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A QUIET SESSION CABINET TALKS OVEB, THE TERMS OF PEACE They Give an Authorised Statement to the Press—Every Detail Considered WASHINGTON, Aug. 2—The cabinet ses sion today which had promised to be Im portant In view of the pending p*ace prop ositions, proved! to be uneventful, rt oe: i pied an hour ami ten minutes, but most of tne time was QeroteO) to a statement, suo pequently given to tho press, briefly sum marising the terms of peace. Aslelte from the discussion of this statement which was carefully drawn and scrutinized line by line, by the members of the cabinet, with Unusual precaution, for diplomatic rea sons, the meeting was devoted largely to the talking; over of minor war details. The informal exchange of views of InJl vldual members during the meeting indi cated a strong he lief in peace, though r.o .word of any kind hndi yet come from the Spanish government. One member of the cabinet, after the meeting, said he ex pected the Spanish reply,would be made to this government sor,,fe day this week, but that when peace o,ould be made operative is problematical and miEht require two months or more. The ses.slon was marked by an absence of news from the front in any direction. Official Terma WASHINGTON, Aug. 2.-The following I* an official statement given out by the authority of the president today as to the terms of peaeo offeTed by tho United Stutea: In order to remove any misapprehension ln regard to the negotiations as to peace between the United! States and Spain, it is deemed proper to say that the terms of fered by the Untied States to Spain in the note handed to the French ambassador on Saturday last are In substance as follows: The president does not now put forward any claim for pecuniary Indemnity, but re quires the relinquishment of all the claim of sovereignty over or title to the island of Cuba, as well aa the Immediate evacua tion by Spain of tho island; the cession to the United States and immediate evacua tion of Porto Rico and other Islands under Spanish sovereignty In the West Indies and the like cession of an island ln the La drones. The United States will occupy and hokl the city, hay and harbor of Manila, Rending the conclusion of a treaty of peace, which shall determine the control, disposi tion and government of the Philippines. If these terms are accepted by Spain In /their entirety It Is stated that commission ers will be named by tbe T'nlted States to meet commissioners on the part of Span; for the purpose of concluding a treaty of peace on the basis above imlleated'. A Hopeful Sign WASHINGTON, Aug. 2.—Up to the time the Cabinet met today no word had come from Spain either directly or through the French Ambassador, in response to the de mand of the United States. Notice was taken of the statement from Madrid that a further explanation has been asked by the Spanish government, but there has not been any directed so far to either the etate Department or the French Embassy. The reference to further negotiations, how - ever, Is regarded as a rather hopeful sign, •s tending to show a disposition on the part of Spain to close early with our terms, for It Is said that the expectation was that the Spanish rejoinder would take the form Of a'counter proposal, the effect of which Would be to lead to diplomatic sparring. It has been admitted at last by members ef the Administration that the terms of peace laid down by the United States hav been practically Btated with accuracy In the press dispatches, and realizing the fu tility of further concealment, some offi cial character was to be given to the press statements by formal declarations from the White House. Some such step has been in contemplation for several days past in deference to press ing requests not only from the newspapers but from a number of public men, who felt that the people should be taken more thor oughly into the conlidence of the administra tion. It was represented on the other hand that the negotiations might be seriously Jeopardized by the ill tftect on Spain of a publication of the terms imposed. How ever, as has been alreudy stated, the full, accurate newspaper publications descriptive Of the peace conditions have made it unnec essary to maintain secrecy longer, and when the cabinet met It was the under standing that a short statement touching the matter, though not including the text Of the peace terms, should be made public It is understood to be the present Intention ot the administration to assume all liability for all the, claims presented by American citizens agai,ns,t Spain on account of Injury to personal property ln Cuba. Some part of this liability may be im posed upon the government of Cuba later on, when that shall have been established, to include such cases as can be directly charged up against the Insurgents, where they have destroyed property of American citizens In the course of their operations This assumption by the victorious nation cf the liability for peace conditions Is rather In the line of the usual practice. At the conclusion of the Mexican war the United States assumed all such claims In behalf