Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-06-07


attendant prosperity sbove everything elsss
Tor iong-eontinued strife means utter rum.
Interested in Peace.
The Grace people are liable. to suffer par
ccularly BY this war, having enormous IN
terests IN various parts of South America,
az q which are more or less jeopsranso;
Besides their banking and commission
houses in Lima, Callao, Valparaiso and
Santiago, and agencies in every other Inn,
portant city on the continent, the celebrated
"Grace-Donoughmore railroad contract OF
Peru is gigantic scheme, involving many
millions of dollars; and when Chile untA
now the most prosperous of South Amer
loan countries) is in trouble, Peru suners
In consequence, because her commerce oe-
Pends largely upon her southern nelgnpor,
although the two Republics, 50 LATELY az
war with one another, are not at heart tne
most affectionate friends.
10 understand more clearly why Chlie,e
financial status so nearly concerns Peru, "
must be remembered that, under the treaty
OF Ancon, which followed the war between
the two countries (ended in 1889 large
extent of Peruvian territory was ceded 70
Chile until the year 1893 when 1t is to pc
determined by popular vote whether the
debatable land shall revert to Peru or re-
main permanently In Chile's possession,
the latter country being pledged to pay to
Peru In the meantime 80 per cent OF the
profit derived from the stolen guano beds
It may be limited, en- passant, that if Chile
fears minority on her side when It comes
to the test two years hence, she will doubt
less import votes enough to control an cleo
tion Of such vital importance to her ex-
chequer. She will have the advantage OF
the Government machine" already estab-
hshed on the spot, and can afford to spend
millions Of pesos rather than lose the prov
ince that yields nearly all the saltpeter
and sodine used in the world. Poor Peru
has no surplus cash to squander.
The Grace-Donoughmote Contract
Although depression from the topic in
hand, perhaps q few words concerning that
famous Grace -Donoughmore contract may
not be amiss, since it is by all odds the
greatest Anglo-American enterprise ever
undertaken on this continent. The princ1-
pals are the well-known New York banker.
Mr.. w. R. Grace, and Lord Donoughmore,
Of London, backed by powerful syndicate,
and through their means Peru is afforded an
opportunity to emerge from the period Of
deadly depression that followed her four
years conflict with Chile, and her subse-
quent civil war. She rids herself Of the
huge national debt which those wars oc-
casioned, amounting to some S26O, ,0O0, 600,
by ceding all her Government railways to
the holders Of the bonds, together with all
the guano deposits that were originally
pledged as security for the loan, but had
been seized by Chile.
The terms of the contract are briefly as
follows: The holders of the country's bonds
surrender them for cancellation (they were
worth barely cents On the 81, pay down
e50, 900, and 100000 afterward, in pay
ments of SO, 1000 per month; and in con-
sideration thereof the bondholders receive
all the Government railroads of Peru on a
lease of 66 years.
What Chile Agreed to Do.
Chile has an important part in It also.
She agreed to liquidate her share of the ac-
count by yielding to said bondhelders all
the guano on four islands; and for eight
years that of Tarapoca also, reserving only
what is needed for her own agriculture, but
none for export; and at the end of eight
years Tarapoca to revert to Chile, She also
promised to pay per cent of the net profit
on all the guano she had exported during
the eight years since she seized it, up to the
date of the contract; and to pay 30 per cent
of all future sales until the account is
squared Chile estimates this at R2, 250, 900
-apd how far the present revolution will
interfere With this arrangement remains to be
seen.
The Grace Donoughmore people are given
the right to build new railroads, but are
bogpd. .te cemp,ste all the old enes, and are
promised liberal e6Eeessions for s7efyy Eaile
of accomplished work, besides being allowed
to bring in oil their materials free of duty.
This gives them almost absolute control of
Peru's commerce. and much of Bolfvia's,
their only competitors in the line of carriers
being the backs of a few Indians, mules and
namas. The United States is directly inter-
ested in all this, because she will doubtless
continue to furnish considerable portion of
Peru's railway and mining appliances, which
have been estimated to amount to not less
than $40, 200, 900 per annum.
What Comcs From the United States.
The late Henry Meiggs, from California,
had contracts with the Peruvian Govern
ment for building seven railways, which
amounted to S133,0O0,000 and he lived to
see five of them completed. The rolling
stock in them all came from the United
States. The cars (worth 81, 500 each when
delivered), were furnished by Messrs Gill
bert, Bush & Co., of Troy, N. Y; the loco
terson, N. j., and cost, when arrived, from
S25, 900 to $50, 900 each. The ties came from
Oregon; the rails from England; the
diamond drills from Chicago, worked by
Rand & Warnings compressor; and the
stationary machinery from Leeds The la
borers were Cholos, Chilians and Chinese,
The shovels they used were Ames, and
even their food and fuel had to be mostly
imported The shops and station houses
generally are constructed of English gal
vanized iron, and the iron water tanks are
"Pills' patent"
Peruvians seem to have mania for rail-
bodybuilding, for that impoverished coun-
try has already invested in railways trife
over S14O, ,OOO, ,00O-a very large sum for only
5000, 900 of people; about S47 for every
man, woman and baby in the Republic,
reckoning her population according to the
last census, which counted only the males
with reference to poll-tax and guessed at
the rest.
On this western coast of South America
the business interests of the New York
Graees are mainly looked after by three
noted brothers who are nephews of Mr..
William R. Grace. The elder Of the trio,
Mr. Edward Eyre-who is now in the
United States-has charge of the splendid
house in Lima. Nr. Jack Eyre superin-
tends the branch at Callao; while Mr.. Will
lam Eyre attends affairs in Valparaiso and
Santiago FANNIE B. WARD.
nENrTNC e0Ap RURRIEa