The daily morning journal and courier., 1905-08-21
ARBITRATION I!
(Continued from First Page.)

 couragement is given. Baron De Rosen reached here after an all night ride from Oyster Bay shortly before noon, and immediately went into conference with M. Witte. They remained closeted together for almost three hours, during which the whole situation was review ed. Baron De Rosen communicated to his chief the presidents message and it was transmitted to the emperor, to- gether with M. Witte's recommenda- tion. No clew to the nature of this rec ommendation has transpired. But it can be stated that M. Witte, no matter how he personally may view the prop osition, is distinctly pessimistic as to the character of the response which will come from St. Petersburg. {
 To a confidential friend this after noon he offered. little hope of a change in the situation. The Japanese, it is firmly believed cling to the substance if not the form, of their demand for re- muneration for the cost of the war"
 Perhaps they Are willing to decrease the. sum asked, but substantial com pensation, under whatever guise it is obtained, they decline to relinquish. And they are also firm on the cession of Sakhalin. By the transfer of the southern branch of the Chinese Eastern railroad, first to Japan for relinquish- ment to Cfina5 payment for the main tenance of the Russian prisoners, and the surrender of the Russian warships, 1t is possible to figure out a total trans G.. ko Ta s,3 op about $250,000000, But this is the limit The Japanese as usual are very reti- cent and very quiet, and it is impossible to obtain from them the least indica-> ton of this view of the change In the situation produced by the presidents action.
 It is taken for granted that the pres ident's appeals were made to Japan as we'll as to Russia, but the Japanese side of the negotiations looking for a compromise is almost completely in the dark. It is assumed that Baron Kane ko was, able to explain the Japanese views of the president. If the president is successful with Russia it may be that he must then turn to Japan.
 That would be the natural course if he has suggested to Russia what he regards as a fair compromise and has undertaken, if Russia accepts, to use his influence to induce Japan to accept. But 1t is now probable that he was able to assure M. Witte in advance of Jap- ans agreement to accept. Neverthe- less MT. Takahira to-day spoke as if he might be called to Oyster Bay. He would only say positively that he had not yet received a summons.
 The Japanese view of the situation authoritively ut rather humorously stated thus:
 "The result will be known soon It is useless to speculate. As well for the physician to give his opinion of the sex of the unborn infant. When the child is born we will be able to tell whether it is a boy or girl. Emperor Nicholas decision upon which the fate of the conference seems now to hang will, according to the best informed Rus- sians depend upon conditions at home and these conditions they do not believe are propitious. The two big factors are the internal conditions and the re- ports from the front as to the military situation. The former has been ame-' liorated by last Saturdays manifesto and the character of the reports receiv- ed by his majesty from Manchuria are known to be accordingly good. General Linevitch has expressed absolute confi- dence in victory and since the confer- ence began he and his generals have not only treasured his majesty that the army was never in better condition but they have actually sent messages to M Witte imploring him not to make peace, They demand an opportunity to retrieve the "honor and prestige'' of the army and in a country where the | army is the bulwark of the government the wishes of it's generals are not light ly to be disregarded by their sovereign
 Not only to:lnake peace but to pay zI h