The Nome nugget., 1942-01-28
Facts On The Governments
 Synthetic Rubber Production

Washington-The American public already has had a tough blow in regard to the use of automobile tires But the inside figures indicate that the blow will be even tougher in the future
 The production of synthetic rubber for tires begun by Germany several years before the war in this country totals only between 1865 and OOO tons for entire year Moreover the new synthec rubber factories financed by the Reconstruction Finance Cor poration will not get into production until April. at the earliest and most of them not until August And when finished, their total production will be only 48000 to 50 900 tons yearly.
 Thus, year from today, we may possibly have a total of 60000 tons of synthetic rubber if we are lucky if the plants are finished ahead of schedule: and if they produce little faster than is expected Compare this 60000 tons the 72000O tons of rubber consumed by the United States during the past year and you get idea why Leon Henderson was so abrupt and tight-lipped about camping down tire consumption
 Rubber Facts
 Here are the new synthetic plants under construc- ton and their schedule of completion:
 Goodyear Apr-May 10000 tons; Goodrich, late August, 0000 tons; Firestone, August O00O tons; U. S. Rubber, August 10000 tons; Standard Oil of La (privae financng) late 1922 5000 to 10000 tons; DuPont (private fnancing), late 1942, 10000 tons
 In addition, the REC announced that plans capable of producing 80,000 tons would be sponsored by the Government. But with the entire nation in race to get defense materials these plants will take another year to get into production if then. Thus, unless we able to send tremendous labor
  the scarcity of shipping is important-it will be that the Unted States has in effect suffered an econ- omic Pearl Harbor And like Pearl Harbor the rubber defeat largely because were mapping
 "BOtleneck' Jesse
 Complacent genial Jesse Jones, whose job it was to lend the money for these synthetic rubber factories, was questioned recently why he had not been more far-sighted. His reply was: "Hindsight is always better than foresight" However since we have many other lessons to learn in this war and since the first President of the United States advised his country men to Hook back for the purpose of profng by Dear Bought Experience, it is worth looking at record on rubber
 The record, as written in the Washington Merry GoRound, shows that early July 13 l940, eight months ago, Edward Stettnius, who had been fully wrong aluminium and didn't want to be wrong again. announced that before the end of July Tt is expected plan for synthetic rubber production will have been worked out which in the future will elim- mate our dependence upon imports
 In the month, Emil Schram of the REC, lived up to StettiniuS announcement by working out plan with Goodrich and Phillips Petroleum to finance rubber plant capable of producing 100000 tons yearly, which at that time was about one-siXth of our con- sumption However, Jesse Jones, who as Federal Loan Administrator outranked REC Chief Schram, stopped the deal The plan fell through and Schram dsgused with interference and prOcraStlnaton, later resigned Six months passed. And Stettinius prediction that would work out plans to become independent of the Dutch East Indies remained only in the paper stage On December 8, 1940, this column reported: "A fun damental difference exists between the Defense Con- mission and Jesse Jones' The Commission believes that production of synthetic rubber should begin immed- lately and wants subsidy of $180 0000 900 to American rubber companies. However, Jesse Jones doesn't be- ieve synthetic rubber needs to be produced large scale The Defense Commission counters with a fore cast of what might happen should all rubber bel cut off from the Dutch East Indies It emphasizes that machinery cannot be set up overnight Stettinus isl really aroused, may appeal to the White House if he doesn't soon move Jesse" Again on Feb. 12 1941, the Merry-Go Round re- tbaI ponderous patience of Jesse Jones' In October Jesse said that the REC might construct government syn thetic rubber plant, but in January he said he had shifted back to the idea of lending money to private ctil hn