Ruebler UNITED STATES OF AMERICA WAR PRODUCTION BOARD WASHINGTON, D. C. United States office a »« REPORT of the DIRECTOR of RUBBER PROGRAMS to the WAR PRODUCTION BOARD »« November 3, 1945 For sale by the Superintendent of Documents, U. S. Government Printing Office, Washington 25, D. C., price 5 cents. 27 43 FOR VICTORY BUY UNITED STATES WAR BONDS AND STAMPS WAR PRODUCTION BOARD WASHINGTON 25, D, C. November 3, 1945 HD 9161 ,452 155 2 1965 Buti Dear Mr. Krug: IN REPLY REFER TO: I am submitting herewith my report as Director of Rubber Programs. The report speaks for itself. However, in transmitting it to you, I wish to take occasion to speak of the splendid work of the men in the Rubber Bureau and of the fine cooperation rendered to this office and to the Bureau by the rubber industry. The sudden occurrence or VJ-Day threw into the laps of the Rubber Bureau a tremendous number of problems that required prompt and vigorous action. This action was taken by the men in the Bureau with speed and intelligence. The result was a shift from all-out wartime production to production of peacetime pro- ducts with a minimum of loss of time and tonnage. The problems of meshing the rising supply of natural rubber with America's full-grown synthetic rubber industry are tremendous. The same intelligent and vigorous effort on the part of the Rubber Bureau and the same thorough-going cooperation from the rubber industry are required if this meshing is to be done without clashing of the gears. In conclusion, Mr. Tisdale and I want to take this occasion to tell you how much we appreciated the opportunity of working with you and with the staff of the War Production Board. Sincerely yours, Ks Werbow R. S. Wilson Director Rubber Programs. Mr. J. A. Krug Chairman War Production Board Washington, D. C. See page 8 for Index WAR PRODUCTION BOARD Report of the Director of Rubber Programs I. INTRODUCTION Unconditional surrender of Japan to the Armed Forces of the United Nations in August drastically altered many of the major problems and most of the ob- jectives of the rubber manufacturing in- dustry. Therefore, this report deals with the objectives and problems pre- sented while this country was still at war with Japan and the many changes in- volved in rapid reconversion to peacetime production, whereby this country will be supplied as quickly as possible with the thousands of articles containing rubber on which our present-day civilian econ- omy is based. In view of the fact that the War Pro- duction Board, having accomplished its mission, is to be succeeded by another Government agency-the Civilian Pro- duction Administration-it seems proper to include in this report not only the sit- uations that have been dealt with during the past four months, but to incorporate a series of comprehensive charts and a table that will make available in one place statistics which deal with natural rubber consumption and price, synthetic rubbers, reclaimed rubber and tire pro- duction. II. JULY 1 TO AUGUST 14; VJ-DAY A. Cutback in December Military Truck Tire Program: Following VE-Day, the level of military truck tire requirements was reduced on several occasions. The Rubber Bureau had been adjusting to the level of essential military and civilian requirements. As each adjustment was made, it was studied in relation to the existing and currently authorized new capacity of the industry. It became apparent that the additional capacity for production of truck tires provided by the December Military Truck Tire Program was not needed in its en- tirety. While serious shortages in meeting current requirements still ex- isted, particularly in the large-size truck tires, it was clear that, by the time the new plants and expansion would be com- pleted and in production, capacity would far exceed the latest projected require- ment level. A comprehensive study was under- taken, comparing truck tire requirements with existing and potential capacity. It was determined that a reasonable cush- ion of capacity should be provided over the average level of requirements in order to allow for contingencies. This study indicated that, if the new plants under construction and those other expansion projects requiring the longest time to complete and get into full production were eliminated, retaining only those ex- pansion projects that would be completed and in production by the early part of 1946, a cushion of 12 per cent of average requirements would be provided. If all expansions were to be carried to com- pletion, the capacity would be 37 per cent in excess of average requirements. Be- fore final recommendations were made as to which projects should remain in the Program, a very careful check was made of the status of each project. In addi- tion to estimated completion dates, the cost per pound of the scheduled produc- tion from each expansion project was considered and, based upon these two factors, recommendation was made that certain projects should remain in the Program. On July 18, 1945, the detailed recom- mendation for reduction in the Decem- ber Military Truck Tire Program was dis- cussed with representative officials of the War Production Board and the claimant agencies interested in tires. A decision was reached to reduce the program in the amount of 86 million dollars of the initially authorized cost. This change, together with cancellations previously effected prior to July amounting to 24 million dollars of the initial cost, reduced the December Military Truck Tire Pro- gram to an initial cost of 22 million dollars from the original 132 million dollars. Estimates made at the time indicated that the net saving of Govern- ment funds might approximate 55 mil- lion dollars. After these cancellations had been ef- fected, there still remained on a tonnage basis an increase of approximately 32 