lu.enj 90 condemn me rS>a ,rhchcr ne tt'S oT
~. 100 1 .,ei - III yrrs.ut InGmrnt "s.
o. he neSt vessel. tie port. lie advises me 10 Try
and money IN ngh to ouy .cr; that S'e WI "eea
very ute icpa D., ior u. d. u 90 90 Zoo iI9 hc
olicui . and would be ci tp 81 $1,000 re. DO "ik
f.r.st. or they VII DE- uuacrcilu ulb eWiudi"d N
~ l'ls MAKES one inch of "atei il seVenty-t"o N-J
I.oi You N my last o. TIE AIasta's misfortune and
hoped that thit would nav Drti me worst OF ~ ~
..uuattly ASSISTED iu Dis troubles oy Ec%ua
J.. her, IN tnc steam tus Lt0P"d d" ParKe- wUo no"
caim> To h ~, save iqe snp ana TO ne pms ~
ca!m - GG6 G6 sOs, beng AL th!ri 81 lhr 'st-
mli.d Va ur vi {. vessel and her cafs On ia" cap
fefu 10 pay, Parker thre1 eucd 20 ke la pro
ce,dlns~, Nnlch ent,ucd poor old Itisglus aviuy.
II IL "a y says he fuOrd you, aud t3 al Won dId
v.e ma ,our tents money Eyi.c.-iy nei h. h.
10. Grace su-pec,s anything a. vet = /" lu' g. tOn-
sd + u.r f.itn ul.y y6urs. OLIVER G. JCHEs.
III answer TO ,he warning received by the under
writer. a, to the contemplated proceedings Ia the
ca.e Of the Ncreus, the Board, which had already
begun to suspect their agent. Mr. Grace, forwarded
instructions by telegraph and mail to another pe,-
son to look out foY Their interests. 1t is probably
due 10 tins fact that the Ncrcus was not condemned.
IL the case Of tie Alaska the vane OF Mr. Grace's
appointment as agent OF the underwriters was clearly
shown Tuis was Of the vessels tuat returned ID
be- condemned but II got aground N the harbor and
became almost total loss to he underwriters be
cause Of the extoruonate charges made in getting
II fl. The bu,iue-s OF caring for thc vessel WAS
placed 10 the hands Of Oliver g. Jones, but it was
taken from hIm by ordcrot W K. Grace agent of the
underwuters as VIII beseen by thefollOwIng letter:
CALLAo, Julv p, 1s7l.
Ny DEAR SIR: A. We GnuciV0. cd ui ireud Higgins
bavug Ueen al sea ouS twenty DAYS. He repOr tha'
vee made "a much water ~ to r.nfer it dangerous Il
ait mp. 10 continue his voyage round the Ctpe.
higgins placed The yos .e Va NV haud,. aud wi,
show the BOsrd OF Uuderwuiero NV vc7>e. iu -ucG
clicumsarces can handled placed 20 prop,r
l-ru.ps you VIII have opportunity o. seeiug Ser a"
counts aitrr the arr is w,un1 up and compare .hen
with Ia , of auy Otncr vessel suiiar Cicuu ,auc,s
mean OF COURSE ludep, udent Of The expenses ur"rr
N getfiug her afiJaL Grace. immediate
LeaIug 81 ihe ARRIVAL The c..e cent or Ls run
Hers OF Will orders man uu DO4fu and i.dt
otuer person t-rfvred win her. IL also wrote ~ Tie
cant ain t- NJ h d ia Il ne tAc GENT If the Cldri
wIltfr- ana tIat ac must take SIC wItnO.t pre-
vi ,u-ly csu-ut!u. hlm. Believe 10 ever
yours OLIVER o. JoHks
T. 81 had almost forgotten 10 say thHt by very
sIong. cOlucd nee m. Brush snip Jam b., RO @ah
Ia itgt Al lie "a e.
al Cal 40 bUrc y 90 the IA u.S dud
IN dsuess on tne -amc day, making grcd
zeal # wafer, hor.ing a wiDGmI pump cOhstdh ~
ROIng. o. u -
MORE ABOUT TIE MARY.
William Lewis before referred TO- bought the
MARY the rotten hulk tnat was sent 10 sea aud sank
al cr having been insured for $4,000. and Michael
/ Grace. William K. GIace's brother aud partner,
was cuntv on toe not which LOWS gave
when ne bouobt tine vessel One of the policies of
IL --...----- L. n....1nt If &In 900 yYna