War Baby Adoption

After more than two years of worried debate, the U.S. finally decided what to do with its war-born $700 million synthetic rubber industry. Last week a House subcommittee, headed by Michigan Republican Paul W. Shafer, unanimously approved a bill* which the Administration also heartily endorsed. The bill's prescription for the bouncing war baby: permanent adoption by the Government.

Under the bill, the Government would operate--or lease for operation--enough synthetic rubber plants to produce at least 225,000 tons a year. Plants with a capacity of another 450,000 tons a year would be kept in readiness. The rest of the plants (rated capacity: upwards of 175,000 tons) could be sold to private owners under terms which would support the Government's policy of keeping the U.S. self-sufficient in rubber.

Part of the minimum annual output of 225,000 tons will be used to maintain a Government stockpile of 650,000 tons, one year's supply for the U.S. Rubber fabricators will be required to use the rest, i.e., mix a certain percentage with natural 'rubber, as at present.

What did private industry think about the bill? In general, rubber men did not object too much. At current production and prices, the industry would easily use up the minimum tonnage. Opinions may change if the price of natural rubber, now around 22-c- a pound, falls below the price of "American-made," now 18 1/2-c-.

* At the suggestion of B. F. Goodrich Co.'s John Collyer, who dislikes the word "synthetic," the terms "American-made" or "chemical rubber" are used throughout the bill.

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