The free lance. (Fredericksburg, Va.) 1885-1926, 1905-08-26
N0CNANcE X DEADLOCK
Prospects For Peace Seem Desper-
ate, But Not Hopeless.
RUSSIA WON'T PAY INDEMNITY
President Roosevelt Urging Mikado
and Car to notwithstanding
Now In the Hands Of ST. Petersburg
and Toxic.

Portsmouth. y. H.. Aug 2o.-SiN
cablccIams have Dc,l received b. MI.
Wiuc nom ST Pet rsburg. Nj came
from Count lamsGorl and all were
opposed 10 The Japanese COMPROMISE
proposition as presented AT Wedh'S'
DAYS meeting. However. 1t Is posi-
lively stated taat the cablesrams an
nounce that direct pour parlcrs are
now IN progress between Emperor
Nicholas and President Roosevelt
The prospects OF peace seem dos
perate. but they are not hopeless de-
spite the prevailing pessimism. lher'
is still n chance ana the forces worL-
inr for peace are continuing their
labors The president failed twice. but
ne il fighting ON. The result of Am
bassador Meyers audience az Pe'erNol
was unsatisfactory. but M least II was
not a rebuff. 10 LETT the door open. ana
within few hours after the receipt
nj OYSTER Bay of Mr. Meyers account
of his audience the president had sent
a new appeal through Mr. Nltt'' VINO
received II from Mr.. Pcircc yesterday
The emperor had already in cncct de-
clined the proposed compromise OIL
fered hy Japan lie had refused u De-
cause under a disguise Japan offered
to withdraw the article asking remun
Grafton for the cost of the war on con-
dition that Russia re-purchase from
the military possession of Japan the
northern part OF Sakhalin at fixed
price is 100000 yen-the estimated
"irais de- guerrc.
Tne latest developments clearly In
dictate that Russia will never consent
10 the payment Of an indemnity IN
any form. represent Russia's last word
with reference TO the principle OF
monetary compensation and the eX-
penses OF the war.
Every message received from Pctor-
hof was inneNble upon that point
Had Japan not inserted the sum. had
that been left for future adjustment
the proposition would undoubtedly
have proved more palatable And the
Associated Press is in a position to
state that the divergence In the com
promlse as suggested by the president
and as offered by Japan az the con
ference touched this very point Ih'
president did not suggest any price
or the fixing of a price and n is bee
nevcd. although this cannot bee con
0rmed that mis- latest effort Is 90 see
cure the consent Of the emperor %
agree 10 accept the japanese prop1-
sition. with the amount subject 10 tu-
ure adjustment Boy an arbitral board
or otherwise According % the Japa-
nose Mr. Witte has already offered 70
divide Sakhalin II the r. purchase OF
Sakhalin was placed upon a purely
business basis. the following few lines
from the authorized statement OF the
Russian position given 10 the Asso-
clatcd Press should be borne in mind
All that Japan does IS 10 join the
question of Sakhalin with that OF
cash payment and 10 insist upon war
costs under the name OF purchase
money. The transaction is fictitious
and rhe Technology misleading II
what Is proposed be in truth a pur-
chase and sale IL should be treated
as such: and therefore. should Russia
decline 10 buy the territory japan
should keep it and conclude peace on
the basis of the concessions already
made
japan. It IS believed. would make
the further concession suggested II
Emperor Nicholas would commit him
self 10 this solution. This statement is
based upon the words Of the japanese
authority most competent to speak.
When asked If It was correct as re-.
ported that the japanese had said
their last word and that all hope was
over he replied:
NO. we have not declared our propo-
sition Of Wednesday was our irreduci-
bic minimum. We are not assuming
threatening attitude That is not the
way to make peace
But the plenipotentiaries themselves
no longer control on either side. The
negotiations have passed from their
hands to their principals at Peterhoi
and Toxic.
Most perslstently the report cOntin-
ucs to be circulated here that Emperor
William has been one Of the main OBJ
stacles TO peace. that while ostensibly
in sympathy with the presidents ef-
forts. he is advising Emperor Nicholas
not to yield. The foundation for this
belief IS the fact. which appears fully
confirmed. that Mr. Whites instruc-
lions were made more imperative and
intransigent after the kaiser's inter-
view with the Russian emperor In the
Gulf of Finland. Beyond this no evil
dence is offered. II IS significant that
Mr.. White made II q point to express
his disbelief in the report from St
Petersburg, which caused considerable
CONSERVATION here. that Count Lams-
dorff had authorized Reuters agent to
declare that Russia under no circum-
stances would pay contribution Ell
Their direct or indirect or make a ces-
sion Of territory whatever. MI Witte
said he could not imagine that Count
Lamsdorff could have authorized such
statement without informing him
(Witte).
According TO competent japanese
authorities. Baron KOmura and Mr..
Takahira are opposed to the waving
Of Japans demand for reimbursement
Of war expenses This authority says:
I'm the conference the japanese con-
. tentioa was that In conceding the ante
bellum demands OF Japan, Russia ad-
mitted either that she was beaten or
that her attitude prior to the war was
untustifed, and in either case Japan
holds that Russia should pay the cost
of the war. Japan feels that Rssia's
talk OF saving her face is hardly rea-
sonable, claiming that her face was
lost when she conceded the ante-bel-
t,-.t Ao.,oodot uyhfch cOnatitutpd the