Show ROOSEVEL TS SOLUTION OF PEACE PROBLEM if accepted would satisfy japan with out mortification to russia kaleidoscopic develop mants inspire hope portsmouth N H aug 22 the As soc press is now in position to reveal substantially the suggestion of president roosevelt tor breaking the existing deadlock in tho peace negotiations tiati ons ard rescuing the conference from failure his solution would ingeniously ly permit the satisfaction of the japanese demands lor reimbursement for tha cost of the war and at the same time enable russia to face the world with the declarations that she had not ceded a foot of territory or paid a kopeck of war tribute to the victor the solution Is the one which has heretofore been described in the associated press dispatches as the natural and logical compromise tersely stated it consists in an agreement by russia to purchase repurchase re possession of either all or halt of the island of sakhalin Sak halin now in tha military occupation of japan for a sum the amount of which it the two countries cannot agree shall be decided by some method of arbitration hereafter to be determined the purchase pur chasa money together the sum japan would obtain from the cession of the chinese eastern railroad and the maintenance of the russian prisoners in japan would it Is estimated about equal the amount claimed by japan as her bill tor the cost of the war possibly therefore the solution offered by the president involves recession by japan upon article five the caslon or sakhalin Sak halin and re casion by russia upon article nine indemnity it seems practically certain though this cannot be affirmed positively that the president today was able to give mr witte substantial assurance that japan would be willing to accept such a compromise this Is apparently supported by the authoritative japanese statement made to the associated press tonight in reply to a question as to whether japan bad not decided to make substantial concessions it all depends upon russia it was the presidents message to mr witte which caused the sensation of the day early in the morning had come the official announcement that the meeting of the conference which was to have been held today had been postponed until at the public reason assigned was that the protocols for submission at the sitting had not been completed dut a few hours latar the true reason leaked out JL mcgraw one of the stenographers attached tp the executive office at oyster bay had arrived with a communication from the president for tha russian ti aries mr witte and baron de rosen had left the hotel ostensibly for a ride in an to york beach hut instead had quietly slipped aver the conference building at the navy yard to receive the message from assistant secretary pearce the most elaborate precautions had been taken to insure secrecy but it leaked out through a tip from new york which reached the associated press from mr witto and baron de rosen remained at the conference building with mr pearce all those present declined to maka any statement regarding what transpired at the navy yard even refusing to admit that any importance attached to the matter mr watte would only admit that he had gone to the building to send a message and baron de rosen and mr peirce absolutely refused to maks any statement mr mcgrew took the train to boston whence according to reports he took the merchants limited after first inquiring at the intelligence office for the connections to oyster bay he carried a dress suit case which probably contained the reply to the president this reply it is believed was prepared by mr and baron da rosen after mr scirce had delivered to thlu presidents message A suggestion is made that during the stay at the navy yard the russian plenipotentiaries were in direct communication with the president by telegraph but there Is nothing to substantiate this and under the circumstances it appears unlikely mr Roosevel ts message to mr watte and baron de rosen is believed to have been he result of his interview yesterday at oyster bay with baron kaneko one of tha marquis aitos close tr jends who had acted athe presidents madl um of communication with the boklo government 7 A story was la circulation at the hotel this afternoon to the effect that baron danekos Ka secretary mr saki waa asre in communication with the japanese plenipotentiaries and also mr pearce but investigation developed the fact that although mr saki had been here a week ago he was not here today it has been ascertained here that in addition to the presidents communication muni cation to mr watte through baron de rosen last saturday and by messenger today messages directly to emperor nicholas have been delivered by ambassador meyer at st petersburg but no official confirmation is obtainable the general disposition was to regard swift and developments as materially teri ally brightening the chances of the success of the presidents heroic endeavors to save the peace conference from failure but it was realized that all as before depended upon the attitude of emperor nicholas and his ad visors mr watte it Is positively stated personally favors the solution offered by the president but he Is powerless unless his imperial master gives the word with the most intense anxiety that word was awaited it spells peace or war another slight flurry was created today by the arrival of col michael the chief clerk of the stats department he bad come in response to summons from mr pearce but both mr pearce and col michael stated that the visit waa only in connection with the routine business of the department mr pearce the thard assistant secretary of state tonight issued the fol lowing statement no envoy or representative of the president had any conference with mr watte or Baron de rosen today nor did I 1 have any conference with either of them nor was I 1 closeted with them they had business at the navy yard and my duties required me to be present at the yard to make suitable ar range ments for their comfort but in no way shape or manner did I 1 have a conference with them on behalf of the president in relation to their relation to japan mr witte and baron de rosen bad intended to remain longer in the navy yard in consequence of which I 1 had luncheon prepared for them but owing to a derangement of the stomach from which he has been suffering for several days mr watte being under the care of a physician at the went worth deemed it inadvisable to remain for luncheon at the yard and therefore took his departure at an earlier hour than usual leaving some of his secretaries who continued their work in the conference building until |