48 PAGES
VOL. XXI Y NO. 35.
PORTLAND, OREGON, SUNDAY MORNING, AUGUST 27, 1905.
PRICE FIVE CENTS.
PAGES 1 TO 12
W1TTE HOLDS OUT
CMS ANSWER
Forces Japan to Play
for More Time.
Y
HAD ULTIMATUM READ
Russian Envoys Would Have
Ended Conference.
MONDAY MAY RENEW WAR
Question of Indemnity Alone Re
mains. Czar Offering to Divide
Sakhalin With Japan.
Peace in Balance.
PORTSMOUTH. X. H.. Aug. 26. As in
dicated in those dispatches last night,
there was no rupture in th6 peace nego
tiations today. Peace 1b by no means
assured, but an important crisis has been
tided over, and the fact that the life of
the conference has boen prolonged Into
next week adds materially to the chances
of a favorable issue.
According to the Russian, version. It
was Japan and not Russia -which -weakened
lhls afternoon. Mr. Witte publicly
announced after the sitting that It was
Baron Komura who asked for an ad
journment until Monday, In order to have
time to submit a new proposition. Yet it
Is known that Mr. Witte has received
instructions, sent after the President's
intercession at Peterhof through Ambas
sador Meyer, to agree to the division o
Sakhalin and to permit liberal compensa
tion for the Russian prisoners of war
and the cession of the Chinese Eastern
Railroad, but to continue absolutely to
refuse to pay war tribute under any
guise. This w&s desorlbed as, Russia's
"ultimatum," leaing the same old ques
tion of money the stumbling block to an
agreement.
"Witte Forces Japan to Move.
In the regular course of procedure, after
the presentation of the Japanese com
promise proposition on Wednesday, the
diplomatic move passed to Russia, and it
was Mr. Wltte'a turn .naturally to present
tbq counterropositlon of his govern
ment. If he succeeded, as is intimated, in
withholding his card and forcing the Jap
anese to play again, he undoubtedly
gained a point In the game.
But no adequate account of the proceed
ings at today's meeting is forthcoming.
The plenipotentiaries, by agreement, ex
cluded the secretaries. There were no
minutes. There are no rcords. This in
itself is extremely significant. "When men
who are fighting a desperate battle lock
themselves In a room alone,. It is the best
evidence that they are terribly In earnest.
It is a hopeful sign. All that Is formally
announced is that the minutes of the last
session were approved, and upon Baron
Komura's motion, the conference ad
journed until Monday at 3 o'clock, but,
whethor or not the counter-proposition
of Russia was submitted at this after
noon's session, it seems to be "up to
Japan" to formally renounce her demand
for the cost of the war, and try to oblain
a partial reepmpense in another way for
instance, by a bona fide sale of the north
ern half of Sakhalin.
Ultimatum From Czar.
Emperor Nicholas reply, to Ambassador
Meyer and his instructions to Mr. Witte
are regarded as his last word, so far as
indemnity is concerned. A compromise
by which Japan can secure a compara
tively moderate sum of money Is still
open.
But ;the gulf to be spanned Is still wide
between the two adversaries. Russia now
is willing to divide Sakhalin. Japan on
"Wednesday claimed the entire Island by
right of occupation, offering only to sell
back the northern half at the price of
the "cost of the war." And it should be
borne in mind that the elimination of
articles 10 and 11 (surrender of Russia's
Interned warships and limitation of Rus
sian sea power) was conditional upon her
acceptance of this proposition. Baron
Komura and Mr. Takahira want time to
consult their government before agreeing
to yield further. The most competent
Japanese authority said tonight:
"The question" of peace or war still
hangs In the balance."
For the first time there appears to be
some dissension In the Japanese camp as
to the advisability of making another
conciliatory step. Many of the attaches
arc strongly of the opinion that they
should not recede another Inch. The
most prominent of them said tonight to
the Associated Press:
"We only offered one-half of Sakhalin
upon condition that we should receive for
it the price we fixed. The Island lsvours
by right of conquest. If Russia imagines
we will give up half of It for nothing, she
Is much mistaken. Our answer should be
'Come and take It.' "
Both Sides Desire Peace.
The main hope of peace rests, as before,
upon the fact that both sides are at
heart seriously endeavoring to end the
war. All the principles Involved in the
war have been settled in favor of the vic
tor, and with each day's prolongation of
the negotiations the pressure on both
sides 111 increase not to allow a mere
question of money to stand between
them.