per cent in total truck tire capacity above the industry's declared capacity as of November 1944. The following table presents the sta- tistical picture on a quarterly tonnage basis: INDUSTRY TRUCK TIRE CAPACITY-QUARTERLY (BASED ON 75 WORK DAYS) [Unit-Pounds] Industry, declared November 1944 Maximum, all expansions 336, 000, 000 537, 000, 000 Remainder, Net change. after July 18 after July 18 cancellations cancellations 445, 000, 000 +32% Complete cancellation of this Program after VJ-Day reduced the projected 445 million pound capacity. However, ca- pacity will remain in excess of that de- clared in November 1944, because a cer- tain proportion of the expansion will be completed by industry at its own ex- pense. B. Conversion of Truck-Tire Capacity to A-3-b Tires (9.00 thru 11.00 cross sec- tion): During the discussion and the de- cision to cut back the December Military Truck Tire Program, it was clearly shown that insufficient unit capacity existed to attain the projected requirement level for A-3-b tires, while for other groups of tires, the capacity exceeded require- ments. After the program had been re- duced, the Rubber Bureau requested the industry to adjust its existing capacity from smaller tires to A-3-b tires. In addition, the companies, still having ex- pansion projects remaining after the cut- back, were requested to make the neces- sary adjustments, so that A-3-b unit pro- duction would be possible at the expense of smaller truck tire sizes. This adjust- ment program was set up just prior to VJ-Day and, had it been put into effect, the industry would have had balanced capacity for the production of the vari- ous types of tires against the pre-VJ-Day level for 1946 requirements. C. Expediting of Remaining Projects: After the major cutbacks in the truck tire program were effected, it was possi- ble to readjust the delivery schedules for various types of rubber-processing ma- chinery and equipment, so that the po- tential completion dates for the expan- sion projects remaining in the program were considerably advanced. The Rub- ber Bureau continued a close follow-up of the progress of the remaining projects and continually expedited delivery of needed equipment. D. Partial Cutback of Rayon Expansion Program and Reduction in the Level of Carbon Black Program: The reduced requirement level for tires, which re- sulted in the cutback of the tire ex- pansion program also meant that the rubber industry did not need as much rayon tire cord or as much carbon black as had been previously forecast. Therefore, it was possible for the Textiles Bureau to cancel certain rayon expansion projects that had been previously au- thorized, and for the Chemicals Bureau to do likewise for certain planned carbon black expansions. E. Work on Balancing Components and Manpower Continued to VJ-Day: While the reduced level of tire requirements alleviated in a large measure some of the critical situations that had previ- ously developed with respect to compo- nents, careful review was continued on the current production level of rayon and cotton tire cord, carbon black, chafer fabrics, rosin and other important com. ponents. GPO-CPA 17432-—p. 3 : During this period, neither tire nor component materials production ap- proached capacity, because of manpower shortages and work stoppages. The War Production Board, in cooper- ation with the War Manpower Commis- sion, continued its efforts to recruit ad- ditional manpower for the tire plants, tire cord mills, reclaimed rubber plants and other plants producing rubber prod- ucts. In addition, an effort was main- tained to obtain deferment of important workers in industry and to maintain men from the Enlisted Reserve Corps in the tire plants. III. AFTER VJ-DAY on Industry: A. Impact of VJ-Day Generally speaking, VJ-Day found the rubber industry capable of converting quickly from the production of military products to peacetime items. There was no need for basic reconversion of equip- ment and machinery. However, some disruptions occurred, particularly in the plants of the smaller companies due to the sudden termination of military or- ders. On VJ-Day control still existed on the use of various synthetic rubbers and reclaimed rubber. However, appeals were granted immediately, permitting companies, whose military orders had been canceled, to begin production of ci- vilian items made with reclaim or syn- thetic rubber, except tube-grade butyl. B. Demobilization of Controls on VJ- Day: During the first few weeks immedi- ately following VJ-Day, it was possible, because of cutbacks in military procure- ment, to effect the following changes in wartime rubber controls: (1) The quantitative restrictions on the production of A-5 and A-6 truck tires, farm-implement tires, passenger tires, small truck and passenger tubes and camelback were immediately re- voked. This step meant the industry was permitted to produce unlimited quanti- ties of these items. (2) Complete revocation of all restric- tions on the use of reclaimed rubber and the following synthetic rubbers: GR-S, Neoprene (GR-M) and N-Types. This change meant that the industry could produce any kind of product from re- claimed and these synthetic rubbers. Usage control was maintained on natu- ral rubber, natural rubber latex, chlori- nated natural rubber and butyl (GR-I). (3) The supply compared to require- ments for farm-implement and tractor tires, as well as industrial tires made it possible to notify the Office of Price Ad- ministration that rationing of these tires could be discontinued. Also, because of substantial cutbacks in orders for mili- tary rubber footwear, it was possible to recommend lifting of rationing of civilian rubber footwear. (4) Appendix IV to Rubber Order R-1-the Tire Allotment Plan, which for nearly two years was the mechanism for distribution