Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1905-08-17
Article on Indemnity
Shows Both Sides
Stubborn.
NEITHER WOULD BUDGE
Agreement Abandoned and
Next Section Taken
Up.

Portsmouth. Aug 1.-THE peace
conference began at $50 this morn
ing. The ENJOYS were served with
breakfast at the naval stores building
preceding the session.
The peace plenipOtentiaries adjourn
ed for luncheon at 1:30. having spent
the entire morning discussing article
nine, which, it is believed, includes the
question of Japan's reimbursement for
the cost of the war.
No agreement was reached and the
commissioners temporarily laid it aside
and proceeded To discuss the articles
that follow it.
Absolute Deadlock ON Article Nine.
The mornings discussion of article
nine developed an absolute deadlock.
Both sides were obdurate. Neither
would bulge or yield an inch. An
agreement being found to be impos-
Sible, the plenipotentiaries decided to
spread upon the records their respect
i've views and proceed 10 the consider
alton of article 10, which provides for
the surrender to Japan of Russian
warships interned i'm far eastern wa
ters. This article was being debated
when the recess until 3 was taken.
Powers Behind the Conference.
England is putting the thumbscrews
on Japan. while Germany and France
have Russia in a corner arguing with
her and threatening. President Roose-
welt is in close touch with the situation
and is pleading for peace. In addition
to all these powerful influences the
money kings of the world are sending
word to Portsmouth that the fighting
must end. There is at this writing no
fair prospect that if the envoys settle
10 of the disputed questions, leaving
the cession of Sakhalin island and the
indemnity unsettled and completing a
treaty to this point, that the home gov
ernments of the two countries may
reach an understanding on these points
even after the conference here has ad-
ioumed III a deadlock.
There is no reason to think from the
attitude of the Russians or from their
conversations that they will rccede
from their position of not granting an
indemnity and of ceding no territory.
NJ Witte said yesterday the negOtia-
tions would be over by Saturday of
The Japanese will say nothing. They
have said nothing since they have been
in Portsmouth Il is known. however,
that they have not entirely given up
the idea of getting treaty, however
certain the Russians may be that the
war must continue.
Sections and s of the Japanese
terms were completed yesterday. Sec
ton Z was agreed to in principle and
section was adopted unanimously. NJ.
Sato explained that the arrangement
on section is that the terms as stated
by Japan are correct, but that the
phraseoIogy must be adjusted To suit
what the Russians claim are the ext
gencies Of the situation.
The Chinese Railroad.
Both of these sections refer TO the
railroads. Section deals with the en-
tire Chinese Eastern railroad, and sec
tfon s with that specific control of that
part of the railroad from Harbin to
Port Arthur The arrangement is that
the Japanese shall control the railroad
from Port Arthur TO within 10 miles
of Harbin and that the Russians shall
have limited control of the railroad
straight across TO NlailVostok- NO
will give Russia access 10 NladiVostok.
but it is expected that policing Will be
done by Chinese, and it is known that
Japan demands some rights even here.
Que-tions Undetermined.
This action leaves FIVE Questions un-
determined. the cession OF Sakhalin r.
land. which is section ,. and which
was passed over. and sections 8, 10. II
and 12. which are the limitation OF
Russia's naval power in the east, the
cession to Japan Of the interned ships
the disposition of the improvements at
Daluy. Harbin and Port Arthur and
the indemnity II is quite likely that
there will be 10 difficulty in settling
three of these questions. leaving the
great struggle 10 come on the lnaeih-
nitv and on the return Of Sakhalin.