The Birmingham age-herald., 1905-08-29
IS NOW BELIEVED THAT
 END IS NEAR AT HAND
M. Witte Has Played . Clever Game, But 1t Appears That He Will Be checkmated By the
 Japs.
Portsmouth. N. H., August S.-Assist- ant Secretary Peirce received a long ci- pher message from Oyster Bay tonight.


 Portsmouth, N. H., August 2S.-Tomor- row morning Baron Komura, acting upon instructions received from Tokio as result of todays meeting of the cabinet and "elder statesmen" under the direct presidency of the Emperor of Japan, will submit to M. Witte & new basis of com promise, and that compromise, 1t is firm ly believed tonight, will insure peace.
 The revelation contained in the Asso- ciated Press exclusive announcement to- day that Japan had already informed Emperor Nicholas through Ambassador Meyer that Japan was ready to waive the question of indemnity and submit the price to be paid for the northern half of Sakhalin to the judgment of a mixed commission but prepared the way for Japan's back down upon the main issue. The announcement has been the sensa- ton of the day. It had met with denials high and low. It was decided to be im- possible. incredible. The Japanese de- clined to admit it, and the Russians say they had no confirmation. M Witte in- timated strongly that St. Petersburg had not appraised him of any such action by the President There was even a dispo- sition to ridicule the idea of arbitrating the price of half of the island. Never
 
 Japan took this position the ground was cut out from under Emperor Nicholas.
 How Game Was Played.
 M Witte, by consummate skill in con- ceding all the demands of Japan involv- ing the real issues of the war, had ma neuvered 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 Japanese by now foregoing the demand for an indemnity practically turn the tables upon Russia and shift the burden back to her shoulders if she does not consent to submit a minor issue to the impartial judgment of tribunal. M Witte publicly dissents vigorously from the proposition ,and there still will be a struggle with Peterhof, but if Japan to- morrow is willing to renounce direct or indirect compensation for the expenses of the war the big stumbling block to peace Is out of the way.
 Everything will depend upon the form in which the proposal is submitted Should the renunciation be so coupled with the other proposition that Russia could claim 1t was still only a disguised demand for tribute the gulf might only be narrowed not bridged. All the private advices that reach the Russian mission from St. Pe- tersburg indicate that the military party
 
 given chance and that negotiations be broken off.
 Witte Feels Pressure.
 M. Witte feels the pressure of this senti- ment and as a man of ambition he may feel that he cannot afford to lay him self open to the charge that he is tenn porizing with the situation. He has power under his instructions to reject out of hand any proposition involving the pay ment of tribute. He need not consult his imperial master. He is a man of in- spration. and he Is quite capable of talk ing the ground that the Japanese propo- sition savers still of blood money' and refusing even to accept 1t for transmits sion to St. Petersburg.
 But such stroke Is not expected. M Witte knows that public opinion both fl 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.
 While apparently the real negotiations leading up to todays denouement were conducted by the President at Oyster Bay, acting through Baron Kaneko, on the one hand and Ambassador Meyer on the other, 1t Is now believed that much has been going on beneath the surface here Another indication of the sudden turn In the events was the arriva
 toIlSut OI fTdIh V. Ndhuclip, Sitc pi cSl- dent of the City National Bank of New York He registered at the hotel as John Howard" and after dinner went to M Witte's room and remained there one hour.
 vanderIIp Non-committaI.
 When asked his mission MT. Vanderlip said he was only "interested' in the situation. He had met M. Witte several years ago when he was at the head of the Russian financial ministry, and had also seen him in New York upon his arrival. He had talked with him about tie situation and outlook in Russia. the state of the negotiations. He evaded in Quiries as to where the subject of loan had been discussed. but considering the importance of the financial group' of which the City National bank is mem- Der, and the fact that the bank took a portion of one of the Russian loans, 1t is fair to assume that the question of finance was not entirely ignored
 Some of the Japanese were greatly ex- cited tonight over the reports that Tokio government had surrender on the subject of indemnity. They refused to believe it, saying that if trxe 1t would cause a tre- mendous outburst of popular feeling in