The medium of communication between
Baron Kaneko, who is acting for Japan
in the pourparlers with the President, and
tha Jananese plenipotentiaries, has been
discovered. It Is Mr. Uchlda. the Japa
nese Consul-General at New York. After
Baron Kaneko's visit to Oyster Bay yes
terday, a long account of the interview
was transmitted by telegraph in cipher to
Baron Komura by Mr. Uchlda.
PRESIDENT'S XOVE FAILS.
Russia Refuses His Proposition, Xow
It Is Japan's Move.
OYSTER BAY, Aug. 26. Russia has re
fused finally to accede to President Roose
velt's proposition looking to an agreement
of peace.
Emperor Nicholas has communicated to
the President, through Ambassador Mey
er, at St. Petersburg, his response to Mr.
Roosevelt's latest suggestions. That re
sponse was received by the President to
day. Its specific terms are not disclosed
here. It Is known, however, that Russia
declines to pay to Japan indemnity In any
amount or In anj' form.
Through Mr. Witte, Russia has indi
cated willingness to reimburse Japan for
the care of Russian prisoners, and per
haps to make some concessions regarding
Sakhalin Island, but he Insists that not
a dollar of Indemnity will be paid.
That Mr. Witte speaks by authority of
his Emperor there is no room for doubt,
and it is surmised that the Emperor has
informed the President of the nature of
the instructions he has given his repre
sentatives at Portsmouth.
' -Whether the decision of the Russian
Emperor will destroy the remaining pros
pects of an agreement of any sort be
tween the representatives of Russia and
Japan remains to be determined. The
crisis, as indicated in the dispatches last
night, probably will be reached next Mon
day afternoon, to which time the peace
conference today adjourned.
The Russaln Emperor has spoken. It
remains now for the Emperor of Japan
to decide. In view of what appears to be
an ultimatum on the part of Russia,
whether further concessions shall be
made, or whether. Indeed, the conference
at Portsmouth shall continue longer In
its efforts to find a basis of agreement
between the plenipotentiaries. As here
tofore Indicated, the President lias com
municated directly not only with the
Russian Emperor but also with the Jap
anese government. IK is not revealed
whether It Is his intention further to
communicate with Japan, but It is quite
certain that he will not relinquish his
hope of a peaceful adjustment of the
pending differences until the final disso
lution of the conference.
WITTE EXPECTS RUPTURE.'
Denies Russia Will Cede Half Sak
halin Ready to Return Rome.
PARIS. Aug. 26. The adjournment of
the peace conference at Portsmouth to
Monday Is regarded as an Important fac
tor In favor of peace and gives general
satisfaction here. 8ome special dispatches
in this morning's newspapers are optim
istic, but those from Portsmouth are
couohed In pessimistic terms. In one of
these latter dispatches, Mr. Witte Is
quoted as saying:
"I informed "Baron Komura this after
noon that Russia would not pay an in
demnity In any form. Baron Komura
then requested an adjournment until
Monday. We acceded to his desire, but
were astonished at the request.
"1 strongly deny that Russia is ready
to cede a portion of Sakhalin, but she is
roady to pay In generous measure the
cost of the maintenance of the prisoners
taken by Japan and nothing more. The
Japanese have yet to learn the Russian
spirit.
"The conference may meetMonday and
Tuesday, and I may sail on Wednesday
or eight days hence. The latter event
is probable; but I think we shall return
to Europe without having accomplished
anything. This afternoon I believed there
would be a rupture and have asked for
my hotel bill and have engaged rooms in
New York.
"1 do not know Baron Komura's reason
for requesting an adjournment Perhaps
it had reference to the new Anglo-Japanese
treaty. It may be that Grat Britain
requires of the Japanese before conclud.
lng the treaty that Japan shall end the
war. This i only a supposition, how
ever." RUSSIA WILIi BE TO BLAME
Roosevelt's Verdict, Should His Me
diation Xot Bring Peace.
PORTSMOUTH, Aug. 26. (Spccial.)-If
peace does not come through the negotia
tions now in progress. President Roose
velt will lay most of the blame at the
door of Russia. The deadlock, if such it
proves to be, will have been caused almost
entirely by the refusal of the Czar's en
voys to listen to argumen throughout
the proceedings. The attitude of the Rus
sians has been from the outset that they
have not suffered defeat at alL The
reverses that have overtaken them, they
have been pleased to call "merely trou
bles." When the President first broached
the subject of indemnity to the Russian
plenipotentiaries, they drew themselves
up with great dignity and exclaimed:
"Never. Russia is too great to ever pay
Indemnity, for she is too great to admit
defeat."
