W.R. Grace, the Businessman Mayor

Written by William Bryk on . Posted in Miscellaneous, Posts.



New Yorkers
recently chose a self-made billionaire businessman who had never held office
to be the 108th mayor of the City of New York. His major opponent, a politician
apparently without business experience, argued that at least a decade at the
public trough was a requirement for the office. Many commentators apparently
shared this belief, or at least seemed to think
that
a businessman mayor was a new thing. This is the kind of pig-ignorance, as my
grandfather, Kenneth James James Hart, might have said, often found among talking
heads.



Being mayor
was once a lot less work than it is now. City government didn’t do very
much. If the streets are cleaned by herds of pigs, you don’t need sanitation
workers. If the law is enforced by elected sheriffs and ward constables, public
order is not your responsibility. Cholera and riots, then, become acts of fate.
One early 19th-century mayor considered his a record of glorious achievement:
he replaced the fence around City Hall Park. Period. One could tend to business
while dealing with public affairs in one’s spare time.


Once New
Yorkers began electing their mayors, the chief executives tended to be men who
could endure campaigning. As importantly, the elites found politics required
time more profitably invested in their businesses. They abandoned the field,
leaving it to Tammany and other scum who were interested in doing the day-to-day
work of winning elections.


We still
elected businessmen mayors. James Harper, elected in 1843 on the Know-Nothing
ticket (an anti-Catholic, anti-immigrant, pro-slavery party), was a partner
in Harper Brothers, Publishers. Edward Cooper, son of Peter Cooper, the philanthropist,
had inherited his father’s glue factories. William F. Havemeyer, wealthy
sugar merchant, served three terms as mayor, 1845-’46, 1847-’48 and
1873-’74. Seth Low, mayor of Brooklyn before the city’s consolidation
in 1898 and elected mayor of New York in 1901, was also a businessman. These
men inherited money and status. Another was a self-made man. Although his public
service is nearly forgotten, his name is remembered because the company he founded
still bears his name: W.R. Grace.


William
Russell Grace, the 54th and 56th mayor of the City of New York, was born in
Ireland on May 10, 1832. In 1845, when Billy was 13, the Irish potato crop failed
due to blight, and failed again in 1846 and 1847. Between the absence of alternative
foods and the collapse of the rudimentary social welfare system, the consequences
were mass starvation, disease and emigration.


A hidden
consequence was psychological: ambitious young men were revolted by the utter
failure of Irish society. W.R. Grace was among them. At 13, he ran off to sea,
and first entered New York as a merchant seaman. Once ashore, he worked as a
cobbler’s helper, printer’s apprentice and clerk. He found that he
liked business, and after he returned home in 1848, he became a broker. Three
years later, he traveled to South America with his father, who was leading a
colonization scheme involving a Peruvian sugar plantation.


At 22, Billy
became a ship’s chandler in Callao, Peru. Callao was pleasant enough for
a boom town, although its amusements seem to have been limited to women, cockfighting
and racing. W.R. Grace had arrived amidst a kind of goldrush, for the wealth
of the world was being flung at Peru’s feet, all for a unique resource:
guano, dried bird dung. Millions of birds interrupt their annual migrations
by resting on the Guano Islands, off the Peruvian coast. Over time, they left
behind mountains of dried dung. In the 1840s, agricultural science rediscovered
what the Incas had known before Pizarro: guano is an amazingly rich fertilizer.


The political
accident that put the islands in Peruvian waters made Peru the world’s
largest and most accessible source of guano. World demand became a passion and
then madness. Chinese immigrant workers shoveled the guano into wagons, which
were dumped into barges, which lightered the cargo out to hundreds of waiting
ships. These clippers and square-riggers had come around Cape Horn and arrived
in immediate need of naval stores: sails, rope, spars, masts, ship’s blocks,
turpentine, tar, pitch, oakum, nails, kerosene, hard tack, salt pork.


In 1854,
Grace adopted an elemental rule of retailing: go where the customers are. He
equipped a storeship, a floating warehouse, and had it towed to the Guano Islands.
The customers found his store convenient and Grace himself brisk, well mannered
and a fun-loving charmer. New England captains often brought their families
along on their voyages. Grace met Lillius Gilchrest, a captain’s daughter,
aboard her father’s ship; on Sept. 11, 1859, they married. She brought
patience, good humor and courage to an extraordinarily successful marriage.


By 1862,
W.R. Grace was rich. He soon moved to New York, where he worked out of 47 Exchange
Pl. and, later, India House, using a secondhand desk placed near the door so
he might be handy to callers. He speculated in real estate. He dealt in sugar
and rubber. He operated, chartered and invested in ships to carry his cargoes
and those of other merchants: sewing machine oil, shoe-pegs, grindstones, glassware,
shoe nails, tacks, stoves, scales, wallpaper, cutlery, lamps, tools, files,
plateware, machinery and novelties, among many, many other things. His passion
for sail never left him: he built up the last great fleet of sailing freighters
and did not own a single steamship until 1893.


