Evening star. [volume] (Washington, D.C.) 1854-1972, 1953-07-22
Selma on>Industry

In asking Congress to enact legislation
providing for sale of the aforementioned
synthetic rubber industry, President Eisenhower
emphasized three essential critera for such
disposal. They were that the Government must
realize full and fair value for the properties,
that the conditions of sale should be directed
at assuring fair competition in the industry
and that the national security interests must
be protected by guarantees that the facilities
will be readily available in time Of emergency.
In its report on the legislation submitted
to the Senate, the Banking and Currency Com
mittee majority likewise emphasized it's con-
Germ for these considerations and expressed
its opinion that adequate safeguards had been
included. On strictly partisan basis a Demo-
cratic committee minority, while favoring sale
of the plants to private industry, complained
vigorously that the protective criteria are not
adequately provided in the legislation. Al
though disavowing hostility toward the five
dominant private companies-which they iden-
titled throughout their dissenting report as the
Big Four and Half"-the minority contended
that provisions of the legislation will make it
easy for the giant companies to bid in the
properties at forced sale" prices and will per-
NIT them to tighten their "monopolistic" grip
on the industry.
Perhaps the most persuasive argument of
table for the proposed SALE The legislation
provides that three-member civilian commits
sion is to handle the disposal and that definite
sale propoSals-after advertisement, bidding
and negotiaton-are to be submitted to Con-
gresS by next June l. Unless Congress specif-
ically dsapproveS, the sales would be approved
as of July /, 1854. 1t was the contention of
the minority that the industry giants, already
operating the plants and fully familiar with
the properties, would be able to meet the vari-
Gus headlines involved, whereas smaller inter-
ested firms would be at a disadvantage not only
in lacking this familiarity but also in requiring
more time to arrange purchase financing
The minoritys reasoning is open to greater
questioning, however, on one other point,
namely their recommendation that the Gov
eminent should use the sale of these plants as
a means of bringing greater competition into
the rubber-processing industry. Their COM
plant, in effect, was the familiar one against
bignesS. Much of American industry-in steel,
automobiles, chemicals and various other lines
has tended to bigness. Much of it's efficiency
and chronological advance has resulted from
this concentration of management. The anti
trust laws and the controls exercised by Federal
regulatory bodies we're devised to protect the
public interest from any evil effects of bigness
The synthetic rubber industry was created
to meet wartime emergency. Us sale to pri-
vate interests is in keeping with policy views
at the time of its creation and as expressly
set forth in the Rubber Act Of 1913. It's dis
posal should take place under terms which meet
the criteria emphasized by President Eisenhower
but not necessarily as an instrument for "re-
forming" q major American industry.