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1837, for the restoration of records and drawings, the sum of $310, as per statement marked C.

The aggregate of expenditures under the different heads above enumerated, is $41,878 35; leaving a balance, to be carried to the credit of the Patent Fund, of $21,232 84.

On the first day of January, 1847, the amount of money in the treasury, to the credit of the Patent Fund, was $186,565 14; which, with the balance paid in during the year 1847, will, on the first day of January, 1848, amount to the sum of $207,797 98.

This It will be seen, that the surplus carried to the credit of the Patent Fund, during the last year, is much greater than that of any former year. arises from two causes, first, the great increase of applications for patents and caveats over any former year; and secondly, the inability to examine and decide upon applications in a reasonable time after they have been filed in the office, growing out of the inadequacy of the examining force of the office, causing a comparatively less number of withdrawals, and a comparatively less amount of expenditure for copying and recording patents. If Congress should authorise an increase of the scientific corps, so imperatively needed, the number of withdrawals will be greater and the other expenses of the office will be increased, and thus the balance next year, will be, in all proDability, much smaller than it is this year.

All moneys paid into the treasury on account of the Patent Office, are set apart by the ninth section of the act of July 4, 1836, and the fourteenth section of the act of March 3, 1837, for the benefit of the Patent Office, and denominated the Patent Fund; out of which all expenditures provided by existing laws are to be paid, the Patent Fund being especially appropriated for that purpose. By thus establishing the Patent Fund, and appropriating it to the special object of defraying all expenditures of the Patent Office authorized by law, Congress expressed its intention to constitute the office upon the principle of a self-sustaining institution which is to exist upon its own revenues, and not depend for support upon the general treasury. Thus far, it gives me pleasure to say, the intention of Congress has been fully carried out, the office having not only paid its own expenses from its own revenues, but it has accumulated a comparatively large balance in the treasury to its credit. With the exception of the cost of erecting the pres ent Patent Office building, to which the office contributed $108,000, from its own funds, it has never been a charge upon the treasury.

Nearly all of its revenues are derived from inventors. It is sustained by their contributions; its services are appropriated to the promotion of their particular interests, although rendered to all other interests when required; and it may, therefore, truly be regarded as the head and representative of the inventive genius and the industrial arts of the country.

The annual reports of the two principal examiners, addressed to the undersigned, giving a view of the inventions and improvements which have passed their respective desks, are annexed, marked D and E.

To these two important: reports attention is particularly called. They give an interesting summary of the scientific operations of the office during the past year, thus presenting in a small space the most conclusive and gratifying proofs of the progress of our countrymen in the improvement of the useful arts. It will be seen from the two papers referred to, that the year just past has been fruitful of inventions of a most important and valua ble character, if they have not been of that novel and brilliant description

which sometimes surprise and startle the world, at the same time benefiting it by their great utility.

The peculiar circumstances of society in this country growing out of its settlement-very recent when compared with the age of other civilized por tions of the earth, and imposing the necessity of subjugating the forest, of smoothing down the rugged face of nature, and of planting upon its bosom the arts of industry, which have rapidly germinated and developed themselves into great and important interests, now flourishing with a vigor and energy which enable them to become the formidable rivals of similar interests of older nations-have tended to stimulate the inventive genius of our people to the production and improvement of machines and processes of an utilitarian and labor saving character, rather than to the pursuit of more scientific discovery. Hence, while we may be behind other countries in the discovery and development of scientific principles, we are probably equal with, if not in advance of them, in their application to the useful purposes of life. But, if the genius of our countrymen is not now so much absorbed in the investigation of abstract science as that of the citizens of older and more opulent countries, the circumstance of society so rapidly improving by the steady tide of prosperity which sets in our favor, will soon place us in a condition to contribute our share to the sum of knowledge which the combined genius and labors of the learned of all civilized nations annually bestow upon mankind.