To the suggestion that the Island of
Sakhalin might be ceded to Japan as a
part of the cost of the war. the Russians
cried: "Russia has never ceded territory
and never will."
"But she ceded away territory after
the Crimean War," retorted the Presi
dent. "Ah, but that was an entirely different
case," they replied!
"But Japan has the island now. has she
not?" the President is said to have asked.
"Yes," admitted the Russians.
"And you have no navy at present that
could by any feat of arms retake the
island, and will probably not have such
a navy within a generation?"
"No," they were forced to admIL
"Then, tell me, in the name of all the
powers, how do you expect to regain the
island from Japan?" the President is said
to have demanded.
The Russians were not very clear as
to how the lost territory was to be re
taken, but spoke vaguely of "coming vic
tories." They again fell back upon the
tremendous power and grandeur of Rus
sia as an argument to place against those
claims.
At several Junctures in the proceedings
President Roosevelt has been on the point
of washing his hands of the whole affair,
so exasperated has he become over the
&Coacludi4 oa P&ge 2.)
1 ME BLUFF
BARON KOilHURA
Stands Pat on Former Terms
and Offers to Close
Negotiations.
SURPRISE FOR- JAPANESE
Russian Envoys Ilold Out Czar's
Ultimatum Suspected of Beat
ing Down Price of Peace,
Which They Desire.
PORTSMOUTH, Aug. 26. Russia's plen
ipotentiaries carried consternation to the
hearts of the Japanese onvoya today. They
threatened at this afternoon's session to
break off further peace negotiations by
"standing pat" and declining to present
an answer to the modified demands of
Japan made at last Wednesday's meoting.
With that answer already prepared and
in his possession, Mr. Witte, after the
signing of the last protocol, announced
to Baron Komura that he was ready to
wind up the affairs of the conference.
After ngrecing to Japan's request that a
session" be held on Monday, Mr. Witte
and Baron Rosen with the utmost com
posure left the hall. Then, with the band
playing and hundreds of guests crowding
the hotel to attend the weekly dance, the
giant Russian envoy and his distinguished
associate for the first time since their
presence here entered freely with the
merrymakers. For a quarter of an hour
Mr. Witte looked on at the dance and
was the life of the occasion, his acquaint
ances and many visitors coming up to
pay their respects.
About the same time Mr. Sato ami Mr.
Dennlson, the Aroorican counsellor to the
Japanese envoys, were engaged in a game
of billiards. Baron Komura and Minis
ter Takahira remained in their apart
ments. From the appearance of the Russian
principals and the members of their suite,
who were out In force, the casual ob
server might suppose that the work ot
the peace envoys had been practically
concluded. The Russians leave that im
pression, but their actions and their
speech furnish a basis for a well-founded
suspicion that they may have been en
gaged in a game of bluff and have over
played their hand. It may be, however,
that ... ey are sincere in their belief that
thoJapanese government will be unable
to harmonize Its differences and that the
meeting scheduled for Monday will still
have some result. The impression that
the negotiations will continue for a time
is strengthened by the knowledgethat the
Russian government has forwarded to
Mr. Witte an answer to Japan's demands
In the nature of a counter-proposition.
Witte Moves to Adjourn.
When the conference met, much to the
surprise of the Japanese envoi's, who were
awaiting expectantly, Mr. Witte. instoad
of presenting the Russian answer, which
it had been almost officially announced
had been received, suggested that they
should take up the protocol of the pre
vious meeting. This was agreed to, and
it was read and approved and signed. Mr.
Witte then announced that, to far as
the Russian envoys were concerned, the
purposes for which they had been called
together had been completed, and ho sug
gested that if there was no other busi
ness, the conference should adjourn sine
die. By request of Baron Komura. Mr.
Witte retired with him to an adjoining
room, where they were In conference for
IS minutes. Upon their return Baron Ko
mura announced that, while he had no
further communication to make at that
time, he thought it advisable, in view of
the great Interests at stake, to adjourn
until Monday, which was agreed to. If,
before that time, Japan has no further
proposition to make, and Russia does not
recede from the position she has taken,
the Portsmouth peace conference will be
brought to an end.
