The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1905-08-17
ARTICLE 7 or RusSO-JAPANEsE
PEACE TREATY CAUSES PRO-
LoNcED DISCUSSION.
aussIA's POSITION ABLY DEFENDED
ASSERTS PROPERTY is LARGELY
PRIVATE AND NOT SUBJECT
TO coNFiscATioN.

Portsmouth, N. H., Aug. 17.-Both
sessions Of the Russo-Japanese peace
conference were occupied entirely In
discussion of article Z. which refers
to the cession Of the China Eastern
railroad to China. This road runs
south from Hardin to Port Arthur and
Dalny. with spur to Newchwang.
where It connects with the 6hanhat
kwan Tientsin road. This article was
cond!tionally accepted by the Russian
reply. but agreement to 1t was bound
up with considerations involving the
fate OF the whole negotiations. Russia
will not admit the Japanese conten
tion that the road Is wholly q govern
ment institution. as all the shares OF
the railroad corporation are owned by
the Ausso-C Chinese bank The govern
ment's interest in the road, however,
ie not denied, but 1t Is urged that so
Tar as It is private property 1t is nor
conhscable
The Russian contention is backed
up by evidence. Mr.. Berg. the vice
director and attorney OF the Russo
Chinese bank, Is here to protect the
interests OF the bank. Nevertheless.
In the long run. Russia. It can be re-
garded as certain, Is prepared to give
UP the road, remunerating the Russo
Chinese hank II necessary, as with the
loss cl Port Arthur and Dalny and
the evacuation OF Manchuria Its raison
le etre for strategic and military pur
p0Oes ceases. It's surrender to China,
however, involves large monetary
profit for Japan. which can properly
claim remuneration from China for
the restoration Of the road, the re-
building OF the bridges and the chang
ing In tho gauge It will be for China
aud Japan to arrange this, but how.
ever adjusted the money which Japan
will obtain might be q partial re
muneration" for the cost Of the war
which she demands from Russia and
constitutes, perhaps. the line OF ulti
mate compromise II treaty eventually
Is signed. It Ia quite likely, there.
fore that agreement on the article
after discussion will be held In abey
ance until later and will be settled in
the Anal exchange Of views.
Crisis Almost u Hand.
From the very nature Of the articles
yet remaining to be considered It IS
certain that the crisis In the negotia-
tt0ns Is almost at hand: All that re-
mains seems more or less mutually
interdapendent. II Japan. rs Is gen.
orally believed, is ready to yield ON
the question Of limiting Russia's sea
power In the Far East and the sur.
render OF the interned warships It
would only be In return for 9 satisfac-
tory agreement on the issues Of SAX.
halin and indemnity.
The flve articles so far agreed upon
BY the peace envoys are - follows:
first Recognition OF Japan's pre-
poai.ierating influence" In Korea. etc.
second Mutual obligation TO evacn.
ate Manchuria, Russia to retrocede to
China Al special privileges. etc,
Third japanese obligations to re-
store the sovereignty and administra-
N4lon Of China In Manchuria.
Fourth Mutual obligations to re-
epect the territorial and adminiatra-
tire Integrity Of China and the prin-
ciple e the "Open door"
sixth The surrender OF the Rus
Sian leases to the LjaOtung peninsula,
including Port Arthur, Dalny and the
Dlcndo ana Elliott islands.