3. He carefully avoided giving us any written statement to that effect on proposing a change of agency.

Lastly, his own decrees here produced by the defendants. prove the contrary. They say, No. 2 B, in the decree of 20th September, 1854, according to their translation: "It being understood that, by reason of the outrageous proceedings of Hopkins, the company he alludes to cannot go in on this country unless it is under the formal approbation of this government, given with a full knowledge of the company and its rules." This, however, is wrongly translated; the true translation is given in Hopkins' despatch: "In the understanding that, with the example of such outrageous proceedings on the part of Mr. Hopkins, the company which he mentions. can not continue in the country unless he shall be entirely excluded from it, and it be placed under the formal recognition of the government, upon bases which it may think fit to establish, in order that, hereafter, the outrages and excess which have given rise to this measure may be prevented." The company could not stay there, except upon such new ex post facto terms as Lopez chose to establish. What these would be, can only be imagined from those he had been recently making. The company could not stay but upon new terms. Is not this a destruction of existing rights? To be completely pliant to his mere will and pleasure, so well described by Lieutenant Powell, is the condition of their continuance. The contract between Hopkins and the company must be broken at his will; no one was authorized by the company to do it-none to take his place, and he be completely excluded from the company. No breaches of law are committed by him. Are such decrees consistent with our just rights? Hopkins was the head; therefore, the chief object of hostility. But the company must go.

We will now cite some of the evidence from disinterested sources as to the value of our position in Paraguay, the resources of that beautiful and abounding country, and as to the patent rights we had acquired in those resources.

William M. Powell-Record, page 113.

Question No. 1. Please state the resources of Paraguay for the development of wealth by an American commercial and manufacturing company.

Answer. I consider the resources of this country, from a cursory examination of it in its present condition, as very

great. In an agricultural point of view, it has an excellent soil, producing tobacco, sugar, rice, Indian corn, and cotton, in an extraordinary degree, and many other articles, such as dye-stuffs, &c., all of which may be found in published articles from reliable persons, to a more or less extent. In regard to machinery, there is scarcely any of it yet in the country, the agricultural implements being of the most primitive kind, and the saw-mill brought there by the company being, at the time I left the country, the only piece of machinery that was not worked by animal power, that I know of, in the valley of the La Plata. In the northeast section of the country, where sugar was produced to a considerable extent, where the yerba was pulverized by sticks in the hands of laborers, there are running streams of water, of sufficient velocity of current to make it a fine location for applying its power to the different kinds of machinery for which we are in the habit of using it in this country. (See also No. 2, hemp; No. 3, India-rubber, now so costly. See Hartshorn's testimony: 4, oils; 5 and 6, woods; and 8, steam navigation.

Question No. 7. Were the following articles of machinery known or used in Paraguay prior to their introduction by the United States and Paraguay Navigation Company? (A list, marked 37 in the company's communication to Commissioner Bowlin, reciting various articles shipped, was here shown to witness, who examined the same, and made the following answer :)

Answer. To the best of my knowledge, none of these instruments were in use, excepting carpenters' tools, blacksmiths' tools, hand-saws, and some varieties of clocks.

Question No. 9. What would have been the opportunity for the navigation company to obtain a leading interest in the commerce and manufactures in that valley, and to have acquired wealth, had they been allowed to prosecute their enterprise?

Answer. A responsible company, under judicious management, with the opportunity of free trade in that valley, should have accumulated untold wealth.

Daniel Ammon-Record, Page 130.

Question No. 5. What are the resources of Paraguay ? Answer. The national resources are timber; its climate is favorable to all intertropical productions. The yerba is among the most valuable of these. The soil is fine.

Question No. 6. Is its climate healthful or otherwise? Answer. Entirely healthful for an intertropical climate. (See No. 7, hemp; 8, tobacco; 9, India-rubber; 10, gums; 11, woods.)

Question No. 19. How valuable would have been the position of the American company in Paraguay, for manufacturing and commerce, if allowed to prosecute its business?

Answer. I can only answer that in a general way, not being a business man. I can only say, that there would have been a great profit in cutting timber, sawing, planing it, and throwing it into market. I do not know the organic law of Paraguay. If uninterrupted or encumbered with moderate duties and rights from the government in any employment of machinery, they could not have failed to be highly profitable. Commerce, only moderately embarrassed by government for its own benefit, must be valuable.

William J. Lamdin-Record, page 134.

Question No. 1. What were the resources of Paraguay for development by an American manufacturing and commercial company while you were there? State fully and particularly.