Mr. Korostovltz, the spokesman of the
Russian envoys, predicted the result in
an Interview with the Publishers' Press
-correspondent previous to the meeting of
the envoys, after he had admitted by in
ference the secret of Russia's answer by
explaining that it met the Japanese" pro
posals In the proper spirit.
Expect End to Come Monday.
"Is Russia's answer of such a charac
ter as to lead to further negotiations?"
he was asked.
"That depends upon today's develop
ments." he replied. "The Japanese en
voys may at once express their dissatis
faction at Russia's attitude. On the
other hand. Japan may have another
proposition or something may come from
our side. Then, again, the Japanese en
voys may desire further time for con
sideration." "What Is your personal opinion as tq,
prospects for peace?" he was asked.
- "I am beginning to believe that the con
ference will end today, or Monday at the
latest." was his response.
Mr. Sato, the Japanese spokesman, to
DEWEY TO HAVE A DAY AT THE EXPOSITION
GREAT ADMIRAL IS INVITED BY EXPOSITION MANAGEMENT AND
HIS VICTORY OF MANILA WILL BE REPRODUCED IN GUILD'S LAKE
y DMIRAL. DEWEY Is to have a day 1
IJk at the Lewis and Clark Exposition.
and when he comes as the guest of
the Exposition a big naval battle, repre
senting Dewey's victory at Manila, will
be had on Guild's' Lake; thereby giving
Admiral Dewey an opportunity of seeing
the most Important event in his career
portrayed Jn mimic warfare at the West
ern World's Fair.
A telegram was sent to Admiral Dewey
yesterday extending him an Invitation to
,the Publishers' Press, was unable to pre
dict whether Russia's answer was to be
acted upon today or not. He said that he
did not believe today's session will be the
last, because there was always a possi
bility of the envoys desiring to communi
cate with their home governments.
"Can Japan's terms be considered
final?" Mr. Sato was asked.
"I understand that at no time hta my
government presented an ultimatum Jjr
ing these negotiations," was his reply
Mr. Witte, the chief envoy of Russia,
was even more emphatic in his predic
tions as to the outcome. Just before his
departure for the meeting he said:
"It all depends upon Japan and whethei
she is willing to make concessions. I
do not anticipate any favorable result
from today's meeting, and am ready and
anxious to get away."
Japan Taken hy Surprise.
The surprise of the Japanese plenipo
tentiaries at the failure of the Russians
to present a formal answer to their re
cently modified proposals was all the
greater because the existence of such
a document was known here, and had
received partial confirmation from St.
Petersburg. What they could not under
stand was that the answer was In the
form of a counter-proposition, as It was
thought negotiations had not reached that
stage. Until this morning it was thought
the only thing Russia would do at today's
session would be to file hrr rormal rejec
tion of the Japanese proposition submit
ted on Wednesday. The outcome of tne
session demonstrated the correctness of
this belief, and by allowing It to become
known that she had a counter-proposition,
it is considered that Russia has un
wittingly exposed her band. ,
It is learned on good authority that the
Russian answer which was not submitted
today contains three specific points. They
are in principle as follows:
-A efusal to purchase half of Sakhalin
Island for JC09.000.000.
A renewal of her determined opposition
to the payment of a cash indemnity.
The expression of willingness to reim
burse Japan for such legitimate expenses
as the maintenance of Russian prisoners.
There Is said to have been included In
this a proposal to surrender to Japan all
claim to half of Sakhalin Island. This
report lacks confirmation.
Think Russia Is Bluffing.
The general Impression prevails that
Russia's attitude as displayed today is
one of "bluff." based upon belief that
Japan lias not named her net pricet It
Is apparently her present aim to beat the
demands down. It Is also believed that
Japan on Monday will reopen the nego
tiations with still further concessions.
This will give Russia an opportunity to
submit her counter-proposition, if she is
ready to do so. The great bugbear of
the Japanese demands is the claim for a
cash indemnity.
That she would notjnsidor the pay
ment of a couplf- of hundred of millions
of dollars as an Indemnity may be gleaned
from the observations of a Russian here,
who is quoted as saying:
"A small reduction In Japan's cash de
mands would be useless; a large reduction
would mean that Japan renounces the
principle of Indemnity. We do not ex
pect her to do that."
It will be remembered that Japan's
modified proposals provided for the ces
sion by Russia of half of Sakhalin Island
and the withdrawal of her other condi
tion still In question In return for the
cash payment of 46CO.000.O00. If this quoted
expression of a member of the Russian
suite is an accurate presentation of the
Russian proposition. It may be assumed
that the payment by Russia' of about
$200,000,000 Ztr less would be considered by
Russia as Japan's renunciation 'of the
principle ot indemnity.
