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horse-power, the first one of the description ever seen in Paraguay.
The company likewise imported into Paraguay on the steamer Fanny, a planing machine, which was partially erected when the company were driven from San Antonio; the full apparatus for a brick yard, the machinery of which was also in process of erection; a bark mill, sugar mill, and entire apparatus for an extensive sugar manufactory; a numher of grist mills, rice hullers, corn shellers, copper-still machinery—all of which were entirely new, and first introduced into Paraguay by this company. Also, a number of improved cotton-gins, the first gins of their description ever seen in Paraguay.
The steam engine of the saw-mill was the first stationary steam engine ever seen in Paraguay.
The United States and Paraguay Navigation Company likewise imported into Paraguay, on board of the steamer Fanny, a variety of American agricultural implements, plows, harrows, hoes, spades, rakes, axes, carpenters' tools, clocks, lamps, cooking stoves, iron furniture of a variety of kinds, light American parlor furniture, and a great number of notions, all of which were entirely new, and just introduced into Paraguay by the company.
The company likewise imported on board the steamer Fanny, and first introduced into Paraguay, a quantity of American tinware.
The general agent of the United States and Paraguay Navigation Company also imported into Paraguay a large and powerful oil press, to be used in making palm and peanut oils, articles of large demand and production, but which had never been manufactured by means of improved power. This was the first power-press ever seen in Paraguay.
This company also introduced into Paraguay the American mule cart and harness, previous to which mules had not been employed as beasts of draft in Paraguay.
Also, American ox yokes, the first yokes ever seen in Paraguay, oxen having been previously tied by their horns to carts. Also, an American carriage and an American top buggy, the first vehicles of the kind ever seen in Paraguay.
Also, full sets of harness for carriage horses, no horses having ever been harnessed or driven with reins in Paraguay prior to the introduction of this harness by this company.
All of which articles, machinery, &c., deponent knows of his own knowledge were first introduced into Paraguay by
the United States and Paraguay Navigation Company and their agents. And further deponent saith not.
CLEMENT E. HOPKINS. Sworn before me this 26th day of July, 1856.
R. E. STILWELL. We have cited all the testimony of all the officers of the American Exploring Expedition now in the country-Powell, Ammon, and Lamdin, of defendant's witness, Ferguson, of C. E. Hopkins, of report of Captain Page-none of whom have any connection with the company-all of whom extol the climate, soil, and agricultural resources of the country, and its opportunities for manufacturing and commercial enterprise. We submit, also, the statement of Governor Arn. old upon the subject. And to this view of the matter Para. guay gives no denial or qualification. The value of our position in Paraguay, which holds the key to the wealth of a region surpassing in natural resources the valley of the Mississippi, we leave to the intelligent reflection of the commission.
We were not only the pioneer company in that region, but we were entitled to patent rights of immense value. The law which conferred them, we have quoted. The fact that we were the first to introduce into Paraguay very much of the agricultural, mechanical implements, and machinery peculiarly suited to the development of a new country, we have shown by the testimony of Powell, Ammon, and Lamdin, of Ferguson, of the six Paraguayan witnesses, and of Clement E. Hopkins.
To all this testimony no evidence has been offered in reply or explanation. The undoubted fact of our introduction of these articles into Paraguay is admitted by the most expressive silence. But a technical objection is interposed. It is said truly, that the law required an application to made to the government of Paraguay. The terms of the law in this respect are : “Whoever desires to obtain and secure the enjoy. ment of an industrial property (propriedad industrial) of the kind above mentioned, should firstly apply to the Secretary of the Supreme Government, and declare in writing whether the thing he introduces is an invention of his own, an improvement, or only an article he wishes to introduce into the country ; secondly, he must deliver, closed and sealed, a true description of the principles, the means, and process which constitutes the invention, as also plans, drawings, models, and everything in relation to the same, in order that the said sealed document may be opened at the moment the inventor receives his title of ownership.” Two most conclusive replies exist to this objection. 1. That we did apply, and the President said, " That is but a form.” You have brought the articles here, and can at any time have the papers executed; or, in the language of C. E. Hopkins, in his affidavit to the invention or discovery, it was but right and proper that Mr. Hopkins should be allowed time to set up his machinery, and exhibit it in models or otherwise, before taking out his patents.