Answer. I do not think they could have been better in any country. The woods for building and manufacturing purposes were excellent, and for fuel I have never seen their equal. As an illustration, we had wood on the Water Witch for fuel, a cord of which developed as much power upon the engine as a ton of the best anthracite coal. The soil could produce almost any thing grown in tropical climates; they wanted but machinery and enterprise to develop the resources of the country. The quality of the tobacco was excellent, the soil well adapted to its growth, and to that of corn also. I saw the India-rubber tree. Hemp I saw also in small portions, the texture of which was very fine. The climate very healthy.

Question No. 2. Were the farming implements and other machinery introduced into Paraguay by the American company, unknown there prior to that time?

Answer. Yes, I never saw any prior to the time they were brought there by the company.

Question No. 3. What would have been the value of the position of the American company for farming, manufacturing and trading purposes, if undisturbed by the govern

ment.

Answer. I can't tell what would have been the value; but its opportunities for accumulating wealth would have been very excellent, and Paraguay has the finest rivers in the world for steam navigation.

Alexander Ferguson-Record, page 156.

Question No. 36. What, in general, were the opportunities in Paraguay for an agricultural, manufacturing, and commercial company to acquire wealth?

Answer. Could not say as to the opportunity; but the chance, if undisturbed by the government, would have been very good. There were many branches into which the introduction of industry, aided by machinery, must have given profitable results. There was the caraguata, or wild hemp of the country, so abundant that we could not get it out of our way. There were gums and woods in great variety, some of them at San Antonio, where I remember a few large copaiba trees on the place, which, however, are not good for timber.

Ferguson's testimony will repay perusal, as to the resources of Paraguay and the novelty and value of our machinery and implements.

We quote C. E. Hopkins' affidavit on this subject, filed in the Department, having offered to recall him for cross-examination by defendant's counsel. (See record.)

Clement E. Hopkins, being duly sworn, deposes and says: That he is the city editor of the New York Daily Express newspaper, and resides in the said city of New York, at No. 20 Varick Place.

That in the month of March, 1853, he sailed from the port of New York, in the steamer El Paraguay, with the first expedition of the United States and Paraguay Navigation Company; that said steamer belonged to said United States and Paraguay Navigation Company, and was the first side-wheel merchant steam vessel that was ever advertised to go to Paraguay.

The El Paraguay was condemned and abandoned on the voyage, but the deponent accompanied the expedition to Paraguay by other vessels.

At Buenos Ayres, in September, 1853, the general agent of the company chartered the American built side-wheel steamer Fanny, of about six hundred and fifty tons burden and nine and a half feet draft of water, and deponent proceeded in her to Asuncion, Paraguay, she being the largest

vessel that had ever entered the Paraguay river, and the first merchant side-wheel steamer ever seen within the borders of that country. She subsequently plied between Buenos Ayres and Asuncion, consigned to the United States and Paraguay Navigation Company, which was the commencement of steam navigation between the two ports. She was succeeded by an American-built propeller, called the Buenos Ayres, sailing under English colors, which vessel continued in the trade long after several Paraguayan and other steamers had been put upon the route.

No attempt at regular steam navigation on the Parana and Paraguay rivers had been made prior to the management of the steamer Fanny, by the United States and Paraguay Navigation Company, which proved the great profit and advantage of the business; but steam communication has been maintained ever since, and a large and valuable carrying trade in steam vessels has grown up.

With the exception of about three weeks, the deponent remained in Paraguay from October 11, 1853, the date of the arrival of the steamer Fanny at Asuncion, on her first voyage, until September 9, 1854, a few weeks before the final expulsion of the company. During his residence in Asuncion and the neighborhood, he was cognizant of all the doings of the company, and was personally acquainted with nearly all the details of the company's business.

The Cuban processes of making cigars and preparing tobacco for manufacture were first introduced into Paraguay by the United States and Paraguay Navigation Company. In the employ of the company were two practical cigar makers, and a practical director of cigar manufacturing, natives of Cuba, by whom nearly two hundred Paraguayan women were fully instructed in the art of making cigars on the Cuban models. Previous to the introduction of these processes by the company, the tobacco of Paraguay was not subjected to any improvement, and the cigars were of unmarketable appearance and unequal quality.

The United States and Paraguay Navigation Company imported into Paraguay, on the steamer Fanny, a saw-mill, which was erected at San Antonio, near Asuncion, and worked by steam power. This was the first saw-mill ever brought into the country.

Previous to its erection, no lumber had ever been sawed in Paraguay by other than handsaws.

The company also introduced and erected an improved