Grace was
an independent Democrat who had never taken more than a layman’s interest
in politics. Nonetheless, in 1878 he had been mentioned as a possible candidate
for mayor. Two years later, he was a delegate to the Democratic National Convention.
He favorably impressed several professional politicians, including John "Honest
John" Kelly, the Tammany Hall boss. In September 1880, the Irving Hall
and Tammany Hall factions of the Democratic Party began negotiating a single
ticket for city office. Irving Hall suggested Grace for mayor; Kelly agreed.
On Oct. 22, 1880, with two weeks before the election, Grace was nominated.


The New
York Times
immediately tossed the campaign into the mud. In its first attack
editorial, the Times said, "Though neither his birth nor his religion
can be held to be of itself a disqualification for the office of Mayor…"
Thus the voice of the establishment signaled its disfavor of an Irish-born Roman
Catholic mayor. The Republicans chimed in, one orator claiming that Grace would
"make this City subordinate to…the Holy Father in Rome." Despite
the outrageous anti-Catholicism of the Times, Grace squeaked in by 2914
votes.


Tammany’s
enduring power rested on social services. The poor don’t think of reform
when the local boss immediately provides food, shelter, clothing and jobs without
endless questionnaires. John F. Kelly was called "Honest John" because,
having been in Europe during most of the Tweed era, he had been unable to steal.
Now he made up for lost opportunities.


Grace and
Kelly were allies at best and the alliance did not survive Grace’s first
month in office. The boss suggested a man for important office whom Grace found
unfit. Grace did not understand public office existed to support the organization.
Kelly called on Grace at City Hall. Voices were heard from inside the Mayor’s
office. Then Grace barked, "No one can dictate to me, Mr. Kelly."
Honest John stomped out of City Hall. Some said he seemed cross. Thereafter,
it was war.


Grace’s
great struggle during his first term was reorganizing the street-cleaning bureau,
which was then part of the Police Dept. Although vast sums were spent, no cleaning
was done and the streets were filthy, with up to a foot of muck in the roadbed.
The commissioners had hired an army of Tammany hacks who mostly appeared only
to pick up their paychecks. This was unwise in the long run. Paying $10,000
for $1000 worth of work is incompetence; paying $10,000 for no work at all is
an indictment.


In early
1881, after comparing the increasing expenditures of the bureau with the increasingly
bad condition of the streets, Grace preferred charges against the street-cleaning
commissioners. Grace knew he was dealing with either corruption or incompetence.
The legislature enacted a Tammany bill creating a separate street-cleaning department.
Then the Governor dismissed Grace’s charges because the commissioners reverted
to duty as police officers and were no longer street-cleaning commissioners.
Yet because Grace had drawn so much attention to the issue, the streets became
cleaner.


Businessmen,
too, tried to raid the city treasury. In 1881, Jay Gould, the financier, used
his control of the New York World to attack the management of the Manhattan
Elevated Railway. He intended to drive down the price of its stock. His attacks
were largely accurate, effective and successful. In late 1881 or early 1882,
Gould asked Grace for a meeting to discuss tax reduction. Grace declined the
offer, simply stating that the Manhattan Elevated would have to pay its taxes.
Gould had a bill written to his order and passed by the legislature. Under public
pressure from Mayor Grace, the Governor vetoed the legislation.


The Mayor
chose not to run in 1882. Instead, he concentrated on governing the city. Grace
returned to business, praised by many who had criticized him during his first
campaign. He did not entirely neglect his political fences: he developed a warm
friendship with a young Republican assemblyman, Theodore Roosevelt, who shared
his interest in municipal reform.


On Oct.
20, 1884, reform-minded businessmen met at the Academy of Music to choose a
clean government slate at the upcoming city elections. They nominated Grace,
creating a three-way race between Grace, the Tammanyite and the Republican,
who had agreed to take a dive in Tammany’s favor. T.R., learning of the
Tammany-GOP deal, came out for Grace. It was an amazingly dirty campaign. Tammany
even called into question whether Grace had been lawfully naturalized. Most
people thought Tammany’s violent attacks on Grace were a most powerful
endorsement of his integrity, and so he won by 10,000 votes.


Grace’s
second term was less dramatic. He understood the job now, and his appointments
were generally strong. The legislature approved his bill to require that all
city franchises be sold to the highest bidder. Surely, he must have allowed
himself a moment of glee when he formally accepted the gift of the Statue of
Liberty from the French Republic in the name of the United States.


After his
second term Grace again returned to private life. In 1900, he dislocated his
shoulder in a fall. Thereafter, he was never an entirely well man. Yet there
were flashes of the old fire. Marquis James in Merchant Adventurer, his
biography of Grace, states that the former mayor sometimes rode the 3rd Ave.
elevated from his home on 79th St. to his offices on Hanover Square. "One
day in his seventieth year, he arose to give his seat to a lady. A young man
dropped into the seat. Mr. Grace took the young man by the collar and lifted
him to his feet."


On Dec.
7, 1903, W.R. Grace left his office and went straight home with a bad cold.
Pneumonia developed in both lungs. He seemed to recover and began transacting
business from his bed. Early in March, however, his health collapsed. On March
20, 1904, he asked about one of his steamers. Then he slipped into a coma and
died.


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