May Get Other Compensations.
But, in case an agreement of this
sort was reached, it would not neces
sarily follow that this amount would
be the only money that Japan would
receive. There are still questions re
lating to the Chinese Eastern and the
Manchurlan railroads that have been
left open. Under previous agreements
it Is understood that these railroads
are to be turned over to China under
certain conditions. Now if Russia
could secure from Japan a modification
of the former agreements, so that she
could have more voice In the direction
and operation of these valuable high
ways of commerce. It is reasonable to
suppose that she might be willing to
pay for it. There can be no doubt that
Japan contemplates assuming the same
position in Manchuria .is has been oc
cupied by Russia at least. The feeling
of "Asia for the Asiatics"- will un
questionably bind Japan and China to
gether in a close bond for. their mutual
protection, defensive and offensive.
Russia is said to recognize the situa
tion. If she can under a treaty of peace
now regain unqualified control of these
railroads. It will enable her to pre
serve ?ier present commercial advan
tage and guarantee Its development In
the future. Under this commercial
phase of the present negotiations, Rus
sia could afford to puy Japan many mil
lions of dollars for an advantage that
would accrue to her.
Memphis Disproving Charge.
MEMPHIS Tenn.. Aug. 26. (Special.)
Positive denial is made by Dr. Jones of
the reports sent by the New Orleans doc
tors that a case of yellow fever in that
city had been contracted In this city.
The woman who is alleged to be 111 In
New Orleans ba made contradictory
statements concerning the time she was
in Memphis after she first came here
from New Orleans and when she left,
according to affidavits which the health
officials state that they have.
visit the Exposition, and as soon as a re
ply Is received that be will come to Port
land, a date will be arranged for the
Dewey day exercises, to conclude with
the "Battle ot Manila" In the evening.
President Goode's telegram to Admiral
Dewey follows:, .
Portland. On. Aug. M. ifcOS.
Admiral G force Dewey. United States Navy,
Washington, D. C: Lewi and Clark Ex
position bin planned for Dewey day celebra
tion to be held on as early day In September
xsu. mjo. Xsc Dtxtz ra ca?
s
TARVATIflN
FAIR ANDALUSIA
Famine Reduces 200,000
Spaniards to Desperation
Through Hunger.
COUNTRY HAS DRIED UP
Drouth and Absence or Irrigation
Make It Desert Cardinal Bcgst
for Help People Take
Food by Force.
SEVILLE. Spain. Aug. 26. Heartrending
reports continue to reach the provincial
authorities from the outlying famine
stricken districts. The latest rejjorts re
ceived are from Osuna and Almongia. the
respective Mayors of which notify the
authorities that their resources are ex
hausted and that they arc unable to fur
ther assist the famished laborers and the
women and children, as the distress Is too
acute. At Eclja the population hns looted
the bakers stores.
The mortality among infants and aged
persons is attaining terrifying proportions,
and In many localities the working people
are living on roots. The government hns
organized public works on a small scale,
employing about 600 men. but this Is a
mere drop In the bucket of misery, as a
moderate calculation shows that 200,000
are out of employment. ,
Extreme Measures of Relief.
Cardinal Sancha. having exhausted the
available charitable funds, is going from
house to house In Seville begging for con
tributions, while the employes of several
banks and commercial houses have de
cided to devote a portion of their wages
toward the relief of the destitute.
Count Romanones. Minister of Agricul
ture, has" Just concluded an exhaustive
personal Inquiry " In the distressed dis
tricts, following on the appropriation of a
relief fund of $S00.000 by the government.
His report creates the Impression that
heroic measures for relief are essential.
The Count Journeyed from end to end of
Andalusia, and everywhere In the four
provinces comprised therein he was con
front with pictures of desolation.
Country Becomes Desert.
The territory mont stricken forms a cir
cle embracing Seville. Jerez. Cadiz. Mal
aga and Cordova, where natural forces
appear to have combined against the peo
ple's welfare. The rivers for years past
have, been gradually filling with sand,
preventing navigation and hindering com
merce. The district has always been dry,
but this year a two months' drouth, be
ginning In the Spring, destroyed all hopes
of the reaping of crops and rendered the
landscape practically a desert, resembling
portions of Morocco. The population Js
almost entirely composed of day laborers
who depend on agricultural employment,
and when that falls, which is a frequent
occurrence, though more marked this year
than ever before, practically everybody Is
thrown Into a condition of indigence.
