New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-07-20
THE CONDITION OF PERU.
WHAT IS NEEDED TO DEVELOP TIE CoUN-
TRY'S RESOURCES.
TALK WITH UNITED STATES MINISTER HICKS
THE GRACE cOyTRACT-woRK AT PRES
vNT ON FoOT-BENEFITs OF LINE
OF AMERICAN STEAMERS.

,csi,.or e. por,, has becn in New-York during
49, Ia. tor, do,.e e,ovinc at the Everett House
tIo orr;vod ON the steamship Colon on July Ia
Mr.. Hicks is not tired of Lima ana the IefuVlahS
already. On the contrary, he is Enthusiastic III
his nraisc Of the hospitable polite, kind-hcnr'ed
peoplc and the charming women OF Peru, ana says
,hot III, s,o,. in tbe beautiful city of Lima has
NO., ",.o,,, rloosont. indeed" But Mr.. Hicks
has come back to his native land only FOR TWO
months visit He will 90 TO Washington from
New-York. From Washington he Will traVel 10
his home in Wisconsin, and viii return TO fcru
bv way of San Francisco
Mr. Hicks takes keen interest in Peruvian
affairs lie has become familiar with the poitichl
s,tuation as well rs the commercial outlook OF thc
country. lie gave some Of his views on both 10
n Tribune reporter the other day. Mr. HICKS lclt
Perm on June %. The Presidential election, he
said, had been held In April, but it was not yet
decided
THE Presidential election In Peru, Mr.. HICKS
explained, is conducted in manner altogether
different from ours. The franchise is used by u
few people, and they can vote by proxy. II
man turns in his voting papers, which really form
a certificate of citizenship, TO a proxy, that en-
titles the proxy TO cast the ballot. Often the
secretary 81 voters political club or the mana
ger of his party acts as proxy and deposits q
whole bunch of votes at once. The election lasted
eight days 1t was entirely peaceful Congress
is the Judge of the election and Congress does not
meet until the 2sth of July, so the result will
not be finally settled until then. Colonel Morales
Bermudez, the Government candidate undoubtedly
was elected and will be inauCuratcd. President
Caceres did not interfere with tic election. The
favor of the Administration, of course, went in
favor of Morales Bermudez"
THE GRACE CONTRACT.
Among the factors that may he counted on 70
restore prosperity to poverty-Strcken Peru and
raise her from her commercial Slough of De
spond is what is known as the Grace Contract
In one Of the letters sent TO The Tribune from
Peru by o staff correspondent in the spring, the
interesting diplomatic history ont of which The
Grace Contract sprang was fully explained.
Michael Grace, acting attorney for the English
bondholders who held mortgages on the nitrate
beds and guano deposits of Tarapaca for money
advanced in payment of the unfinished railways
Of Peru set about negotiating compromise be-
tween Peru and its creditors after Peru had tried
to Shift the responsibility for the Indebtedness TO
Chill, when Chill took possession of Tarapaca and
its mortgaged resources as result of the guanO
war Mr. Grace and his associates managed 10
carry through the Peruvian Congress contract
By which provision was made for eXtinguiShing
the entire public debt and the transfer of all the
unfinished State railways 10 the bondholGers, with
the stipulation that tic bondholdcrs should cX-
tend and complete the roads.
What is now the precise state Of Tho Grace
Contract" asked the reporter.
THE contract is closed" replied Mr.. Hicks.
Money has been subscribed in London and com
pany formed TO carry Oh the railroad WorH, ana
it has begun operations on the NeTugas Bridge.
That is bridge which was the finest work on
the Oroya Railway, built by Henry MeggS. II
was carried away by cloudburst in 1889.
"The contract on the iron work of that bridge,
continued Mr. Hicks, has been let to people in
New-York, and part of the material has already
been shipped. That, however, is the only work
that has actually been contracted for so far.
Nothing has been done yet about the southern
railways The syndicate has IN English engineer
in general charge. who is examining the Govern
ment guano lands and the railroads which will
come to the syndicate under the contract. They
have made an agreement with John b. Thorndyke,
one OF the railroad men who served under Henry
Meiprs and who, after Mr. Meiggs's death, owned
the railroad from Mollcndo to Arcquipa. lie is a
practical railroad man. and a man of wonderful
ability and energy. Mr.. Thorndyke is in charge
there, and is making sub-contracts. | think the
next road after the Oroya 10 be extended Will he
n road from the terminus Of the present road 70
Puro. which runs along the shore of Lake 1iticaca
10 its outlet The Government has notified the
syndicate that they must finish that road within
the legal time"
"No other operations, then, have been con-
ducted?"
mo. think not. They are waiting apparently
TO make the financial arrangements among them.
I understand that the stock has all been sub
scribed for, but probably the money has not all
been paid in"
as it your opinion, Mr.. Hicks that this com
promise, this Grace Contract, is going TO benefit
Peru much?"
MUCH MONEY TO BE EXPENDED.
"Yes, I think so. The syndicate contracts to
extend all those unfinished railroads, and that
means the expenditure of very large amount
Of money. | have seen it estimated al as high
as from thirty TO sixty millions Of dollars and that
sum spent in Peru for labor and construction
means good times. Every one in Peru Is very
hopeful and confident Of a great improvement in
the condition of the country. Peru is impoverished
and all business operations have been practically
at standStil for the last seven years
Do you think American trade is being benefited
BY that contract? Will material be bought here ?7
That | don't know, but, as the syndicate is an
English one, it is natural to suppose that they viii
buy their material in England. OF course the
general Improvement of Peru would be beneficial
to America"
DO You think there is any opportunity for
The development of American trade in Peru ?"
yes but there are great many difficulties
In the way. Lack of steam communication, lack
OF banking facilities lack of knowledge in the
United States of what is required by that trade
and lack OF representatives of American houses
on the spot are the chief obstacles The proposed
international bank, with branches all through
South America, would help American trade very
much. 1t would furnish American exchange for
one thing
FOR A LINE OF AMERICAN STEAMERS
If line of American steamers, under the shin
ping bills that have passed the Senate were
started between San Francisco and VALPARAISO
I.IT.