The daily morning journal and courier., 1905-08-29


 That it Will Insure Peace-Some Dis
 position to RidicuIe the Idea of Arbi-
 trating Price to be Paid for the
 Northern Half of sakhalin, Which is
 Reported to be Part of Japan's La-
 test Proposition.
 Portsmouth, N. H., Aug. 2S.-To-mor- TOW morning Baron Komura acting up- on instructions received from Tokio, as a result of to-day's meeting of the cab inet ond elder statesmen under the di- rect presidency of the emperor of Japan, will submit to M. Witte a new basis of compromise an dthat compro- mist, it is firmly believed tonight, will insure peace. The revalation contained in the Associated Press exclusive an nouncement to-day that Japan had all ready informed Emperor Nicholas through Ambassador Meyer that Japan was ready to waive the question of in- demnity and submit the price to be paid for the northern half of Sakhalin to the judgment of mixed commission but prepared the way for Japans back down upon the main issue. The an- nouncement had been the sensation of the day. It had met with denials high and low. It was declared to be impos- sible, incredible. The Japanese declin- ed to admit it and the Russians said they had no conformation. Witte inti- mated strongly that St. Petersburg had hot appraised him of any such action by the president. There was even a disposition to ridicule the idea of arbi- trating the price of half of the island. Nevertheless on all hands it was ad- mttted if Japan took this position, the ground was cut out from under Emper- pr Nicholas. M. Witte by consummate Ikill in conceding all the demands of Japan involving the real issues of the war had manoeuvred his adversaries Into a position where unless they aban- aoned the claim for indemnity they could be held responsible for continu- Ing the war for money. The Japanese by now foregoing the demand for in- 1emnity practically turn tn etables up- Dn the Russians and shift the burden back to her shoulders, if she does not consent to submit a minor issue to the impartial judgment of a tribunal NJ Witte publicly dissents vigorously from the proposition and there will still be a struggle with Peterhof, but if Japan tomorrow 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 submitted. Should the remuneration be so coupled with the other proposition that Russia could claim it was still only a disbuised demand for tribute, the gulf might only be narrowed, not abridged.
 All the private advices that reach the Russian mission from St. Petersburt in- dicate that the military party is belli- cose, insistent that Linevitch be given 8 chance. and active in its nsstence that negotiations be broken off. Even M. Witte feels the pressure of this sen timent and as a man of ambition he may not feel that he can afford to lay himself open to the charge that he is temporizing with the sitution. He has power under his instructions to reject out of .hand any proposition involving the payment of kopeck of tribute. He need not consult his imperial master. He is a man of inspiration and he is quite capable, if the Japanese proposi- tion tomorrow savers still of "blood money to refuse event otaccept 1t for reference to St. Petersburg.
 But such a reckless stroke is not ex- pected. M. Witte knows that public opinion both in America and Europe, as well as Russia, would condemn him if he broke off the negotiations just as the way was open for possible accord.
 While apparently the real negotia- tions leading up to to-day's denoue- ment were conducted by the president at Oyster Bay acting through Baron Kaneko on the one hand and Ambassa- dor Meyer on the other it is now be- lieved that much has been going on beneath the surface here. Another in- dication of the sudden turn in the events was the arrival here tonight of Frank A. Vanderlip, vice president of the City National bank of New York. He registered at the hotel as John Howard" and after dinner went to M. Witte's room and remained there one hour. When asked his mission Mir Vanderlip said he was only Interest ed in the situation. He had met M. Witte several years ago when he was at the head of the Russian finance min istry. and had also seen him in New York unon his arrival. He had talked with him about the situation and out look in Russia, the state of the nego- tiations, etc. He evaded inquiries as to whether the subject of a loan had been discussed, but considering the im- portance of the financial group" of which the City National bank is a member and the fact that the bank took portion of one of the Russian loans, it is fair to assume that the question of finance was not entirely ig- nored.
 STUMBLING BLOCK REMOVED.