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persons who had means of information on the subject, as far as may be thought necessary.
After having established themselves in the country, commenced the erection of valuable works there, such as saw. mills, cigar factories, &c., sent out small steamers to navigate the upper waters of that region, which were built by them expressly for that purpose, and when the second expedition had just arrived at the mouth of the La Platte, the company were broken up in business and driven from the country by decrees and acts on the part of Paraguay, which, it is admitted, by the preceedings of the Government and by the treaty, were wrongs which required the most complete redress. (See President Buchanan's message of 1857-28, with report and accompanying documents from Senate Committee of Foreign Affairs, 36th Congress, 1st session, No. 60, and from House Committee of Foreign Affairs, same Congress, No. 365, and the official acts of Congress thereon; the instructions of the Department of State to Mr. Bowlin, and the treaty and convention by which Paraguay agrees to pay the just amount of the claim of the company, to be ascertained by this commission.)
For the actual expenses and losses already mentioned, as well as for the money expended in attempting to procure a reasonable reimbursement therefor, the claim of the company will doubtless be admitted by all parties.
Equally just, we think, is the claim which it makes to be indemnified for the value of the position of which it was wrongfully deprived by the act of Paraguay. Its outlay was not only money, but intelligence, investigation, time, enterprise, risk, anxiety; and these go to make up the actual investment which created the position.
The precise figures of this branch of the claim it would be difficult to specify, but the justice of such claims is recognised in all jurisprudence, and the measure of such damages is determined by the discretion of the tribunal. The Supreme Court of the United States has held that in the case of a wrong, where the wrong doer himself, as in this instance, is the party before the commissioners, damages are not limited to the mere cost or value of the property wrongfully destroyed. (See 3 Wheaton, 516.
Another branch of the claim arises from the destruction of grants made by the law of the country, in the nature of patents for the machinery and processes first introduced into Paraguay. The company sent to Paraguay the following articles, many of which were before unknown in that country, and to which they were entitled to a monopoly for a term of years: 1 steam engine
1 cheese press 2 Miner bee hives
1 Geddy's harrow 1 Fall's largest brick machine 4 dozen Markham's hoes 1 bark mill
5 dozen weeding hoes 2 18-saw hand gins
24 dozen Markham large hoes 1 16-inch hand burr mill 8 Nos. 18 & 19 polished plows 2 rice hullers
2 No. 20 Dfk. w. and c. plows 1 portable saw mill
1 No. 1 D. mould plow 1 Taplin's largest power, (a 1 No. 3 D. mould plow
machine by which horse- 3 road scrapers
2 carpenters' tool chests 3 corn shellers
12 dozen axes, (Simmons') 1 planing machine, and a com- 1 dozen axes, with handles
plete set of circular saws. 17 dozen cane knives (No more profitable ma- 1 dozen grain sickles chine ever patented in the 6 dozen handsaws UnitedStates, and the great 6 dozen scythe-stones occasion for its use in Para- 12 ox-yokes, complete guay or any other country 3 platform scales, (300, 500, is obvious.)
and 1,000 pounds) 1 3-roller sugar mill
18 sugar boilers, (3 each 25, 1 Dick's patent anti - friction 30, 40, 50, 60 and 80 galls.)
hemp press, which took 6 sets blacksmiths' tools
1 set brickmakers' tools
liar to us in that country, 6 vises
17 varieties of clocks and time 1 canal barrow
pieces, 8 day to commodi 1 mule car and harness
24 hour 6 scythes and snaths
2 salamander safes 2 grain cradles
Stoves, No. 1 to 5, inclusive
5 3 thermometer churns, (new 1 melodeon
All the foregoing were actually landed by this company ir Paraguay.
In addition, they sent per schooner E. T. Blodgett, a saw. mill of eight stand saws, and one large cotton gin complete. For the latter we do not claim, ours not being the first in Paraguay.
To illustrate the value of some of these, we will consider, first, the peculiar Cuban method of manufacturing cigars, including its chemical process. We had put in operation under that method a cigar factory employing at the time it was closed 115 operatives, who would make three hundred per day each, or per month of twenty-six working days, 7,800, making the product of 115 operatives, 897,000 cigars
The cost of these cigars in Paraguay was $2.50 to $3 per thousand, and sold at the factory, for even inferior descrip tions, at $10 per thousand, leaving a clear profit of $7 per thousand - equivalent to $6,279 per month, and $74,548 per year, and for ten years, $745,840 !
These cigars, made by these inexperienced operatives, sold in the United States at $20 and $30 per thousand, of the highest grades and price. The whole was readily sold, and a demand for more than we could supply; and even as high as $35 per thousand was offered. Say, then, best cigars cost in Paraguay $4 per thousand, and $4 per thousand freight and duties (ad valorem,) they would yield our company in the United States a net profit of $22 per thousand.
