The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-08-19

the cost to which she has been put to prose-
cute the war and for the Limitation Of Rus
sla's naval strength In the Far East are
the rocks which threaten the ship Of peace
with It's two strangely aSsorted crews.
II all that Is being said tonight In the
lobby Of the Wentworth Is to be believed,
the ship is already on the rocks, with no
hope Of salvation. The ENJOYS have utterly
failed to agree upon these two points OF
dispute. There are other notes Of d.
vergence," but indemnity and limitation
overshadow them.
The question OF the cession OF Sakhalin
Island to Japan has not been officially dis
posed Of, but It will be adjusted without
diniculty II an agreement is reached upon
the more important subjects.
THE INTERNED SHIPS.
The same applies to the matter Of the
Russian warships interned at neutral
ports, which Japan demands as prizes Of
war. The basis OF agreement upon this
point has been found in the fact that Japan
has not insisted upon the possession Of all
her enemy's war vessels now In the custody
Of neutral nations, but only those which
had participated In engagements and were
obliged to take refuge in friendly ports to
save themselves from capture or destruo-
ton.
Among the vessels In this limited category
are the three cruisers Of Rear Admiral
Enquist's squadron which sought safety
in Manila Bay after they had sustained
serious injury In the battle Of the Sea OF
Japan.
Under the Japanese proposal the cruiser
Lena, now informed at the Mare Island
Navy Yard, near San Francisco, and
other Russian vessels which placed them
selves under the guardianship Of the Chinese
Government in the earlier stages Of the
war are not claimed.
The Japanese demand for fishing rights
in the waters Of Siberia, opposite the island
Of sakhalin. was disposed OF to-day, the
Russian ENJOYS conceding what their oppo-
nents sought.
This then leaves only the demands re-
lating to indemnity and the limitation Of
Russian naval strength as formidable OBJ
stacles to be overcome before peace can
be restored. although the Cars mission
aries contend that sakhalin can be added.
JAPAN's WISH NOT STATED.
The Russians maintain a. stoutly as ever
that they will not pay a penny to Japan,
but they probably would Consent TO
reconsider that position II the Toxic Gov
eminent would modify its attitude by
suggesting a compromise on a reduction
Of prices. At least that is the feeling hero
in Portsmouth. where one hears much that
seems to bear the earmarks Of authority,
but whose source cannot be traced.
When the indemnity proposal was under
consideration by the conferees the point
was never reached where an estimate was
submitted OF the amount Russia would be
required to pay II she yielded to the indem-
nifty demand. Most Of the discussion was
general, the Russians protesting that pride
and honor would not permit them to accept
this humiliation and the Japanese with
exasperating and consistent complacency
maintaining that they could not recede.
There the matter rested.
Most OF to-day's two sessions were
occupied in fighting over the demand for
the Limitation Of Russia's naval strength
on the Pacific. With all the eloquence at
his command Mr.. Witte asserted that his
Government could not and would not
permit itself to be so humbled In the eyes
Of the world as compliance with this condi-
ton Of Japan would require. He offered,
however, slight concession. He said that
Russia would be willing to make declara-
ton that for limited period she would
not increase her naval forces In Far Eastern
waters, but he declared that she would
not consent to be bound by q pledge Of
that character that would exist for all
time, as the Japanese desired.
Baron Komura and Mr.. Witte were obdu-
rate. They chung tenaciously to a COM
DlcU6 COIupll6uCo Wlth stsO AOCVoi VI Suoh
condition and refused to accept any sugges-
tions OF compromise.
The usual mote Of divergence was re-
corded when the ENJOYS found they could
not agree.
JAPAN MAY HAVE SURPRISE IN STORE.
There Il some reason to hope that the
Japanese will make concessions rather
than see the conference end disastrously.
This Information comes at second hand, but
1t Is regarded as reliable. II Is said tonight
that Baron Komura and Mr.. Takahira
have already recommended to the Toxic
Government that the Japanese position be
modified on certain points. They have
apparently exhausted their present powers
and must await new instructions before
changing the position they have assumed
upon every point In dispute.
In some quarters there has been feeling
ever since the Portsmouth conference
got under way that the Japanese had a
surprise in store. That their original de-