It will also be seen, on reference to the reports of the Examiners above referred to, that the labors of those two officers are of a very varied and complicated character, embracing in their range the whole field of invention, and requiring a thorough knowledge of every branch of science, as well as the state, past and present, of the arts in all countries. From this fact the talents and attainments requisite for the able discharge of the duties appertaining to their desks may be readily inferred. It may be safely assumed that there is no office in the Government, the duties of which are of a scientific nature, which requires more mental capacity, or more close and intense application, than that of Examiner of Patents. It would, therefore, be reasonable to suppose that there would be attached to that office, a salary commensurate with its duties and the talent and attainment which it requires. But, so far from that being the case, the Examiners now receive but $1500 per annum, a sum paltry in comparison with the abilities and qualifications which they must possess, very much below the salaries paid to persons filling stations requiring scientific attainments of an inferior grade, and only equal to the common clerkships in the offices of the Capitol, and the weighers, measurers, and guagers of the Custom Houses. My predecessor in his last report, called the attention of Congress to the inadequate salaries allowed to the Examiners in this office, and respectfully recommended an addition to be made to that branch of its service. In the two reports which I have had the honor to submit to Congress, I have expressed my concurrence in the recommendations of my predecessor; and from the action which has already taken place in the two branches of that honorable body, I am encouraged to hope that it will not be long before justice is done to that valuable class of officers, whose merits and claims I now again commend to its favorable consideration.

The necessities and embarrassments under which the office is now laboring on account of the want of an adequate scientific force to perform its greatly increased business, impose upon me the duty of earnestly but re-,

6

spectfully soliciting the prompt action of Congress for its relief. A brief statement of facts will show the absolute necessity of an addition to its scientific corps.

By the act of July 4, 1836, reorganizing the Patent Office, the Commissioner of Patents was allowed but a single Examiner. By the act of March 3, 1837, he was authorized to appoint another Examiner. And by the act of March 3, 1839, he was authorized to appoint two Assistant Examiners. Thus, within a period of less than three years from the reorganization of the office, there were two principal and two assistant examiners provided for by law; since which time no addition has been made, because none has been authorized.

In 1840, the first entire year after the last addition to the examining corps was provided for, the number of applications for patents was 765, the number of caveats filed was 228, and the number of patents granted was 475.

During the year 1847, the number of applications for patents was 1,531, the number of caveats filed was 533, the number of patents granted was 572, and the number of applications rejected was 557.

Thus it appears that the business of the office has increased one hundred per cent. since the last addition was made to the examining corps in 1839. In the year 1844, the year preceding my appointment to the office of Commissioner, the number of applications for patents was 1,045, and the caveats filed 380. In 1845, the number of applications was 1,246, caveats 452. In 1846, the number of applications was 1,272, caveats 448. And in 1847, as before stated, the number of applications was 1,531, caveats 572. Thus since my appointment to the office of Commissioner of Patents, the business of the office has increased in the ratio of 33 per cent.

During the five years commencing with 1840, and ending with 1844, embracing the five last years preceding my appointment to the office of Commissioner, the amount paid into the treasury to the credit of the Patent Fund was $25,200 43. During the three years since my appointment, the amount paid into the treasury is $37,018 72, showing an increase of surplus over expenditures in a fhuch greater ratio than 33 per cent.

In 1844, the business of the office was quite equal to the ability of the examining corps to perform it, and in anticipation of the early necessity of an addition to that branch of the service of the office, my predecessor in his last annual report suggested that such addition would soon be required. During the last three years it has far transcended the capacity of the examiners to do it as it should be done, or to do it at all, and hence it has accumulated until it has produced serious embarrassment to the office, and very great injury to the interests of the inventors. The office is now seven or eight months in arrear of its business, and is daily becoming more and more embarrassed.

In view of the increasing accumulation of business and the consequent embarrassment of the office, I called the attention of Congress to its condition and recommended an immediate addition to its scientific corps in my report of January, 1846. Before the close of the session of 1845-6, anticipating from the great amount of more important business then pending before Congress, that the necessities of the Patent Office might be overlooked, I again called the attention of Congress to the subject by a letter addressed to the Committee on Patents of the Senate, dated June 10, 1846. Congress, however, adjourned, without taking any action for the relief of the office.

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The

In my report of January, 1847, I again repeated my request for an addition to the examining corps, pressing in urgent but respectful terms the embarrassments of the office growing out of its increase of business, and the absolute necessity of the adoption of suitable provisions for its relief. session being about to close, without, as I apprehended, any action for the relief of the office, I again brought its embarrassments and necessities before both houses of Congress by duplicate letters addressed to their respective committees having the interests of the Patent Office in charge, dated February 17th, 1847. At that session a bill passed the House of Representatives providing, among other things, for an addition to the examining corps; but failed in the Senate for want of sufficient time to act upon it.

The embarrassments of the office continuing, and greatly increasing in consequence of its rapidly accumulating business and the want of an adequate force to execute it, at an early day after the commencement of the present session, and in anticipation of my annual report, I again by a duplicate letter addressed to the Committees on Patents of the House and Senate, dated December, 1847, respectfully but earnestly requested the interposition of Congress for the relief of the office, by providing for an adequate increase of its examining corps.