of American citizens and established an especial tribune for their payment. The same course was pursued ln 1814 In effecting a settlement of the Florida troubles with Spain, though the decision announced by the Spanish tribune was a source of litiga tion and negotiation clear down to the pres ent time. The amount of these claims against Spain in behalf of American citizens who suffered in Cuba was $15,000,000 at the time of the destruction of the Maine, it Is es timated that this has been Increased to $20,000,000, and no doubt Is entertained that there are many other claims of large amounts that have not yet been presented. Of course, it Is not possible at this stage to indicate what proportion of the claims are Justly chargeable to the acts of the Cuban Insurgents, and It Is known that In many cases the claimants themselves were unable to tell the source of damage to their property, whether by the Spanish troops or by the Insurgents. Major-General Wade had a long consul tation with Secretary Alger today, per fecting the details of the expedition he will lead to Porto Rico to reinforce General Miles. The fifteen regiments that will make up this expedition have been practi cally selected, although General Wade may suggest some amendments. It Is felt to be necessary to hasten the departure of the expedition, If for no other reason than to remove the soldiers from their present unhealthful camping ground. Fusion in Wyoming CASPER, Wyo., Aug. 2.—The Democrat ic and Sliver Republican conventions will tneet hers to nominate candidates for state ifflcea and -for oongreja, {The indications THE SPANISH HEN'S ADDLED EGG are that fusion Is assured. It Is also the general belief that Hon. G. C. Alger, who thus far Is the only avowed candidate for governor, will receive the nomination. C. P. Arnold, of Laramie, and J. C. Thomp son, of Cheyenne, are spoken of for con gress, though a great many believe that Congressman Osborne will be renominated. It has been practically agreed that at least one Populist and one Silver Republican will he placed on the ticket. ONLY THE SENATE No Special Session of Congress to Be Called WASHINGTON, Aug. 2.—There will be no extra session of Congress, though the Senate will have to be called for prompt ratification of the treaty of peace, If t'lie present plans of the President prevail. It is stated at the White House that unless there should be some extraordinary devel opment the House will not meet until the regular session next December. This state ment is made on the authority of the Presi dent himself, In answer to inquires in con tradiction of reports circulating among public men that Congress will soon meet to draft the legislation to meet thedemamls that will follow the close of the war, as well as give formal assent on the part of the Senate to the treaty. The military oc cupation of the territorial acquisitions of this government will in nowise necessitate further legislation expressly authorizing the continuance of a large military force, according to the view of the President. Persons who conferred with the Presi dent today positively assert that there is no necessity for special legislation to au thorize the keeping of the great army of volunteers. The President, it Is understood, takes the ground that requirements in the volunteer act for dlsbandment of volunteers on the termination of the war does not contem plate dlsbandment until the emergencies that are Incident to this war are over, and does not prevent the maintenance of a large body of troops In territorial acquisi tions until order is restored. A well-known public man, who was In conference with the President today, sug gested that the necessary military occupa tion of our conquered territory would In volve the maintenance for two years of an army of about 100,000 men. Corbett Makes a Bluff NEW YORK. Aug. 2.-James J. Corbett posted $2500 at the office of a morning paper for a match with Bob Fltzslmmons or Jim Jeffries. In his letter authorizing the deposit of the money Corbett says: "If I defeat McCoy at Buffalo I shall expect Fltzslmmons to show a disposition to make a match. It he Is unwilling to do so. the $2300 goes for Jeffries, and If I defeat Jef fries I don't see how Fltzslmmons can de cline to meet me." < SEARCHING *SPANISH>PRISONERS<NEAR SANTIAGO LOS ANGELES HERALD, WEDNESDAY MORNING, AUGUST 3, Itn THE TRIAL BALANCE GOVERNMENT'S RECEIPTS AND EXPENDITURES Balance on the Wrong Side of the Ledger for the Last Fiscal Year. The War Did It WASHINGTON, Aug. 2.