The Birmingham age-herald., 1906-09-27
PALMA BACKS UP
 PEACE MAY COME
CONTINUED FROM PAGE L.

at the American legation and made the following proposition, requesting the opin- ion of the commissioners thereon:
 That both sides appoint committees of six to treat for peace, but with the prior condition that the rebels lay down their arms"
 Secretary Taft approved of this with the exception that it was unfair 10 make the rebels lay down their arms before the acceptance by both parties of a formal agreement to abide by the terms of the ultimate decision Senor Dolz returned to the assembly and reported the result of his efforts. During the absence of Senors Montalvo and Dolz the assembly took a l recess.
 Recede From Position.
 At the resumption of the meeting, and after hearing and hastily discussing the views of Secretary Taft, the assembly precipitately receded from it's contention that the rebels must disarm and resolved to notify Secretary Taft that they would appoint d committee of six to meet simi- lar committee from the liberals to nego- tiate peace terms, leaving all points upon which no agreement was reached to the arbitration of the American commission CTS. The assembly directed that Secretary Taft be requested to notify the liberals of this action to arrange for the appoint ment of a similar committee by the lib- erals and to fix time and place of meet ing.
 It was agreed that at the extraordinary session of Congress Friday the resig- nation of President Palma would be tabled, pending these negotiations. with the hope of obviatng the necessity of his leaving office. It was the ultimatum issued by Secretaries Taft and Bacon that brought the moderates to agree 10 these concilitary methods.
 Secretary Taft said .nnight
 "The moderates yesterday determined to force American intervention by the resignation of government officers. thus leaving affairs in our hands. President Palma chose to regard our suggestions as demands and he rejected them em- phatically. Today we acquainted Alfredo Zayas. the liberal leader, with the situ- ation and he undertook to induce his associates to consent to the original proposition of the moderates, namely, that the insurgents lay down their arms and submit the entire controversy to the American commissioners. But the rebel commanders and men in the field sus- pected lnsincerity on the part of the government and declined.
 Taft Makes Statement.
 "The negro insurgents especially insist ed on retaining their arms until peace was assured. Zayas' report Is indicative of future trouble with the 1awless ele- ment and rebels l feel certain that a settlement of the trouble is possible only along the lines suggested by us.
 After an exhaustive investigation we informed both, the moderates and the lib- erals, that unless they were willing to listen to reason the United States must enforce a settlement. I told them that proclamation would be issued estab- fishing a military government in the island. but that this would continue only so long as necessary to restore order and insure the holding of new and fair general elections. I made it plain that this military government would surrender the conduct of affairs to the persons fairly elected as soon as they could fairly establish themselves.
 This ultimatum was secured by Mendez Capote and Dolz for the moderate, and Zayas for the liberals and insurgents. Whatever the outcome of the negotiations