Thus have I, in five separate communications to Congress and its appropriate Committees within the last two years, made full expositions of the embarrassed condition of this office growing out of its greatly increased and increasing business, and the inadequacy of its force to perform its duties.

In view of these facts, I am confident that the Patent Office cannot be held responsible for the embarrassments and delays which exist in one of the branches of its service. I am conscious that the inventors by whose contributions this important institution is sustained, have grievous cause of complaint on account of the disappointments and injuries which they suffer from the delays which their business is compelled to encounter in the Patent Office, but I am confident their enlightened liberality will appreciate the earnest and persevering efforts which have been made by the undersigned to remove the just causes of their complaints, and that they will patiently wait the action of Congress for their relief, which, it is gratifying to know, may be confidently anticipated before the close of the present session,

In my former reports I have recommended a change in some of the features of the patent law as it now exists. For the nature of those recommendations, and the reasons on which they are founded, I would respectfully refer to the annual reports of this office, for 1845 and 1846. In my judgment the changes proposed are necessary to give adequate security to that valuable and meritorious class of our citizens engaged in inventive pursuits. As the law now is, the remedies which it affords to patentees are, in most cases, inadequate to the protection of their rights and the prevention of infringement upon them by that unscrupulous and unprincipled class of persons, who make it a practice wilfully to depredate upon patent rights, and who, from the basely criminal character of the offence which they commit, are stigmatized by the application to them of the infamous Certainly, adequate protection should be given to the epithet of pirate. honest inventor who devotes his substance and his incessant toil for the benefit of society, against the freebooters who invade without scruple his property, which, to him, is more sacred and invaluable, because it is the cherished creation of his own genius.

Unfortunately, property in patent rights is not generally looked upon

by

society in the same light in which property existing in other forms is regarded. This results, perhaps, from the fact that many useless inventions have been patented, by which the public have been imposed upon and deceived. If such be the fact, it does not in any respect affect the general principle upon which not only property in inventions, but all rights of property, are founded.

Nobody doubts the right of property which a man has in his lands, houses or common chattels; and all agree that he has a right to claim from the government under which he lives, protection in the enjoyment of his property. Nay, so careful is the government itself of the sacred right which every citizen has in his own property, that it never takes it from him without giving him an adequate compensation for it. The necessities of the government are, in certain emergencies, supreme over the rights of its citizens, and, by virtue of its right of eminent domain, it can take the property of its citizens for the public use. But in all civilized countries, in which the immutable principles of morality and justice prevail, governinents never take the property of their citizens and appropriate it to their own use, without first giving an adequate compensation for it. This sacred immunity from unjust invasion of private rights, even by the sovereign power of the state, is secured in all the constitutions, national and state, of this confederacy. They recognise the inviolability of private property, and provide that it shall be taken only for the public use, and then only upon the condition of an adequate indemnity to be first awarded and paid.

It is upon this very principle that the law is founded which provides that property in patent rights shall, on certain conditions, pass from the inventor into the possession of the public, after the lapse of a fixed term of years. Our whole patent system, having its origin in the constitution itself, is built upon the recognition of this absolute right of the inventor to the exclusive enjoyment of the productions of his combined genius, labor and capital. It regards such a description of property as the law does all other descriptions, as sacred and inviolable, in the possession and enjoyment of which the owner has a right to claim protection. But it subjects it, as it does all other descriptions of property, to the necessities and uses of the body politic, on the return of a fair and just equivalent.

The inventor having the sole control over his invention, may use it in secret if he pleases. He is not bound to disclose it to the public, and the public has no right to its use except by purchase, unless he should voluntarily surrender it. If the community should get the possession of an invention in any other way, it could only have surreptitiously obtained it. Hence, in order to induce him to disclose it, and to permit the public ultimately to enjoy it in common with himself, the government, representing the community, offers him the exclusive enjoyment of his property during a term which it supposes will be sufficient to enable him to obtain from its sale to others, an ample remuneration for his time and expenses in producing it. Therefore, upon strict principles of justice and equity, he is entitled to complete protection in the enjoyment of his rights during the term limited, and if he is not thus protected, the contract is in effect broken on the part of the government; and if such a contract, expressed or implied, existed between man and man, it would, if thus broken, be declared a nullity, and the inventor would be remitted to the enjoyment of his original rights, or exemplary damages by way of compensation would be given to him. And this system is just and equitable to the inventor as well as ta society.