The Montgomery advertiser., 1905-08-29
Important Development is
 Expected Today.
NEW COMPROMISE BASIS
Komura Has New Proposition
 to Submit.
Believed That Japan Will Waive In- demnity Question and Leave sakhalin Purchase Price to
 Board of Arbitration.

row morning Baron Komura. acting upon instructions received from Tokio as result of today's meeting of the cabinet and Elder Statesmen" under the direct presidency of the Emperor of Japan. will submit to NJ. Witte new basis of compromise and that compro- mise. 1t Is firmly believed tonight, will insure peace.
 The revelation contained in the Asso- cia.ed Press exclusive announcement today that Japan had already informed Emperor Nicholas that Japan was ready to waive the question Of indemnity and submit the price to be paid for the northern half of the island of Sakhalin to the judgment of a mixed commission, but prepared the way for, Japan's back down upon the main issue. The an- nouncement had been the sensation of the day. It had met with denials high and low. 1t was decided to be fmpos- sible. incredible. The Japanese declin- ed to admit It and the Russians said they had no confirmation. M. Witte intimated strongly that St. Petersburg had not Apprised him of any such action by the President. There was even dis position to ridicule the idea of arbitrat- ' ing the price of half of the island. Nevertheless. on all hands it was admit ted that if Japan took this position the ground was cut from under Emperor Nicholas.
 NJ. Witte by cOnsummate skill in concedinE all the demands of Japan in- vo1ving the real issues of war. had ma nouvred his adversaries into position where, unless they abandoned the claim for indemnity, they could be held re- sponsible for continuing the war for money.
 The Tables Turned.
 The Japanese, by now foregoing the indemnity, practically turn the tables on Russia and shift the burden back to her shoulders II she does not consent to submit minor issue to the impartial 1udsment of tribunal M. Wttte pub liciy dissents vigorously from the prop osition and there will still be a str dggle with Peterhof, but if Japan tomorrow agrees to formally renounce all claims for direct or indirect compensation for the expenses of the war the big stum- bling block to peace is out of the way.
 Everything will depend upon the form in which the proposal is submit ted Should the renunciation be so cou- pied with the other proposition that Russia could claim 1t was still only disguised demand for tribute. the gulf might only be narrowed. not bridged. All the private advices that reach the Russian mission from St. Petersburg in- Ciicate that the military party is bel- licosely insistent that Linevitch be giv- en a chance and that negotiations be broken off.
 M. witte feels the pressure of this sentiment and as a man of ambition he may not feel that he can afford to lay himself open to the charge that he Is out of hand any proposition involving the payment of tribute. He need not consult his imperial master. He Is a man of inspiration and he is quite ca- temporizfng with the situation. He has power under his instructions to reject pable of taking the ground that the Japanese proposition savers of blood money" and refuse even to accept it for transmission to St, Petersburg.
 But such a stroke is not expected. M. witte. knows that public opinion both in America and Europe. as well as In Russia, would condemn him if he broke off the negotiations just as the way was opened for a possible accord.
 Work Beneath Surface.
 While apparently the real negotia- tions leading up to today's denouement were conducted by the President at Oyster Bay, acting through Baron Kan eko on the one hand and Ambassador Meyer on the other, it is now believed that much has been going on beneath the surface here. Another indication of the sudden turn in the events was h Vanderlip, vice-President of the City National Bank of New York. He reg istered 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. Vanderip said he was only interested" in the situation. He had known NJ. Witte several years ago when he was at the head of the Russian finance Ministry and had also seen him in New York upon his arivaL He had talked with him about the situation and outlook in Russia, the state of the negotiations, etc. He evaded inquiries as to wheth er~the subject of loan had been dis cussed but. considering the importance 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 loan, 1t is fair to consider that the question of finance was not ignored.
 Some of the Japanese were greatly excited tonight over the report that the Tokio Government had surrendered on the question of indemnity, declaring that if true 1t would cause tremend- ous outburst of popular feeling in Ja- pan.
 Assistant Secretary Peirce received a long cipher message from Oyster Bay tonight