Grace, William R.

▪ American businessman

in full  William Russell Grace  

born May 10, 1832, Queenstown [now Cobh], County Cork, Ire.

died March 21, 1904, New York, N.Y., U.S.

      American shipowner and founder of W.R. Grace & Co. (W.R. Grace & Co.), a corporation that was for many years a dominant influence on the economy of South America's west coast and, under the management of his heirs, became a multibillion-dollar conglomerate in the late 20th century.

      Grace ran away to New York at the age of 14 but later returned to Ireland. In 1850 he visited Callao, Peru, where he entered the shipping house of Bryce & Co. as a clerk, becoming a partner two years later. Early success came to him when he positioned one of the firm's supply ships off the Peruvian coast, thereby permitting cargo fleets to purchase supplies without sending their workers ashore. In 1854 the firm became Bryce, Grace & Co. and within a few years controlled much of the shipping along the coasts of Peru and Chile. His health declining, Grace turned the management of the firm over to his brother and left Peru in 1865.

      In 1868 he organized the shipping firm of W.R. Grace & Co. in New York, serving ports on three continents and in the process winning a substantial portion of the U.S.–South American trade. Grace was the main arms supplier to Peru before and during its unsuccessful war with Chile in 1879–83, and after the war he assumed the country's staggering war debt. In return, his company received huge concessions from Peru in the form of silver mines, oil and mineral deposits, and guano deposits. His business exploits in the country earned him the moniker “Pirate of Peru.” Grace also invested extensively in commodities and real estate in Peru and Chile and had numerous other business interests both in the United States and abroad. In 1892 he established the first direct steamship service between New York and Peru.

      Grace was a major contributor to the Irish famine relief effort in 1880. He became interested in politics and was twice elected mayor of New York, in 1880 and 1884. His advocacy of a shipping canal through Central America met with success with the start of American-led construction of the Panama Canal in 1904.

* * *