—Assistant Sec retary Howell today made public the fol lowing In regard to the receipts and dis bursements of the government during the last fiscal year: Receipts, including Pacific railroad Items, $405,321,885; expenditures. Including Pacific railroad Items, $413,368,582; leaving a deficit of $38,047,247. If we exclude the receipts from Pacific railroads, amounting to $64,701,223, and the expenditures on this account of $4,549,768, the account would 1 stand as follow-.: Receipts, $340,570,110; expenditures, $438, --819,214; deficit, $98,249,108. This large deficit Is accounted for, ln part, by the extraordinary demands upon the treasury to carry on the war. A con servative estimate of the war expenditures during the months of March, April, May and June is $56,000,000. If we deduct this from the $98,249,103, the deficit would be $42,249,108. In other words, the deficit would not have exceeded this amount on a peace basis. At the end l of the first seven months of the fiscal year the deficit was $51,901,823. Deduct from this $42,249,103, and we find that the deficit has been reduced: during the last five months of the fiscal year $1, --052,719. It thus appears that during the last five months of the year our receipts exceeded'our expenditures on a peace-hasis over nine and a half millions; or, to express II In another way, the tariff law of 1597 pro duced during" the last five months of the fiscal year a revenue which exceeds our ordinary expenditures by over nine millions of dollars. THE MONROE DOCTRINE The President's Policy Gives Europe Great Concern NEW YORK, Aug. 2.—The London cor respondent of the Tribune writing under date of July 22 says: English writers on American financial affairs assume that the Monroe doctrine on behalf of which President Cleveland is sued a challenge to England two years ago, has been abandoned or compromised by the United States government in the present conflict with Spain. An expres slon which I constantly hear In conversa tion and read in print is: "Monroeism is dead." The misconception arises from con founding the Washington Farewell Address doctrine with the complement of it in thu Monroe doctrine. The Washington principle was that the Americans must remain out of European alliances and entanglements. The Monroe principle was that Europeans must keep their hands off the American continent, retaining their possessions according to the status quo but not enlarging their col onial holdlnp-p and conquests. The status quo is not reßpected In a war waged for the deliverance of Cuba and Porto Rico from Spanish rule, but the essential prin ciple of Monroeism that European powers are not to enlarge their territorial elomln lon and political sovereignty In the West ern hemisphere will not have been re nounced nor compromised. The Monroe doctrine will be strengthened rather than impaired by the expulsion of the Spaniards from Cuba. Monroeism, instead of being killed off, is vitalized and relnvlgorated by the enlargement of American Influence in tho West Indies. What English writers on American af fairs fall to perceive is the Irrelevancy of their own Interpretation of the Monroe doctrine. The principle of the "Hands off the American continent" is emphasized rather than minimized when Hawaii nnd the Spanish West Indies are brought di rectly under the Influence of the United States. If European governments re spected the Monroe doctrine from 1823 to 1898 and made no attempt, except on one occasion—ln Mexico—to Increase tbelr holdings on that continent while they were enlarging their possessions ln Asia, Africa and the South Seas, they will be unlikely to reverse their policy when the American flag Is raised ln Hawaii and the West In dies after a successful war and a signif icant demonstration of American naval efficiency. If they were to do this they would speedily be convinced of the vitality of Monroeism. The Aranas Belayed TAMPA, Fin., Aug. 2.—Contrary to ex pectations, the transport Aransas did no' sail for Porto Rico today. General Rogers has all of his heavy artillery on board, but there Is still some other loading to be done. The transports San Maroo, Clinto and Knickerbocker arrived at quarantine this evening from Santiago. Eight more are expected tomorrow. The Gresham Ready MONTREAL, Aug. 2.— The United States revenue cutter Oresham. which came down the I.achlne canal In two sections and was joined together again here, will sail ln the morning. She has taken on board coal enough to carry her to Boston, where she will receive her armament. THE COMMISSION OV THE WAY TO THE HAWAIIAN ISLANDS Its Stay Hay Be Shorter Than at First Anticipated—Details of the Work CHICAGO, Aug. J.—The Hawaiian com mission will pass through Chicago on Its way to San Francisco and Honolulu today. Dr. Ray of Oakland, who is disbursing officer of the commission, has arrived from Washington to make preliminary arrange ments. The remainder of the party will reach here by Thursday morning and leave at 6:30 p. m. the same day on the overland limited over the Chicago and Northwest ern. They will reach San Francisco on Sunday evening and will sail the following Wednesday by the steamer Mariposa. Honolulu wilt be reached by August 16 or IT, according to present expectations. The party will include Senators Cullom and Morgan and Representative Hltt, the commissioners from the United States, Mrs. Cullom and her daughter, Mrs. Wm. Barrett Ridgley of Springfield, Mrs. Hitt, D. A. Ray, disbursing officer; Secretary Henry L.. Haines, Representative Hltt's Congressional Clerk, Serjeant-at-Arms Al bert S. Berry of Newport, Ky., M. W. Blum enburg, one of the stenographers; J. Castle Ridgcway of Illinois, Senator Cullom's stenographer, and George W. Morgan, Senator Morgan's son and