The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-08-24
lHy the Associated Press.)

Portsmouth, n. H., August pa
long cable message from st. Peters
burg. which is believed to be the Rus
sian reply, arrived about 10 O'Clock
tonight and Mr.. Whites secretaries,
Mr.. Nabul<Off and Mr.. PlancOn. inn
mediately began deciphering it.
Considerable excitement was appa-
rent in the annex where the Russian
HEADQUARTERS are located. Sheet by
sheet the translation was taken to Mr..
Whites room. THE RUMOR Is
THAT 1T is A REFUSAI-A NON
POSSUMUS, A REITERATION OF
THE RUSSIAN POSITION THAT
or HER DESIRE FOR PEACE IN
THE ARTICLES ACCEPTED AND
THAT MORE SHE COULD NOT
YIELD WITH INTEGRITY AND
HONOR.
No confirmation of the rumOr that
Kussia's reply is negative one can
be obtained and it must be accepted
with all reserve. The lights IN the
rooms of Mr.. Witte and Baron ROsen
were burning long after midnight.
Portsmouth, n. H., Aug. 22.-The
Associated Press is now in position
to reveal substantially the suggestion
OF PRESIDENT ROOSEVELT lOI UIcdhlIlS
the deadlock i'm the peace negotla-
tons and rescuing the conference
from failure. His solution would ingen-
iously permit the satisfaction of the
demand for the cost of the war ana at
the same time enable Russia to race
the world with the declaration that
she had not ceded foot of territory
or paid kopeck of war tribute to
the victor The solution is the one
which has heretofore been described
in the Associated Press dispatches as
the natural and logical compromise.
Tersely stated it consists in an agree
ment by Russia to repurchase posses
sion of either all or half of the Island
of Sakhalin now in the military occu-
patton of Japan for a sum the amount
of which if the two countries cannot
agree. shall be decided by some meth
DDS of arbitration hereafter to be de-
termined The purchase money to-
gether with the sum Japan would oD-
tain from the session of the Chinese
Eastern Railroad and the malnten.'
ance of the Russian prisoners in Japan
would. it is estimated, about equal the
amount claimed by Japan as her bill
for the cost of the war. Practically
therefore, the solution offered by the
President involves recession by Japan
upon Article (the CeSSion OF SAX
halin) and recession by Russia upon
AIIlCIG IL oCCAii1 PiSN
tically certain though this cannot De
affirmed positively, that the President
today was able to give Mr.. White sub
stantial assurance that Japan would
be willing to accept such compro-
mise. This is apparently supported
by the authoritative japanese state
ment made to the Associated Press
tonight in the reply to question as
to whether Japan had not decided to
make substantial concessions.
1T all depends upon Russia.
Sensation of the Day.
1t was the Presidents message TO
Mr.. White which caused the sensation
of the day Early in the morning had
. come the official announcement that
the meeting of the conference which
was to have been held today had
been postponed until tomorrow at
$40 o'clock The public reason as
signed was that the protocols for SUD
mission at the sitting had not Deen
completed. But few hours later the
true reason leaked out. j. IL. NC
Grew, one of the stenographers at
tached to the executive ofnceS at
OYSTER Bay, had arrived with COM
munication from the President Iof
the Russian Observation-Disclosures. MI.
Witte and Baron De Rosen had left
the hotel ostensibly for ride in an
automobile to York Beach, but IN
stead had quietly slipped over TO the
conference building at the navy yaru
to receive the message from Asslsldnt
Secretary Peirce. The most elaborate
precautions had been taken TO insure
secrecy, but it leaked out through a
.'tip" from New York which reached
the Associated Press.
From 1890 until 1:1O Mr.. White
and Baron De ROsen remained at the
conference building with Mr.. PIERCE.
All those present decline to make any
statements regarding what TRANSFERRED
at the navy yard. even refusing to ad-
mi that any importance attached to
the matter. Mr.. Witte would only
admit that he had gone to the build
ing ITO send n message" and Baron
DE Rosen and Mr.. PIERCE absolutely
refused to make any statements. Mr..
McGrew took the 1925 train to Boston.
whence according to reports he took
the Merchants limited. after first in
ouiring at the intelligence office for
the connections to oyster Bay. lie