It is calculated that a third of the popu
lation emigrated In recent years to South
Amorksn, and these emigrants naturally
Included the most robust. The condition
of the remainder, however, was not ame
liorated thereby. The soil, owing to lack
of irrigation. Is becoming more and more,
unproductive, and the patience of the peo
ple Is now nearly exhausted.
Hunger Breeds Rebellion.
The absence of the landlords, and un
fulfilled electioneering promises, added to
the fact that women and children are suf
fering the agonies of slow starvation,
have led the people to listen to agitators,
who Incited them to violence, the result
of which Is seen In attacks on farms, the
seizure and killing of flocks of sheep, and
the threat of armed Invasion of the
towns.
Murmurs of viurolutlon have caused ap
prehension andithe farmers everywhere
are taking refuge In the cities, while the
police regard the acts of pillage with In
difference, refusing to arrest men who
frequently accuse themselves In order to
obtain food.
OVERHAUL THE OREGON
Famous Battleship Will Be Much Im
proved at Bremerton Yard.
OREGONIAN NEWS BUREAU, Wash
ington. Aug. 25. The battleship Oregon,
now In the Philippines. Is under orders to
return t6 this country early next Spring
and go out of commission at Puget Sound
Navy Yard, where she will undergo a
complete overhauling. It Is estimated
that the ship will be under repair for
about two year?, and ihat extensive
i changes will be made. Including Installa
tion of a new battery and removal of
certain auxiliary boilers considered of no
further use.
In all probability the thlrtecn-inch
gun? of the Oregon will give way to
, dlally Invited to attend this celebration as
Igi.eM ot Exposition. In honor of your visit
we will reproduce the Battle of Manila May
on lake within Exposition ground'. War ve-
sel which we shall use will be' in miniature,
I but will be over SO feet long and built on
electric launches It will he our purpoce 'to
make battle as historically -correct as we can.
Guild' Lake, scene of proposed battle, haa
area of GOO t. acres and affords exceptional fa
cilities for reproduction of great battle which
gave United States supremacy In Pacific.
I H. W. GOODS;
twelve-inch, now the maximum, which
have beeni found as effective as and less
expensive than larger guns.
FLEET HAS NARROW ESCAPE
Course Is Lost in Heavy Fog: Off
Newport.
NEWPORT. R. lTaur. 26. (Special.)
The arrival today of Captain Fogarty, of
Brenton's Reef lightship, off this port,
disclosed the fact that the entire North
Atlantic squadron narrowly escaped pil
ing on the rocks of the treacherous reef.
The nccldent was prevented by the Iowa
deliberately colliding with the lightship,
whose sterm and headgear were carried
away, while the battleship lost only some
streaks' of paint from Its bows.
The vessels of the squadron at the time
of the collision were proceeding at slow
speed, having lost their course. In fact,
the Iowa was leading the way In a direct
line for the reef. It was last Thursday
the accident happened which saved the
warships, but the officers and crews of
the ships, down to the last man, have
maintained a discreet silence.
There was- a thick fog when the squad
ron left Newport and pointed for the
open sea to engage In target practice and
squadron evolutions. Before the ships
had fairly reached the mouth of the har
bor they were out of their course. The
lightship saved the day. It was 3 o'clock
when Captain Fogarty saw the bows of
the Iowa close to his starboard bow. Be
fore he could hall, the bow of the Iowa
prashed Into his stem, shaving It off to
the water's edge. All the headgear, the
short bowsprit and the buoy stays were
carried away. The warship rapidly
sheered off- and rounded to. and the
squadron returned to Newport.
CONTENTS TODAY'S PAPER
The Weather.
YE.ST.Kn DAY'S Maximum temperature. 77
deg.; minimum. 50.
TODAY'S Fair and warmer. Northwest
winds.
The Teace Conference.
Russia offers to cede half Sakhalin, but re
fuses Indemnity. Page 1.
Witte holds back ultimatum at eonfrnce
and moves nnal adjournment, but Komura
ask another meeting. Page 1.
Russian suspected of bluffing to gain con
cessions. Page 1.
Roosevelt says Russia win be to blame If
conference fails. Page 1.
Paris paper asks Rockefeller to pay indem
nity. Page 3.
Foreign.
Andalusia reduced to desert by famine and
many people starving and rebellious.