stenographer. Senator Morgan's daughters intended to go, but the 111-health of one prevented. The commission will be joined at Omaha by Superintendent Prltchett of the coast and geodetic survey, who will extend the American coast survey system throughout the entire Island group. He will travel with the commission, but has no official con nection with It. In their work on the Is land, the commissioners will be Joined by Stanford B. Dole and Judge Freer of the Hawaiian Supreme Court. The stay of tho commission In the Sand wich Islands promises to be shorter than was at first anticipated. Mr. Ray said the commissioners wore not agreed upon the matter, some thinking the work could be disposed of by October IG, others believing it would be a month later before they would return to the United States. "I cannot speak for the commission," said Dr. Ray. "I believe from what talk I had with the commissioners that the in quiry will be on the most general lines. The question to be decided Is what form of government shall be recommended. The commissioners are naturally non-communl- catlve as to their Ideas, and will no doubt wait until they have completed their work before making a statement of their views. "I understand that the physical char acteristics of the country, the chnracter of the population and other matters will be closely Inquired Into. Another question which the resolution creating the commis sion bound It to consider, Is the disposition to be made of the Imported labor on the Is lands. Navigation and customs laws may also be considered. MAINE'S FAT BOY Speaker Heed Visits the Wild and Woolly West PORTLAND, Me., Aug. 2.—Following Is the speech of Hon. Thomas B. Reed, de livered at the Republican District Conven tion today: "I am very graleful for your continued kindness to me, and being Sn Portland, it Is not unsuitable for me to come here and say so. "I have no other purpose than this. A newspaper the other day announced that 1 would come here and open up the cam paign. This Is not so. I shall not open any campaign for the simple reason that there seems to be no campaign to open. "In this district there appears to be thus far, great harmony In both parties as to the great issues of the past, and I shall leave to somebody else the task of disturb ing It. All over the country also there Is a dearth of political feeling. I never knew less of it in all the years in which I have known of such things. To me this la fortu nate for the country. I do not refer to the war alone. The war Is taking care of Itself, and seems likely to be soon finished by the fighting qualities of our soldiers; qualities not diminished by thirty-three years of peace and by the skill of our naval gun ners, engineers and sailors, which skill the general education of our people seems to have wonderfully increased. The unfalter ing courage of both soldiers and sailors is a cause of pride to every American. "The problems after the war will be the most troublesome and will demand the most earnest efforts of us all For my part, I hope that all these problems may be worked out consistently with our timo honored and dearly bought Institutions and with the traditions of our wise fore fathers. "Returning to the purpose for which I came hero, I tender my thanks to you for your continued and unvarying good will. That good will, permit me to say, has not consisted half so much In bestowlrrg and continuing to bestow on me a position of distinction, as it has in the large liberty you have always given me in Interpreting your wishes. I am proud to say that that consideration Is not the characteristic of my district alons, but of the whole State of Maine." JONES OF ARKANSAS Not ln Favor of Extending: Our Terri- Tory—Finish With Cuba First ST. LOUIS, Aug. 2.—Senator Jones of Arkansas, Chairman of the National Demo cratic Committee, who was ln the city con ferring with the prominent members of his party, had this to say concerning our foreign policy before he left for New York: "The United States Is pledged to the world that independent stable government shall be established ln Cuba. When I voted for that resolution nothing was said about imperialism. This country cannot afford to go back on Its pledge. These arc my private views, which I believe are those of the Democratic party. "I do not know what conditions may arise respecting Cuba, but I have never known a Spanish-American colony capable of self government, and it Is possible that since we set out to free Cuba from Spanish domination, we may be compelled to pur sue a course which will eventuate ln the control of the Island. While I am not ln favor of the acquisition of territory ln the troplos, this course would be less objec tionable than any other. "Cuba is adjacent to the United States as Is Porto Rico, and the thought of annexing the Philippines Is preposterous, under the circumstances, and not ln accord with the principles handed down from the days of Thomas Jefferson. "We began this war to secure the Inde pendence of Cuba and nothing more. When ire have accomplished that end and Spam The Last Two Days ' Tomorrow night at 6 oclock the old store will close for good. Today and tomorrow will be rich in most excep tional bargain chances. While we do not find it expedient to publish prices at this time it will be to your interest to visit the store before you make pur chases today or tomorrow. Clip the prices from all other advertisements today, bring them in and see how much you can save by trading at a steady-going store. The store will be closed Friday. The new store will be open for business Saturday. Today and tomorrow will be harvest days for wise women. COULTER DRY GOODS CO. Corner Spring and Second Streets has indemnified us for the enormous war expense, our mission will be done." THE STANDING ARMY Will Be More Than a Skeleton in Fu ture—Considering the Expense NEW YORK, Aug 2.