The Birmingham age-herald., 1916-04-19
Heavily Interested in Devel- Opment of Cotton Plan-
 tatiOns in Peru
FEW REALIZING
 VALUE OF CANAL
Recent Issue of Bonds Shows Spirit of Cooperation Now Being Man. ifested in Financial
 Circles
By HOLLAND

New York, April 1S.-(Special) )-Such was the case with which an issue of bonds which represented certain financing tor William R. Grace & Co.,, or a substl- diary of that corporation, was marketed some two weeks ago that the incident has been referred to as reflecting the dispo- sition of leaders in business, industry and commerce to perfect cooperation or CO., ordination of our activities so that we may be the better prepared to face the conditions, whatever they may be, which follow the termination of the European war.
 Coordination and cooperation are con cretely illustrated by the recent ex- pansion, commercially, of the house or William R. Grace & O. Since about lSSV, this mercantile house has been recognized in the United States and in Europe as the leading American interest occupied with South American commerce. The business was until his death directed un- der the experienced eye of William R. Grace. He took it up very actively after he retired from his second term as mayor of New York. He was regarded as es- pecially qualified for undertaking com merce on a large scale with South Amer ica, or at least with the western coast of South America.
 His early business life was in Peru. Expansion of his business interests led to partial control at least of the nitrate deposits of Chile With his brother Michael P. Grace, he organized syndi- cate which, in 1S90 undertook to relieve Peru from her financial endorsements No man in the United States knew bet ter than MT. Grace what the natural re- sources of Peru, and especially that part of the republic which lies east of the Andes mountains, are.
 When Sir William Crookes, England's s great scientific authority, made the alarming statement about 20 years ago. that the wheat supply of the world was in danger of being insufficient to feed the increasing population, MT. Grace called attention to the enormous reaches of land
 n eastern Peru which were. he said, es- pecially adapted to the cultivation of wheat both with respect to the qualities of the soil and also climatic conditions All that was needed were transportation
 nd immigration. and if there were real 'anser of shortage in the annual har- vests of wheat MT, Grace was of the opin- .on that speedily transportation and i'm migration would make these wheat lands of eastern Peru available.
 SOUTH AMERICAN COTTON
 few years before Mr. Grace's death in 1901, he predicted that in time there would be great development of the cot ton manufacturing industry on the west coast of South America, and that this would be reflected in great export or raw cotton from the United States to the west coast of South America.
 He established the fleet of steamers which by way of the Strait of Magellan carried on commerce between the United States and the west coast of South Amer ica. Realizing what the opportunities for enlarged commerce were if steamers were able to make the voyage in half the time it took to complete trip from the United States to Valparaiso, he earnestly advocated the construction of a canal, at first being inclined to favor the Mica ragua route.
 His successors, and especially his son. Joseph P Grace. have maintained and in- creased the prestige of the house. Now this house, in co-ordination and co-opera- tion with the American International cor ation-whose resources reflect the Ma tional City bank and the conspicuous house of Stone & Webster--is preparing not only to maintain, but greatly to in- crease, our commerce with South Amer ica. The arrangement represents large unit, so to speak, of which the com ponent parts are, first, William R. Grace & Co.,, who are of unsurpassed authority respecting commercial opportunities in South America and are interested also in a considerable investment in cotton man. ufacturing in Peru. This house will be able thoroughly to inform those who are in association with it of the needs and opportunities of South America respect ing commerce with the United States.
 The second factor in this suit is the American International corporation. This factor makes it possible thoroughly well to finance any reasonable proposition in- volving increase of our trade with South America. The executive chief of this cor poration, MT. Stone, is peculiarly quan- fled for service of this kind.
 In the next place, the absorption of the old Pacific Mail company and of it's steamships represents the third factor in this unit. The magnitude of the com merce contemplated by those who in CO., operation are represented by this unit is suggested by the taking over of the Pacific Mail ships, at least those which were not sold to another company, and, in fqact, the absorption of the company itself, together with the purchase of three