The Birmingham age-herald., 1905-08-25

Portsmouth, N. H.. August 24-The prospects of peace seem desperate, but they are not hopeless despite the prevail ing pessimism. There is still chance and the forces working for peace are continuing their labors. The President failed twice. but he Is fighting on. The result of Ambassador Meyers au- dience at Peterhof yesterday was un- satisfactory, but at least ittwas not a re- buff. It left the door open and within a few hours after the receipt at Oyster Bay of MT Meyers account of his audi ence the President had sent a new ap- peal through M. Witte, who received 1t from MT Peirce about 3 o'clock this morning. The Emperor had already In effect declined the proposed compromise offered by Japan. He had refused 1t be- cause under a disguise Japan offered to withdraw the article asking remunera- ton for the cost oof the war on the con dition that Russia repurchase from the military possession of Japan the northern part of Salhalln a q fixed price of ,200.- 00O,0Oo yen, the estimated .frais de guer- re-" Every message received from Pe- terhof, including tbose that came early today, was inhexible upon that point.
 Bitter Pill to Swallow.
 Had Japan not inserted the sum and had that been left for future adjustment the proposition would undoubtedly have proved more palatable. And the Asso- ciated Press Is in a position to state that the divergence in the compromise as suggested by tho President and as offered by Japan at the coferenee which was mentioned in these dispatches last night. touched this very point The President did not suggest any price or the fixing of price, and II is believed, although this cannot be affirmed, that his latest effort is to secure the consent of the En- porer to agree to accept the Japanese proposition with the amounst subject to future adjustment by an arbitration board or otherwise.
 According to the Japanese NJ IYItta has already offered to divide Sakhalin. If the purchase of Sakhalin was placed upon n purely business basis the follow ing few lines from the authorized state ment of the Russian position. given to the Associated Press last night should be borne in mind:
 What Japan Should Do.
 All that Japan does Is to Join tha question of Sakhalin with that of n cash payment, and to insist upon war costs under the name of purchase money The transaction is fictitious and the terminoi- ogy misleading. If what Is proposed be in truth purchase and sale, 1t should be treated as such; and therefore should Russia decline to buy tho territory, Japan should keep 1t and conclude peace on the basis of the concession already made"
 Japan, 1t is believed. would make tho further concessions suggested if Emperor Nicholas would commit himself to this solution. This statement Is based upon the words of the Japanese authority most competent to speak. Wben asked if 1t was correct as reported that the Japanese had said their last word and that all hopa was over, he replied:
 NO, we have not declared our proposi- ton of Wednesday was our irrcdncibIe minimum. We are not assuming a threat ening attitude This Is not tho way 10 make peace"
 But the plenipotentlaries themselves no longer control on either side The ne- gotiations have passed from their hands to their principals at Peterhof and Tokio.
 Emperor William Balks Game.
 Most persistently the report continues to be circulated here that Emperor Wil- liam has been one of the main obstacles to peace; that while ostensibly in sym pathy with the Presidents efforts he k Emperor Nicholas not to yield.
 The foundation for this belief is the Tact which appears fully confirmed that 'i. Ni'i' . ihSfucuoHs were Inude more imperative and intransigeant upon N,e question following Emperor Williams meeting with the Russian Emperor in the Gnlf of Finland. Beyond this no evidence Is offered. Ii is significant that NJ. yWit,a made fl a point tonight to express his disbelief in the report from St. Peters burg which caused considerable conster nation here that Count Lamsdorff had au thorized Reuters Telegram agent to de- clare that Russia under no circumstances would pe-y contribution either direct or indirect, or make a cession of territory M. Witte said he could not Imagine that Count LamsdorfY could have such q statement without tn forming him (Witte).