—A special to the Times from Washington says: It is well understood at the Department of State that as soon as the preliminaries are settled, Ambassador Cambon's mission for Spain will end and the "further nego tiations" that ure to follow agreement to tha first conditions of the United States will be taken up by chosen commissioners of the United Stutes and Spain, probably ln Lon don. With confidence that these expectations will be realized the administration Is turning its attention to shrinking the great war or ganization that has been created since the prospect of war began to be alarming. The work of expansion and shrinkage may seem for awhile to be going on at the same time, but already arrange ments are being made to cut down public expenses by releasing many vessels* chartered along the coast for services supplementary to the navy. With peace negotiations in sight '.hat task will be urged with vigor. The administration will have Its hands full of work that will be expensive, but promises to be profitable by and by. The President is already interested in the evi dences of friendliness manifested toward the United States in Porto Rico, and members of the administration are inclined to be lieve that annexation will be accomplished at an early day, with the approval of the people, who are about to be released from their allegiance to Spain. The administration does not see Its way to a large sudden reduction of the army. Should any arrangements be made for the withdrawal of troops from the Philippines. It Is not believed that this will be effected before next spring, If as early. A large army, H Is feared, will have to be maintained ir. Cuba until that "stable government" which tha United States has promised shatl be provided In place of the unstable govern ment of Spain, has been set up and been recognized also by the whole world. The administration is inclined to believe that with the Spanish troops withdrawn from Cuba and opportunity afforded for the United States to assist the people In provid ing a government for themselves, rapid progress will be made toward real pacifi cation between tho Cubans and those Span lards who are not bo attached to the mother country that they will feci Impelled to aban don Cuba and return to the peninsula. "If we can get a chance," said a mem ber of the Cabinet, "to assure the people of Cuba, Cuban or Spanish, that all we desire tc do Ib to provide all clasßes a chance to live without being robbed and persecuted and ground down; that we hope to see them successful beyond any dream they have ever had of progress and prosperity; that they shall not continue to slaughter and kill each other because of relations and conditions incidental to the system of mis government Imposed upon them by Spain, there can bo no doubt about the eventual acceptance by the people of our good offi ces toward them. ••If they succeed ln setting up a govern ment for themselves, or find that they are not able to do so without further help, we shall be delighted ln the one case, and re signed, perhaps, to the other and its sig nificance, should the Cubans indicate a plain desire to be associated as a nation with the United States. We have disavowed all de sire to conquer and hold them. We may not be positive when Cuba expresses a desire to be annexed." NEED FASTER SHIPS Bids for the Three New Warships to Be Reopened—Speed Wanted NEW YORK, Aug. 2.—A special to the Times from Washington says: The question of three battleships pro vided for by the new naval program haR been reopened again. It was supposed the matter had been settled when Secretary Long announced a few days ago that the preference would be given ln awarding tho contracts for the construction of the new vessels to the bidders who offered guaran tees of the highest speed, retaining the general characteristics of design as set forth ln the department's circular. It Is proposed now to change these designs completely, to drop everything that has been done and start all over again, with the intention of making the new vessels larger than was intended and speedier and consequently costlier. To do this will require an amendment to the law provid ing for the building of the three battle ships. That law says that they shall be of a displacement of about 11,000 tons and shall not cost more than $3,000,000 each. The board of construction decided to make the displacement 11,500 tons, which