End of a Monopoly

The U.S., which got into the synthetic-rubber business during World War II because of the natural-rubber shortages, started to get out last week. Of the 27 Government-owned synthetic rubber plants (cost: $500 million; book value: $160 million), the six biggest, heart of the Government's monopoly, were sold; contracts were ready for signing for 20 other plants. (Only one small copolymer plant, at Institute, W. Va., was not bid on.) The first buyers:

P: Goodrich-Gulf Chemicals, Inc. and Texas-U. S. Chemical Co., which jointly bought the big (197,000 tons yearly) plant at Port Neches, Texas. Each company also bought a smaller polymer plant at Port Neches. (Cost of the three plants: $94,347,000; book value: $28,999,000.)

P: Shell Chemical Corp., which bought three Los Angeles plants. (Cost: $51,234,000; book value: $16,019,000.)

The selling job was handled for the Government by Holman D. Pettibone, 65, retired board chairman of the Chicago Title and Trust Co., Leslie R. Rounds, retired vice president of New York's Federal Reserve Bank, and Everett R. Cook, a Memphis cotton merchant. The board first called for bids, then negotiated with the top bidders in an attempt to get a higher price. After seven months of bargaining, the board succeeded in raising original bids "substantially." Exactly how much the Government is getting for its synthetic-rubber plants will not be known until January, when the board reports to Congress, which must finally approve the sales.

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