The Birmingham age-herald., 1905-08-10
.P[SS|M|SM AT
 PORTSMOUTH First Meeting is Hs|d by the
 Peace EnVOyl $ASIST ON BIG INDEMNITY 
Russia, It Is Believed, Will Be Just as Firm In Refusing to Pay-Envoys to Meet Again This
 Morning.

Portsmouth. N. H., August 9-With the probability that Baron Komura will to- morrow reveal to the Russian plenipoten- tiaries the terms upon which Japan Is willing to conclude peace, opinion as to the outcome among those who are con gregated here to watch the proceedings has become decidedly pessimistic. This is due to the growing conviction that Japans conditions will not prove as mod crate as were at one time anticipated, and especially in the matter of indemnity, may preclude the possibility of their ac ceptance by the Russian envoys as basis of negotiation.
 The firm attitude of M Witte in private conversation against the payment of an mating from Japanese quarters that stiff war contribution approximating the cost of the war, variously stated at from seOo, ,OO0000 to ss00, 900 900, constitutes one of Japan's demands. indicates a wide if not an irreconeilable difference between Ja- pans irreducible minimum and what Rus sia Is prepared to accept.
 Admit No concessions.
 Upon the question of the payment of a large indemnity the instructions of the Russian plenipotenllaries are believed to admit of no concessions, although 1t is possible a certain compensation in kind might be arranged. For instance, 1t is suggested that for the relinquishment of the island of Sakhalin, now potentially in Japan's hands, the possession Of which by Japan would give her command of the whole Liberian Littoral, Russia could with propriety pay large sum.
 Gloomy foreboding, however, may be premature at this juncture, as every thing indicates the plenipotentiaries unon both. sides are sincerely desirous of con cluding treaty of peace.
 The firsting meet of -plenipotentiaries today was of an entirely informal char acter, so informal in fact that Baron Komura did not bring his letter of ere dence to the Portsmouth navy yard, whereas M. Mitte was armed with the original document In Russian setting forth the powers conferred upon him. ana also with translation of the document. The latter he read. Later In the after noon, however copies of the credentials were informally exchanged In order that they might be examined before the meet ing tomorrow 1t Is known that the ere dentials differ slightly. In exactly what respect could not be ascertained tonight, but the Associated Press correspondent IS assured both by the Japanese and Rus sian emisaries that the difference IS not essential. and constitutes no obstacle to the official opening of the negotiations Indeed. the President was officially in- formed tonight that the credentials were full ample and satisfactory to both sides.
 Hold Two Daily Sessions.
 Ii was decided today to hold two daily sassions. one in the morning, beginning at e,3o o'clock and one in the afternoon, bea,nning at o'clock To avoid delay and give the plenipotentiaries ana deie- gates time for consultation between ses- sions if has been arranged that luncheon will he served at the navy yard, and the enyoys upon leaving their quarters In the mornine will not return until the after noon session adiourns. Three secretaries for each side will be in attendance to draw up the protocols of the meeting which will be written in both Engllsh ana French. The French text, however III ease of dispute will be accepted Tn evi. dence daire fob. The official versions or todays meeting given out by each siue,  accounts indicate that while everything ma ssed off amicably, considerable reserve was displayed upon both sides.
 paron Komura. whom Mir Witte hao u,at in st Petersburg during the for mer's service as Japanese minister tnere' was easantly greeted by the chiei Rus sian envoy in French. but the baron was obliged to shake ms heao anu 'uih .n sis seeretary, MT. Honda, who ex- nIa;ned that Baron Komura had forgotten inc little French he knew while in St.
 W-hije the Russian plenpotentiaries ex- meet the Japanese to present the Japanese terms immediately upon the official ex- change of credentials tomorrow, they au- init they are In the darK. Baron hoinura and his colleagues decline to give any in- t,,nation of their course of procedure.
 p,,rsuine the tactics which they have oonstantly followed in all their diplomatic and military operations, they are care f,,Ilv puarding all their plans regarding the present meeting.
 Done In Good Faith.
 There was some disposition today to att tribute Baron Komura's forgetfulness in mt bringing his credentials to the meet ing to a desire to spar for time and for that reason some doubt was expressed whether the Japanese would show their hand tomorrow, put iiic IiuSsidn tHfDyS did not question Baron Komura's good faith. and frankly say It was due to the misunderstanding.
 This evening the amenities were ob- served by q general exchange of cards. MT. Witte. Baron Rosen and his suite sending theirs through the hotel office while the cards of the Japanese mission were left at the doors of the members of the Russian mission by little Japanese messenger boy.
 The Japanese and Russian newspaper correspondents have broken the ice and have begun to fraternize. It Is perhaps significant that the correspondents on both sides are sending to their respective homes dispatches of anything but an op- timistic character. In the opinion of the Russians, the emperor's manifesto pro- mitigating the national assembly protact will materially strengthen the position of the Russian envoys by relieving the in ternal situation.
 The plenipotentiaries through M. Naho- koff. who assisted at today's session has issued this official statement:
 Official Statement Issued.
 "The first meeting took place this yNftta Dur<- ~--'~