it considered as far as it could go and keep within the law. When the plans were first under consideration the board agreed to make the ships practical repetitions of the Illinois type with such improvements that could be added without materially modifying that type. The speed was to be 18 knots. The chief engineer advocated th* sub 3 stitutlon of water tube boilers for the Scotch boilers adopted for the Illinois, but as It was shown that it was not proposed by such substitution to Increase the speed, the board voted down the proposition. Later when the experience derived from the Santiago sea fight showed advantage of speed ln naval warfare, the subject was reopened but It was demonstrated that with the limitation as to displacement and cost Imposed by the law and the restric tion as to the depth of draught Imposed by the shallowness of most of our harbors, it was Impossible to Increase the speed of the ships without either reducing their armor protection or lessening their arma ment. It then was determined to adhere to the general designs laid down, but to give preference In awarding the contracts to the bidders who would offer to produce the highest speed. The proposition now under consideration Is to give the proposed ships a displace ment of 13,000 tons Instead of 11,500 and lo fix their minimum speed at 18 knots Instead of 16. Chief Engineer Melville has been asked to submit designs of the newer im proved machinery, Including water tube boilers, which he proposes to Install, with a view to developing 18 knots speed. Theso designs ready, Chief Constructor Hlch born will Bet Mb bureau of construction and repair to work on designs of a hull to accommodate that machinery with the requisite coal space and the desired bat teries. The new scheme contemplated a main battery of twelve-Inch and eight-Inch guns, instead of thlrteen-inch and eight-Inch as ln the present designs, this change being prompted also by the lessons learned from the Santiago engagement. THE TRANSPORTS An Investigation to Be Hade Concern* ing the Fitting- Up of Them WASHINGTON. Aug. 2.-An effort Will be made by the War Department to ascer tain the official at General Shatter's head quarters who is responsible for dispatch ing to the United Btates transports loaded with soldiers which are alleged to be unflt for the work to which they are put. With this end ln view, Surgeon-General Stern berg has sent the following dispatch to Major Hartford, the Chlfef Surgeon with Shatter's army: "The management of the medical de partment at Santiago Is severely criti cised. Sick and convalescents sent on Quartermaster's transports are said to be overcrowded, not properly supplied with medicines or medical attendance or with suitable light diet. Who Is responsible? Heport ln full and take measures to pre vent similar occurrence ln the future." At the same time a rigid Investigation Is to be made of the charges by the Red Cross officials and others concerning the unfitness of the transport Concho, which reached New York several days ago. Sec retary Algar has taken much Interest lo this matter following so soon the case ot the Seneca, which about ten days since brought to New York a large number of sick and wounded, and which vessel was also said to be unsuitable. The Investi gation will be made by Colonel Heyt of the Inspector-Oeneral's office. General Sternberg feels that Justice Is not clone the officers of his department In the criticisms of the use of the transports In bringing the sick and wounded north, and ln the preparations for the Journey. As a matter of fact, he said today, he did not know that the Concho was to be used for a temporary hospital ship, the first Intimation of the character being when a telegram reached him announcing the arrival of the vessel at Norfolk. The loading of the ship with supplies, includ ing Ice. other than of a medical character does not come under the supervision of his bureau, and his officers, he snys, should not bo charged with any derellctness of that character. Republican High Jinks SACRAMENTO, Aug. 2.—The president's of) the fifteen Republican clubs of this city met tonight and made arrangements tf) open a local headquarters for delegates to the state convention, which meets here on tho 23d. at the Golden Eagle hotel. Re freshments, cigars and a royal welcome will be extended to all visitors. It was further decided to hold a grand lrtgh Jinks at the old pavilion building on the evening of the 23d, at which an excellent program Interspersed with speeches and refresh* ments will be the order. Hold the Philippines CINCINNATI, Aug. 2.—The board of di rectors of the Cincinnati chamber of com merce tonight forwarded to President Mc- Klnley a series of resolutions passed by them begging the president to give com-' nierclal considerations a dominant place ln the work of disposing of the Philippine Islands when making terms for peace with Spain. Was All But Out SCRANTON. Aug. 2,-In tonight's twae> ty-round glove contest between Jim Judge) of Scranton and Dick Case of Utah before the American Sporting club, Judge got the decision at the finish, when ha hid CeMtaw. but out. ■