Omaha daily bee., 1905-08-29

with the exception OF payment OF IN
demnity, had practically been arranged on
a basis satisfactory TO both sides, but that
Russia would never pay an indemnity. II
the latest proposals of Japan mean that
It valves all claims to indemnity'Of any
kind or description, giving up all idea Of
reimbursement for the expenses Of the
war in any guise whatever and in place
thereof is prepared TO accept for the res
toration to Russia of the northern half
Of 2skhalin, a redemption price to be fixed
by an unbiased commission, this price TO
be determined upon the actual value of
the Island and not TO take into account
Japans war expenses or to carry con-
cealed indemnity to Japan, there Is rea-
son for the assertion that in all proba-
bility Japan's proposal was never under
stood here in this way and for the de-
duction according to the Russian official
statement that the stumbling block 10
peace can be removed and that there ought
TO be a new and promising basis for the
continuance of the negotiations.
Russian Press Is Bitter.
The Sve today says:
The Japanese conditions for peace would
only be acceptable II Japanese fleet was
threatening St Petersburg and a Japanese
army was occupying Moscow. Russia will
not bow to the Japanese yoke to fulfill
the American creditors Of Japan and to
cover himself with glory as a peacenaker,
the intermediary Of its friend, President
Roosevelt. and makes exhorbitant Demands
while the president is striving indirectly to
eXac, the consent Of Ru .sia- After long
and fruitess negotiations It would seem
that we are on the eve of what Russia
has long desired-a great battle between
General Linevitch and Field Marshal
Oyana
kilograms from various centers, including
Riga Windau and Simbirsk. announce the
beginning OF an extensive mobilization Of
army reserve men.
Rumors are current of the impending res
ignation Of General Durnovo, governor gen.
eral of Moscow.
Plan to Increase Army.
4:30 p. m.-Following the Russian re-
verses at Lao Yang, Mukden, the battle
OF the Sea of Japan, etc, earnest and per-
sistent demands were made upon the War
once for army reforms. one result OF which
is that it is now proposed to do away
with officers personal military servants at
the front making the officers an allowance
with which to provide themselves with
servants but doing away with military
servants This will increase the fighting
force by nearly 10000 men,
.... Conference at Toxic.
conference Of the cabinet officers and elder
statesmen adjourned at o'clock this after
noon ana the participants proceeded to a
place where the deliberations were con-
tinued under the presidency Of the emperor.
IL is believed that the decision will mean
continuance OF the. war or peace.
The capital continues exceedingly quiet.
No manifestations have resulted from the
outward critical situation, 51
The public here remains uninformed re-
Earding the latest developments at Ports
mouth. but seems convinced that peace is
hopeless The market reflected this senti-
E1ent. After the opening today prices
sharply declined. Shares OF the exchanges
itself declined 20 yen. the heaviest fall on
the list A failure OF the peace negotla-
tions would be generally regretted, but the
press and all other expressions indicate
widespread preference for a continuance
of the war rather than the acceptance OF
unsatisfactory terms. Underlying this
popular attitude is deep-roQted confidence
thst Field Marshal oyama will defeat
General Linevitch and take Hardin and
that the japanese will completely overrur
the coast provinces possibly greatly lower.
ing the cost OF the operations after the
main Russian army has been defeated and
continue the war for an extended period.
Hope mt Paris.
PARIS, Aug. 2S-The diplomats and Of
fcials today in discussing the prospects
at Portsmouth displayed evident anxiety
Nevertheless there was an impression tha
an agreeable surprise awaits the worlt
when the critical moment arrives fol
tho plenipotentiaries TO give their fina
answer for peace or war. Both OF tn,
belhgerents are considered to be ardentl!
dosirous OF peace, even at the expens'
OF sacrifices The signature Of the amended
alliance between Great Britain and Japan
three weeks ago, is regarded as largely
governing Japans attitude relative to con
eessions. The exact terms of the ney
treaty are not known here, but the diplo
mats are aware that some OF the clause
OF the original treaty have been greatll
modified and that others have been cx
tended IL is probable that Britain, be
fore signing, insisted that hostilities b
concluded as soon as possible and tn
knowledge OF this pressure on Japan,
Is added causes Russia TO hold out wit