Evening star., 1923-04-14
President and Members of
Board Decide to Consoli-
date Foreign Trade Lines.
SALES ARE CONDITIONAL
ON MAINTAINED SERVICE
Government Operation to Continue
if There Must Be Sacrifice
in Disposal.

Decision was reached by President
Harding and members of the, Shipping
Board at 4 two-hour conference today
to proceed at once TO the consollda-
zion of the boards foreign trade lines
s4nd then offer these lines and ships
for sale under the authorization of
The merchant marine act of 1920, con-
ditioned on suitable guaranty OF
maintained service.
The program decided on further
provides that if the government mus
itself unable to sell the ships and
lines without "justifiable sacrlnce
the policy then will be to proceed 10
direct government operation.
The whole policy, as set forth IN a
White House statement after the
conference. was declared to be build
ed upon the basic principle that the
administration was determined that
the United States should have mer-
chant marine. 1t was said that IN
furtherance of that purpose the sup
port of the shipping interests, the
shipping public and the American
people was counted upon.
The discussion today, which re-
suited from the failure of Congress
to pass the administration shipping
bill, were said to have developed that
both the President and the majority
of the Shipping Board membership
operation, and it was explained that
such course would be entered upon
only as a last resort.
Text of Statement.
The White House statement follows: ::
After an extended conference with
the full membership OF the Shipplng
Board and a thorough discussion of
the problems to be solved. the board
unanimously agreed. with the Presi-
dents concurrence, that the chief END
to be sought is the establishment ana
maintenance of an American mer-
chant marine. With the failure of
the subsidy act the board is con.
fronted with its vast possession OF
ships and the heavy losses under the
existing plan of allocated operations
under managing agents
'In compliance with the shipping
act the board will proceed at once
to the consolidation OF foreign trade
lines and then offer the sale of these
lines and ships under the authoriZa-
tion of the law. conditioned on suit
able guaranty of maintained service.
If such sales cannot be made with
out unjustifiable sacrifice of the ships,
then the government will proceed to
direct government operation aggress-
fyeiy perused. In short. there is unan-
imous agreement that the existing
law contemplates and authorizes an
adequate and maintained American
merchant marine. and such a course
will be followed as will fully guar
antee 1t anu contemplate IT'S idl,eT
development.
Members of the board in their con-
ference with the President were in
. possession of the results of a study
conducted by the boards policy COM
rnittee which endeavored to outline
the various possible solutions of the
merchant marine problem.
The policy committees report was
understood to have set forth alterna-
tive propositions. first, that the gov
ernment continue to operate the war
built tonnage and, second, that the
government get out Of the shipping
business as soon as possible through
sale of the ships under guarantee
that the purchasers maintain them
in their present routes.
II is understood that following the
consolidation OF the ship lines. it will
not take longer than sixty days be
fore the board will be in readiness to
enter upon the selling campaign. As
r. matter of fact, this time was set by
Chairman Lasker when asked that
question by newspapermen in the
presence of the President and other
members of the board.