Page 1.
Sultan of Morocco refuses to give up pris
oner. Page 3.
Russia.
Troops massacre Jews In Polish city. Page 2.
Reign of terror in Warsaw. Page 2.
Outbreaks In Baltic provinces. Page '-.
National.
Holmes fails to appear as promised by eoun-
sel. Page 3.
Submarine Plunger gives torpedo test.
Page 3.
-. .. vw t Domestic-
Postoffice thieves eooape by .bribing. Jailer.
Page 3.
North Atlantic fleet barely escapes recks.
Page 1.
Yellow fever epidemic will reach height In
September. Page 2.
Taclflc Coast.
Governor Mad prepared to replace Warden
Kees at Walla Walla penitentiary. Page'll.
.Raleigh Falkner elopes with lB-year-oM girl
and Is married in British Columbia.
Page 5.
Sllverton. Or.. Deputy Game Warden reports
on brother, who Is sent to Jail. Page 5.
Seattle Chinese merchant says his govern
ment Is taking strong measures en boy
cott. Page 4.
Supers in 'The Pit" go on strike at Spokane.
Pag I.
San Francisco boys have lively tussle with a
shark. Page 14.
Russian officers and American women are
barred from Palace Hotel. Page 13.
Sport.
Fine race matinee at Irvington. Page 10.
Los Angeles takes th fifth straight game.
Page 14.
Giants in a slump; fans wonder why. Page
17.
Caspar Whitney denounces crookedness In
athletics. Page 17.
Yachts sail for Astoria regatta. Page 17.
University of Washington proposes new ath
letic code. Page. 17.
Ormondal wins great futurity race. Page 10.
Pacific Coast League scores: Los Angeles tf,
Portland 4: Tacoma 3. San Francises 2;
Oakland 0. Seattle 2. Page 14.
Footbail prospects bright in Northwest cal
lages and at Multnomah Club. Page 10.
Commercial and Marine. -
Activity in export barley market. Page 35.
California prunes stronger. Page 35.
Wheat weaker at Chicago. Page 35.
New York banks less In cash less than esti
mated. Page 35.
Stock trading affected by hitch at Ports
mouth. Page 33.
New York hopman estimates crop of that
state under 30,000 bales. Page 33.
Wheat ships coming. Page 5.
Knight Errant may come. Page 5.
Yachts sail for Astoria. Page 5.
Fishing profitable on the lower river. Page 5.
Lewis and Clark Exposition.
Admissions, 21.200. Page 8. '
Seattle will have big week at Fair. Page 9-
Flrst church service at Fair since Sunday
opening of the Trail. Page 0.
Japanese will have Feast of Lanterns.
Page S.
Exposition is mecca of lovers of art. Pages
30 and 33.
Alaska exhibit shows great mineral wealth.
Page 32.
Colorado shows wealth in many forms.
Page 33.
Army of letter-carriers coming to Portland.
Page 10.
Portland and Vicinity.
Big educational congress begins tomorrow.
Page 3.
Trans-Mlsslsslppl Congress delegates will ask
for improvement of Columbia Itivur.
Page 0.
Chinese army has hopes in reorganization.
Page 0. '
Easterners invest In Gresham. . Page 14.
Mayor Lane removes Chief Engineer Wanzer.
Page 24.
Chauffeur Ash says no auto can comply with
limit law. Page 30.
Chief of Police favors company formation
for department. Page 24.
Assessor Slgier notifies citizens that If they
do not file statements he will make arbi
trary assessments. Page 10.
Realty market is active Page 10.
Nehalem railroad will connect Its tracks both
with Northern Pacific and with Southern
Pacific. Page II.
1'eatures and Departments.
Editorial. Page 0.
Church announcements. Pagfe IS. ,
Classified advertisements.' Pages 19-23., :
The Fair grounds at night. Pages 42-4.
Birds of the OreOn woods. Page 38.
Robert FltxslmmoSs as a historian. Page 37.
Total ecilyse of the sun next Wednesday.
Page 3.-
Inland sea farming In California. Page 40.
Sherlock Holmes. Page 47.
Why "Joe" Cannon la popular. Page 4S.
Social. Pages 28-27.
Seaside notes. Pages 31 and 30.
Musical. Page 20.
Dramatic Page 2S.
LHaaxholA isd fjuoloas Pu li-iS
Cl'SLflSTlID
- REFUSES TO PAY
Offers to Give Japan
Half Sakhalin.
