(FORTUNE Magazine) – J. Peter Grace, longtime chief executive of W.R. Grace Co., made headlines in 1984 when the commission he headed came up with 2,478 ways to reduce federal waste, to the tune of $424 billion over a three-year period. But then Grace, 76, ran into Congress. Says he: ''I didn't realize what a bunch of shits Congressmen are. I thought all we'd have to do was point to where savings could be made, and then they would be glad to do something to stop the waste.'' He thinks they won't change until voters demand it. Even so, Grace claims that the U.S. is better off for the effort of the many businessmen who contributed ideas. He says the government has saved $110 billion by following at least some of the recommendations that the commission put together. Among them: better cash management through use of electronic fund transfers. Grace carries on his fight as co-chairman (with columnist Jack Anderson) of Citizens Against Government Waste. The nonpartisan group has 350,000 members, largely as a result of mail solicitation. It is emerging as an effective lobby, and played a lead role in pushing the decision to close many U.S. military bases.W.W.