It may be safely estimated that as the operatives became more experienced, they would produce a better article, and largely increase the quantity. If, then, we estimate the profits of this
peculiar mode of manufacture, (since adopted by President Lopez,) at $22 per thousand instead of $7, we have the result of $236,808 net profit per annum, and for ten years, $2,368,080, with 116 operatives. Now, what would be the value of such exclusive privileges, from which such results could be obtained ? — the exclusive privilege for a manufacture which could be limited only by the possible production of tobacco in Paraguay, and the demand for cigars in the markets of the world.
The company had in operation the first and only steam saw mill in that country, and at the time of our interruption by the government of Paraguay produced 700 feet, or 247 Spanish varas, per day ; valued at the mill at 50 to 62 cents per vara, is $123.50. The cost of logs in South Carolina or Maine, with labor at $1 per thousand to produce the above quantity, would be $5, and labor of sawing $2.75, making the whole cost of 700 feet per day $7.75 only, leaving a clear profit of one saw, $115.75 per day; 300 working days per annum would yield $34,725 net profit of one saw per year, and for ten years, $347,250. Encouraged by these immense results, the company sent out in their second expedition a gang of eight saws, which were stopped at Buenos Ayres, in consequence of the difficulties and seizure of our property in Paraguay.
Accompanying this second expedition, was a skillful millwright to erect and operate this gang of eight saws. With the nine saws in operation, we should have realized, for ten years' monopoly, vast sums of money.
Buenos Ayres, at the mouth of the river, is one of the largest lumber markets in the world, and largely supplied from the United States. What, then, would be the value of such exclusive privilege for ten years of operating steam saw-mills in the manufacture of lumber from the forests of Paraguay, and the adjacent countries?
The company had also a brick machine at their establishment at San Antonio, and of the largest size; one day's product of which would be 10,000 bricks. The cost in the United States, with labor at $1 per day, and wood at $5 per cord, would be $4 per thousand. The value in Paraguay was $20 per thousand and upwards; this would leave a profit of $16 per thousand, or $160 per day for this single machine. Allow 200 working days per annum, and we have $32,000 per annum, and for ten years, the sum of $320,000.
Many of the brick-makers in the United States run from twenty to forty of their machines. Now, what would be the value of the exclusive right to run enough of their machines to supply the demands of the whole of Paraguay ?
We claim to have introduced for the first time the steam engine in Paraguay. What is the value of such power in a country without water-power excepting that upon the estate owned by this company?
This is a country in which monopolies are not novelties, many of the most important productions and branches of business being under the control of President Lopez, the principal bankers and merchants of Paraguay; and the inquiry is not as to the probability of the use of any of these machines and implements, and modes of manufacture solely by the natives of Paraguay, but of their value when used by us or by the citizens of the commercial nations which have formed treaties with Paraguay, and regard it as one of the most productive fields of future commercial development. (See Page's report.)
Incidental to these privileges, our position, if understood, would have given us much of the very profitable commerce of Paraguay, and the steam navigation of the many confluents of the La Platte, for which special purposes we built and sent out two steamers, one of which was employed by Captain Page in his explorations, and this commerce and this navigation would lead also to that of the rich provinces of Brazil above, and of Bolivia, which has offered the most liberal inducements, with great and peculiar privileges, to those who shall open to her the communication to the Atlantic.
If our ideas upon this subject seem extravagant, they are those we held in common with the most intelligent merchants and statesmen of Europe. (See Page's report, page 37.)
After all our experiences in that country, the convictions which induced us to expend our money in this enterprise have been strengthened, and we believe that if the plans we formed, based upon the public decree of President Lopez, had been fairly developed, we should have realized, in the developments which the implements of our American civilization would have produced in the heart of South America, a wealth akin to that which the great commercial companies of Europe have realized in the East Indies.
We have given in this paper but illustrations of the value of a portion of these rights. The value of all of them, in the view here taken of the subject, may safely be left to the judgment of the commission.
The commissioners will perceive that we claim redress for the admitted wrongs of President Lopez toward our company and its agents, and that redress cannot be full and just unless the company are made whole for the money they have expended, and for which they are liable.
That beyond this expenditure, we are entitled to a reasonable allowance for the expense of procuring redress for these wrongs.
We are entitled also to compensation for time, labor, anxiety and suffering expended and incurred in the enterprise; to damages for the wrongfulness of the acts of expulsion; and finally, to compensation
or an equivalent for the patent rights or grants and franchises bestowed upon us by the laws of the country, and leading inducements to our enterprise, which