The free lance. (Fredericksburg, Va.) 1885-1926, 1905-08-31
JAPAN WAVES
ALL INDEMNITY
It is Believed New Basis Of Com
promise Will Insure Peace.
TO BE LEFT TO ARBITRATION

Baron Komura Will Submit TO Hus'
SLAMS Proposition For Mixed Com
mission to Name Price to BE Pad
For Northern Half Of sakhalin-A
eackdown on Main Issue.
Portsmouth. \. H.. Aug. 29.-Baron
Komura. acting upon instructions re-
ceived from Toxic as result Of the
meeting of the cabinet and elder
statesmen" under the direct presi-
dency of the emperor Of Japan, VIII
submit to Mr. Witte a new basis Oh
compromise. and that compromise IL
Is firmly believed will insure peace.
Tho revelation contained in the AS
sociated Press exclusive announce
ment that Japan had already informed
Emperor Nicholas. through AmDassa-
dor Never. that Japan was ready To
waive the question of indemnity ana
submit the price To be paid lot the
northern half of Sakhalin To the jug
mant of A mixed commission, but pre-
nared the way for Japan's hackdoWn
upon the main issue. The announce
ment had been the sensation Oh lhe
dav II had met with denials high anu
low. II was declared TO be imp0ssipi''
Incredible. The Japanese declined 10
admit II and the Russians said they
had no confirmation. Mr.. Witte ihu-
mated strongly that St Petersburg
had not apprised him of any such ac-
fion bv the president There was even
q disnositlon 10 ridicule the idea OF
arbitrating the price OF hall oil 'he
island Nevertheless. on all hands II
was admitted that II Japan took this
position the ground was cut out from
under Emperor Nicholas.
Mr. Witte by consummate Skill IN
conceding all the demands OF Japan
involving the real issues OF the war
had manoeuyred his adversaries into
q position where, unless they aban-
doned the claim for indemnity. they
could be held responsible for continu-
ing the war for money. The japanese
nv now foregoing the demand for IN
demnitv practically turn the tables
upon Russia and shift the burden back
10 her shoulders II she does not con
sent 10 submit minor issue 10 the I'M
martial Judgment Of a tribunal. Mr.
Witte publicly dissents vigorously
from the proposition. and there will
still be a struggle with Peterhof. but
If japan agrees TO formally renounce
all claims for direct or Indirect com
pensation for the expenses of the war
the big stumbling block to peace IS
out of the way.
Everything will depend upon the
form In which the proposal is sub
mitted. Should the remuneration be 50
coupled with the other proposition that
Russia could claim It was still only a
disguised demand for tribute. the gulf
might only be narrowed. not bridged.
All the private adyias that reach the
Russian mission froS St Petersburg
indicate that the military party Is
bellicose. insistent that Lineyitch be
given a chance. and active in its In
sistence that negotiations be at once
broken of.
Mt Witte feels the pressure Of this
sentiment. and as a man OF ambition
he may not feel that he can AFFORD 70
lay himself open 10 the charge that he
is temporizlng with the situation. He
has power under his instructions 10
reject out OF hand any proposition in
volvlng the payment Of a kopeck OF
tribute. He need not consult his I'M
perial master He is a man Of in
SEPARATION. and he is quite capable II the
japanese proposition savors still OF
blood money" 10 refuse even TO ac-
cent II for transmission to St. Peters
burg
But such a stroke is not expected.
Mr.. Witte knows that public opinion,
both in America and in Europe. as well
as in Russia. would condemn him If he
broke of the negotiations just as the
way was opened for possible accord.
While apparently the real negotia-
lions leading up to the denouement
we're conducted by the president at
Oyster Bay. acting through Baron Ka-
nekO on the one hand and Ambassador
Never on the other. II IS now believed
A. hnnaafh
the surface here Another indication
of the sudden turn in the events was
the arrival here Of Frank A. Wander
LID. vice president of the City National
Bank of New York He registered at
the hotel as John Howard" and after
dinner went to Mr.. Whites room and
remained there one hour. When asked
his mission. Mr. Vanderlip said he was
only interested" in the situation. He
had met Mr.. White several years ago
when he was at the head OF the Rus
sian finance ministry and had also
seen him In New York upon his ar
rival. He had talked with him about
the situation and outlook IN Russia,
the state Of the negotiations, etc. He
evaded Inquiries as to whether the
subject of loan had been discussed,
but considering the Importance Of the
financial group of which the City
National Bank is a member, and the
fact that the bank took part on one
of the Russian loans. It is fair to as
sumo that the question of finances was
not entirely ignored.
Some OF the japanese correspond
ents were greatly excited over the re-
ports that the Toxic government had
surrendered on the subject OF indem-
nifty. They refused TO believe 1t, de-