PAY FOR PRISONERS' CARE
Does Not Change an lota on
Indemnity Question.
PEACE DEPENDS ON JAPAN
Internal Disorder Jlore Feared hf
Czar ThaH Continuance of AVar.
Meyer Gained One
Concession.
WILL MOBILIZE MILLION MEN.
LONDON. Aug. 20. (Special.) A
dispatch to the Exchange Telegraph
Company from St. Petersburg says
1.000.000 soldiers are to be mobilized
shortly and sent to the front In Man
churia. ST. PETERSBURG. Augi 27. (3,3
A. M.) The curtain has been rung down
on the St. Petersburg s.tagc. but he
center of Interest in the peace negotia
tions between Russia and Japan haa
been transferred to Portsmouth. Emperor
Nicholas, after carefully weighing- the
consequences of his act. has said his
last words. Russia will make no financial
contribution to Japan In any form what
soever, and. unless Japan accedes to
President Roosevelt's efforts to effect x
compromise between Russia and Japan,
his offorts whl have proved unavailing.
Sir. Meyer, the American Ambassador,
yesterday Informed President Roosevelt
of Russia's ultimatum. . She agrees to
cede half of the Island of Sokfrallrrriof
to pay Japan for the maintenance of.
prisoners of war. but nothing- more.
Russia declares that she "haVmek Japan
more than half way and. has proved to
the world the sincerity of her desire for
peace, but that she would rather fight
than pay an Indemnity. On this point
Russia hns not changed her opinion one
hair's breadth.
Mr. Meyer received his latest communi
cation from air. Roosevelt Saturday morn
ins, and as a result called on Foreign
Minister Lamdorff late yesterday. What
final proposal was contained In the Presi
dent's Intest communication it was Im
possible to learn accurately, but there is
reason to believe It suggested a compro
mise on the basis of Russia's paying
Japan for Sakhalin. Russia's final an
swer was communicated to Mr. Meyer,
who at once Informed the President. "No
stone was left unturned and no effort
was spared here to secure a settlement.
The President carried on his negotiations
with Emperor Nicholas, with great en
ergy and showed himself to be rich in ex
pedienL AH his communications with the
Emperor were made directly through the
American Ambassador, and Mr. Meyer
conducted the extremely difficult and deli
cate negotiations with great tact and
ability and won the high esteem of tto
Russian authorities for his careful and.
skillful handling of these weighty mat
ters, and also received the warm com
mendation of his fellow-members of tho
diplomatic corps.
Every single obstacle save one standing:
In 'the way of the signing of a
peace treaty at Portsmouth was over
come. In the matter of a financial con
tribution Russia's answer was a firm and
persistent refusal; and there Is excellent
authority for the statement that. If the
Portsmouth negotiations fall. It will be
solely on the question of money. The
question of cession of Sakhalin was ar
ranged satisfactorily, according to a well
Informed authority here, who declared
yesterday that Mr. Meyer during his In
terview on Wednesday with the Emperor
succeeded in persuading His Majesty to
agree to a division of the island. v
In his determination not to pay an In
demnity Emperor Nicholas believes he ha
all of Russia at his back. There are many
excellent reasons for believing- that this
Is so. particularly the fact that since the
beginning of the discussion on the Jap
anese terms not one voice hns been heard
in Russia that even suggested the con
clusion of peace on the basis of financial
contribution. The payment of an indem
nity would inflict a financial burden upon
the entire Russian people. Increase dis
content and consequently threaten the
vital interests of the empire. This un
doubtedly was the powerful reason that
Impelled the Emperor to make his de
cision with regard to the payment of an
Indemnity. Another reason advanced
was that a financial contribution would
give to Japan the wherewithal to menace
Russia with armies and fleets. Russia,
does not believe that a lasting peace
could result from a settlement which per
mitted Japan to assume thin attitude.
If It Is a fact that President Roosevelt's
efforts to persuade Russia to effect x
compromise have failed, and Russia's at
titude leaves practically no room to doubt
that this Is ao, peace depends upon Jap
an's foregoing an Indemnity. In this con
nection a well-informed diplomat said to 4
the Associated Press yesterday:
"If Japan refuses to forego indemnity
and make -peace, she will place herself on
record before the world as being more de
sirous for money than for the lives of
many thousands of her sons. Should the
war continue. I believe that Its final set
tlement, whenever that comes, "will find
Russia just as determined not to ply &
A financial nrtfmnltv. u h la -today.,"