Evening star., 1942-01-12
.SyntheticSupp|y
To Financed
ByR. &c. Funds
100000 Tons Per
Yeor Are Expected
Under Plans
BY OLIVER MCKEE.

ernoon a s4O0 ,000,O program to
manufacture 100000 tons of
synthetic rubber annually
which. he said, virtually was
enough to end the rubber short
age in the United States by the
middle of 1943.
The loan administrator. mean
while, took steps to stimulate the
domestic production of zinc, lead
and copper. He made public let
ter to Director William S. Knudsen
of the Office of Production Man
agement and Price Administrator
Leon Henderson, offering to pay
premium prices to mining COM
panies which expand their produc-
tion of these metals.
Mr.. Jones estimated that the
United States needs about 100000
tons of rubber a year for military
and limited civilian uses. He ex-
pressed the view at press con-
ference that this country will not
be entirely cut off from rubber sup
plies from the Far East and else
where.
The production of synthetic rub
Der in the United States will be
approximately 10000 tons before the
year ends, he said. The additional
facilities will be built as rapidly as
possible and are expected to be in
11- INa of
year.
Contracts Already Let.
Contracts for capacity of approx
mately $4,000 tons have already
been let by the r. F. C. The eX-
panded program calls for the con-
struction of facilities for the manu-
facture of synthetic rubber to an
nual capacity of 400 900 tons. Mr..
Jones said that he had been assured
by industry that sufficient raw ma
terials are available to manufac-
ture synthetic rubber Ito any rea-
sonable extent"
The companies which will take
part in the program INCLUDE most
Of the major rubber and oil concerns
that are already working in the
synthetic rubber field. The technical
and scientific skill Of several of
these companies, as well as existing
patents, have been pooled to insure
maximum efficiency and production.
The Rubber Reserve Co., an RF.C.
affiliate, and the trade have on
hand and af1oat more than 100000
tons of raw rubber, Mr.. Jones re-
vealed. Furthermore, there are more
than 1000, 900 tons of used rubber
available, he pointed out, which can
be reclaimed and re-worked to pro-
duce at least 100000 tons Of usable
rubber Reclaiming on decreasing
scale will furnish some rubber an
nualy over a period of years, it was
pointed out.
Ready to Supply Capital.
The estimated cost of the new
facilities necessary to manufacture
the raw materials, together with the
processing plants is approximately
S400, 100000 The industry, if it
wishes to, will be permitted to sup
ply any part of the required capital.
The R. F. c.. however. will supply
all the capital, if necessary, for the
expanded synthetic rubber program.
Consumption of rubber in the
United States last year is estimated
at about 5000 tons. Normal civil
ian use will be sharply reduced
through the ban on the construc-
| ton of new automobiles.
Mr.. Jones declined to make any
specific comment on recent criticism
that the r. F. c. had failed to get
production of synthetic rubber
started earlier.
Il do not know anybody who an
ticipated we would be entirely cut
off from the Far East" he said.
Mr.. Jones added that additional
quantities of natural rubber will
be available from South America
and Africa. and some rubber may be
made from the guayule plant.
Far East Supply Cut.
Before the Pearl Harbor attack.
virtually all United States rubber
came from the Far East, but the
Japanese move imperiled or blocked
that source for an indefinite time.
Mr.. Jones explained that details
of the program had not been worked
out. However. the leading oil COM
panies, including Standard Oil OF
New Jersey, Gulf, Phillips, Shell and
Sinclair, are expected to make the
basic material, butadiene.
Various chemical companies and
rubber companies, including Good
year, Goodrich, Firestone and United
States Rubber, will make the inter-
mediate and finish products in the
process. Location of the plants has
not ben determined.
Offers Price Premiums.
Mr.. Jones plan to stimulate the
domestic production of zinc. lead
and copper provides that for COM
panies which produce more of these
metals in the 2l9 years following
February /, than they produced pre-
viously, the Government-owned
Metal Reserves Co. will pay pre-
MUM of 5 cents a pound on the
extra copper and about 234 cents q
pound on the extra lead and zinc
produced.
Mr.. Henderson is expected to an
nounce a quota plan to enable the
producers to determine how they
can get these premium prices.
Mr.. Jones said the premium would
bring the price on extra copper to
about II cents per pound, extra
zinc to II cents and extra lead to
9A cents.
Asked about plans to finance ad-
ditional aluminium and magnesium
plants, Mr.. Jones said he was wait
ing for the o. P. M. to decide where
power facilities are available.