The Birmingham age-herald., 1921-07-21
By HOLLAND

NeW ork, July zO.-(Spec1ai)
 Some years ago Joseph P. Grace, who
 succeeded his father, William R
 Grace, as the head of the interna-
 tional corporation which was organ
 ized by Mayor Grace, spent two or
 three months in Bolivia. He had in
 mind the gaining of information re-
 specting Bolivian resources and the
 possibility of establishing large
 trade between that country and the
 United States. When Mir. Grace re-
 turned to New York he said that the
 natural resources of Bolivia were all
 most inconceivaDIiy great Besides
 her silver and copper resources there
 were evidences of an abundant sup
 ply of petroleum in southeastern Be-
 livia. The resources of this interior
 republic of South America could not
 be made of much avail, MT. Grace
 said, unless there were adequate rail-
 road facilities. Bolivia was at that
 time making an attempt which after
 wards was successful to extend q
 railroad from the heart of the re-
 public to the Pacific coast But in order to reach her rich silver mines
 and especially to develop the petro- leum resources of southeastern Bo livia it would be necessary to build
 a railroad which would connect the railroad system of Bolivia with the great system which Argentina has built
 In this opinion MT. Grace was later fortified by Horace G. Knowles who was for four years American persuaded that American capital could be found to construct railway lines in Bolivia, but it would be nec- essary to wait until after the Euro l,pean war was ended.
 Percival Farquahr, who undertool:
 the exploitation of some of Bolivia s
 resources and who had also in mind
 the petroleum supply in southeastern
 Bolivia, visited Paris few months before the outbreak of the war He hoped to make successful negotia- tions with French bankers so that railroad construction and mine devel- opment could be made possible, but the bankers of Paris shook their heads, saying that it was no time to undertake new financing because in
 all probability France would speed fly find it necessary to finance her self because the danger of war with Germany was iminent.
 Bolivia has waited until the time
 was more favorable for entering into negotiations fer the construction of railroad which would connect her system with that of Argentina. Bo- livia did not go to London n order to secure successful financing of this proposition. Her representatives came to New York and after negotia- tions which lasted some weeks has executed contract with an Ameri- can company which on the one hand na of ahnnt x a 000.- 900, and on the other hand the con ! struction of a railroad nearly 150 miles in length.
 This railroad will open up Bolivia | for development in the southern part of the republic and will give it a terminal on the Atlantic and Pacific, made possible by agreement with Chile and Peru and also a terminal upon the Atlantic at Buenos Aires. What It Means to Bolivia | What the construction of this rail road means to Bolivia has already been forecast by MT. Grace and MT. 1 Knowles It may be necessary to build branches so as to make the ] rich silver mines of Bolivia availa- | ble. Probably 1t will be found ex- pedient to build pipe line from convenient point upon this railroad | to the very rich oil fields of south
 
 ports these fields to be as promising as any which have been developed
 in Mexico or in California. They ape hemmed in, however, by mountains. Some of these mountains are almost | insurmountable at least for railways. | But it woud not be difficult to build
 pipe line which would connect these | fields with this new railroad.
 | The exploitation of Bolivias S oil | x t1xr f tn hAt xx-a and will enable her to increase her commerce, especially with the United 1 States If they can be made to yield then it will be demonstrated that | South America is to take leading part in furnishing the supply of petroleum, of which the world will stand in need. The very rich oil fields of Venezuela and Columbia, as | well as those of Peru, will in all petroleum which is to hereafter b.; | secured from the Bolivian fields.
 south America's Railroad system
 Within the next five years, poss bly, ten, the railroad systems of South America will compare, relatively speaking, with those of the United States. It is now regarded as inevlt able that the remaining links in the international railway will be com
 pleted. probably by the use Of Amer i can capital When they are com.
 pleted, it will be possible to take q Pullman car at New York or Chicago 4 and to be carried in 1t southerlS through Mexico and Central Amer T ica into South America and the jour
 ney's end would be at Buenos Aire: or Valparaiso.
 Years ago when some agitation i' favor of the construction of an in , Iternational railway of this kind wa: , in progress, the proposition wa
 brought to the attention of Ja. Gould. He spoke of it as impractica : ble, believing that not enough traf