, page 30: "Among other things referred to at various times were the subjects of the patent rights to which the company were entitled by the decree of 1845, for all the articles new to Paraguay that had been introduced by them. The President always remarked that there was no necessity for Mr. Hopkins to trouble himself about taking out the papers; that, having introduced the articles, he had a virtual monopoly of them, for there was no one to compete with him in their importation, and as they were all of American manufacture, the company
would be the most natural channel for any one in the country to order them through. Having no fear of competition, Mr. Hopkins was not inclined to push everything at once, and reserved the taking out of the papers, which the President remarked was only a form, until the more important branches of the company's business should be put upon a firm basis.” These conversations, reported by E. A. Hopkins to his brother, at the time they occurred, (that Mr. C. E. Hopkins certifies truly no man will question,) accords with the conduct of President Lopez in his treatment of the company, and in his delay in having the deeds of San Antonio drawn for months after the company had possession there. These last statements E. A. Hopkins heard repeatedly from the President himself, as he testifies in this connection. To this statement of the case there is no contradiction in the testimony for the defence; and certainly Paraguay cannot take advantage of the technicality which it waived.
The second answer is, that at the time of the troubles and of our expulsion we yet had the right to apply for the written letters patent; and compliance with such a request was but a form, which the government could not, under its own decrees, rightfully refuse. The law does not limit the time for the application for letters patent. It should allow a reasonable time therefor; and inasmuch as it requires a full des. cription, plan, drawings, models, and everything in relation
Again, the law provides for forfeiture of a patent, in section 4 of article 12: "If, during the period of two years from the date of his patent, he should fail to work the same, except he may justify the cause of his inaction.” That two years' “non user” is required to forfeit a patent right, analagous to the provision giving the same effect to the two years' inaction by an inventor in our own system of patent laws. By analogy, two years' delay should seem, therefore, to be the least time which would destroy our right to take out our patents. Before one quarter of that time had expired, the trouble, speedily ending in our expulsion, occurred. We had not then forfeited our right (founded up on the substantive and undisputed fact of being the first to introduce these American implements and machinery) to the exclusive sale and use of them in Paraguay for a term of years, as provided in the decree. These rights were the principal inducements to our enterprise, and the great value they represent are a part of our loss, from this wrongful expulsion. A patent is property as much as a lease of a farm, though the value of each depends upon the income to be derived from it for a term of years.
Value of Patents.
Now, merely to illustrate the value of some of these improvements, take the steam saw-mill and circular saws. Suppose the one set up at San Antonio was weak. It excited the surprise and delight of the Paraguayans, (Ferguson.) Crowds of its citizens and officials came to see its workings. It secured the right to the use of such powers, as the laying of a mud-sill secures the right to the water-fall. New and excellent machinery for the same purpose was in the mouth of the river. At seven hundred feet a day, the work of this weak and cheap mill and engine, the wages of Ferguson and Boyd were $100 a month. Fuel cost only the cutting, and was equal for furnishing steam-one cord to a ton of anthracite coal, (Lamdin & Page.) Lumber, by price current, 50 to 627 cents a vara (three feet.) But these items are not needed to how th ue steam saw-mills and circular saws above common hand labor.
We have seen a suggestion that steam saw-mills were of no value in Paraguay, because Lopez, like the old European governments, claims a monoply of the forests. Yet lumber must be cut and used, exported and sold: that he leaves to others. We had shown how cheaply this could be done. Could he have forbidden us the use of our machinery, and obliged us to go elsewhere? What would the effect of such conduct be upon his people? Rightfully, he would have sold to us permits to cut lumber on the same terms he sold to others.
So with the cigar factory. The books and Morales show the full cost to be less than four dollars a thousand-price, in Asuncion, ten; average price of first and imperfect lots, in United States, over twelve.
Full value of good ones, twenty-five; thirty-five offered after trial, and demand could not be supplied. The factory had at last got into successful operation, making 27,000 a week.
Just as soon as these establishments were successful, we were expelled the cigar factory taken by Benancio. The steam-saw mill, for want of the valves, he could not use. But the value of all our machinery and implements, in such a country, in American hands, an intelligent judge at once and intuitively knows to be vast, almost beyond calculation. As to the operatives, they were all willing to agree to work, and to commence; but soon got tired, and when their abundant wages (see Hopkins' deposition) came into hand, broke off work. We had to appeal to the law of the country, to compel their performance of their contracts—a right allowed everywhere. Practice and our liberal wages were fast making the trouble which, in part, caused our large initial expenses less, (see close of Hopkins' cross-examination ;) and if not overcome, or if our agent had proved injudicious, we could and should have changed, and employed other operatives and agents. We had a large number on the route in the second expedition; and the presumption of law is that we should use our advantages in Paraguay wisely. No wrongdoer can, in self-defence, be allowed to suppose otherwise, or be sustained in such supposition by any judicial tribunal.
The value of our vested rights in all these patents for the use and sale of American machinery and implements, includes, of course, the exclusive right of importation and sale of American agricultural and household implements. Cap. tain Page's book shows us the value of these. Time will not allow us, nor is it necessary in argument, to dwell upon these considerations. But the commissioners, especially the