The gold leaf. [volume] (Henderson, N.C.) 1881-1911, 1905-08-24
CHANGES OF PEACE
ARE IMPROVED
President Roosevelt Makes Last Ef
fort to Affect Compromise
ARBITRATION NOW PROPOSED

AhbIIhATlON NOW PROPOSED
Portsmouth, N. H., Aug. 2l.-The
finances Of peace have undoubtedly
Been improved by President Roose-
velt's action in stepping into the
breach in a last heroic endeavor to
Induce the warning countries to COM
promise their "irreconcilable differ
ences," but the result Is still In sus-
pense.
The Associated Press 10 able to an
nounce that the feature of the propo-
sition OF President Roosevelt, COM
municated through Baron de Rosen to
Mr.. Witte. and transmitted by the
latter to Emperor Nicholas, was based
upon the principle Of arbitration.
Whether the proposal contemplates ar.
bitration of all the articles upon which
the plenipotentiaries have failed to
agree OF only upon the question Of in
demnity, cannot be stated with posi-
tiveness, but 1t is more than probable
that it relates only to indemnity or to
indemnity and the cession of the
island of Sakhalin. Neither is 1t pos
sible TO say whether the president has
yet made a similar proposition to ia
pan. Acceptance by both sides would
involve great extension of the prin-
ciple of arbitration as nations have
heretofore declined to arbitrate ques-
tons involving their "honor and dig
nifty" Both Mr.. Takahira and Mr..
Witte in the earlier stages of the con.
ference absolutely rejected the idea
of arbitration, and only yesterday both
reiterated their disbelief In such a So
luton. 1t was noticed, however, that
Mr.. Whites opinion was not expressed
as strongly as it was last week.
The ultimate decision of the issue
has de facto il not de jure passed from
the plenipotentiaries to their princi-
pals, from Portsmouth to St Peters
burg, and perhaps in a lesser extent
TO Toxic. Although there are collat-
eral evidences that pressure, both by
President Roosevelt and neutral pow
ers, including Japan's ally, Great Bri-
tain, whose minister, Sir Claude Mac
donald, according to advices received
here, had q long conference with Mr.
Katsura, the Japanese premier, IL still
being exerted at Toxic to induce ia
pan to moderate her demands, there
is also reason to believe that Presi
dent Roosevelt was able at this inter.
view with Baron de Rosen to practf
cally communicate to the latter'a
senior, Mr.. Witte, Japan's irreducible
minimum-what she would yield but
the point beyond which she would
not go.
And in the Russian camp little en-
eouragement is given. Baron de Rosen
reached here from Oyster Bay and i'm
mediately went into conference with
Mr.. Witte They remained closeted to-
gether for almost three hours, during
which the whole situation was re
viewed. Baron de Rosen cOmmuni
Gated to his chief the presidents mes
sage. and it was transmitted to the
emperor, together with Mr.. Whites
recommendation. No clue to the ma
ture of this recommendation has trans
pired. But it can be stated that Mr.
Witte. no matter how he personally
may view the proposition, is distinctly
pessimistic as to the character of the
response which will come from St
Petersburg.
To a confidential friend he offered
little hope OF a change in the Situa
ton.
The Japanese, it is firmly believed
cling to the substance if not the form
OF it's demand for remuneration fol
"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 upon the ces
sion of Sakhalin. BY the transfer OF
the southern branch of the Chinese
Eastern railroad, first to Japan fo'
REIMBURSEMENT to China, payment fol
the maintenance of the Russian pris
sners and the surrender of the Rus
sian warships. it is possible to figure
cut a total transfer to Japan In money
and property of about $3.50 100000 But
this Is the limit.
In the oral discussion of the terms
Mr.. Witte yielded upon two articles
but substantially the result of the II
| sittings OF the plenipotentiaries hal
only been to emphasize the position
taken by Mr.. Witte in the writer
reply he presented last Saturday te
the Japanese terms. And now both
sides turn to home for the last word
| before the cards are thrown face up
| ward upon the table next Tuesday, fol
the impasse reached by the plenipo
| tentiaries is recognized to be only
diplomatic fiction. II in the interim
fresh instructions are received by
| either side compromise Is yet poss1
bic. But the chances are recognized Il
Be slim. So far as the Russian pleni
| potentiaries are concerned there neve'
was q chance of their yielding both IN
demnity and Sakhalin.
| The cession of Sakhalin without In
demnity was, according to the bes'
inside information, the extreme limit
to which Mr.. Witte would ever con
sent to 20, and the emperor has no
vet given the word even to concedt
that. And suddenly a new factor ha.
beeen introduced which In the opinion
of those most competent to Judge les
sens materially the chances that h'
might do 50, namely, the issuance O
his manifesto granting q popular rep
resentative body to his subjects. Th'
bearings of this historic document,
A Mr.. Witte described 1t q few day
aeo. upon the issue are easily compre
hensible. 1t is bound to ameliorate thu
Internal situation in Russia