of truck tires for original equipment. military replacement and civilian replacement, was revoked. (5) Rubber Order R-1 was completely revised as of September 27, 1945. This confirmed the actions indicated above and also revoked various other controls, such as production restrictions on golf balls, regrooving of tires, regulations on scrap rubber except segregation of tire parts, etc. This revision eliminated sev- eral reporting forms and simplified those to be continued. Butyl was permitted in the production of all tubes 6.50 cross- section and larger. Rayon tire cord was permitted in all tires with the exception of passenger, motorcycle and bicycle. The tire production pattern, which re- quired manufacturers to use their inter- changeable facilities and available mate- rials to produce first the larger and more critical size tires, was also revoked, per- mitting the industry to adjust its pro- ductive facilities to meet the civilian de- mand for the various types and sizes of tires. C. Cancellation of Remaining Expansion Program: Immediately following VJ- Day, the Rubber Bureau withdrew its sponsorship of all uncompleted federally- financed projects for the production of tires, soles and heels, and other rubber products. The recommendation was made, however, that all Reconstruction Finance Corporation plants and facilities producing tires should be continued in operation at least until such time as tire rationing could be lifted. The Bureau also recommended completion of feder- ally-financed facilities for washing of natural rubber. To date work has not been started on the washing projects, since a review is being made as to the amounts of unwashed rubber that may be received and which will require wash- ing in this country during 1946. The requirements for rayon tire cord and carbon black, needed to support the peacetime production schedule, were de- termined and presented to the Textiles and Chemicals Bureaus respectively. These lower requirements for these two basic components permitted the Textiles Bureau and the Chemicals Bureau to withdraw sponsorship from all federally- financed projects for the production of high-tenacity rayon. IV. PEACETIME PRODUCTION OBJECTIVES A. Tires and Tubes: On August 23, 1945 the Rubber Bureau completed its estimate of tire production on a civi- lian basis for the fourth quarter 1945 and for the year 1946-Basis VIII. In making this forecast, the Rubber Bu- reau used a study of civilian replacement requirements that had been prepared during April, 1945 by experts from the rubber industry under auspices of the Rubber Manufacturers Association. This forecast contemplated fulfilling all de- ferred replacement needs for passenger and truck tires, as defined in the Rubber Manufacturers Association Report, as well as a substantial amount of the esti- mated inventory deficit by the end of 1946. Original equipment tire require- ments were obtained upon the best ad- vice of the Automotive Division, War Pro- duction Board and reasonable quantities were estimated for export and military procurement. Based upon this estimated tire production schedule, forward esti- mates were made of the requirements for component materials, including nat- ural and synthetic rubbers, reclaimed rubber, rayon and cotton tire cord, car- bon black, etc. The tire manufacturing industry was requested to submit on September 1, 1945, their estimates of 1946 production, by quarter, for purposes of confirming the estimated Basis VIII production sched- ule. These industry estimates for truck tires, when totaled, were 9% lower on a tonnage basis for the year 1946 than Basis VIII. Because of the close ap- proximation of the estimates of the Rub- ber Bureau and that of the industry, Basis VIII has been considered as the official schedule for purposes of compo- nent material estimates. Because actual tire production to date has been lower than the Basis VIII fore- cast for the same period and because it now seems indicated that 1946 produc- tion will not be as high as anticipated in Basis VIII, revised estimates have been developed for year 1946. ESTIMATED PRODUCTION 1946 U. S. A. Tires Truck and bus. Passenger and motorcycle Tractor and implement. Airplane.. Industrial.. Bicycle.. Basis VIII Original 8-23-45 Revised 10-25-45 15, 381,000 66, 000, 000 3,275,000 211,000 1,952, 000 8,000,000 13, 770,000 66,060, 000 3,803,000 182,000 2, 102, 000 9, 114, 000 These revised 1946 estimates, with the exception of passenger tires, more closely approximate the industry estimates sub- mitted on September 1, 1945. At the present time, truck tires and passenger tires are still rationed. Truck and bus tires are rationed in two size categories: namely, large truck tires of 8.25 cross-section and larger and small truck tires of 7.50 cross-section and smaller. The War Production Board and its successor agency, the Civilian Pro- duction Administration, being the supply agency for the production of tires, must determine when production of these vari- ous categories is sufficient to eliminate rationing safely. The staff of the Rubber Bureau has met on several occasions with representatives of the Office of Price Ad- ministration to discuss this subject. Current production is climbing, but has not yet reached the levels previously anticipated. Until production becomes greater, a definite date for ending of rationing cannot be established. There are certain remaining controls on the production of tires and tubes that will be maintained during the immediate future. Rubber Order R-1 now prohibits the production of white side-wall pas- senger tires and also makes it illegal to produce more than one grade of truck or passenger tire. The grade now per- mitted is the so-called "100 level". The basic reason for these two controls is to obtain maximum production by permit- ting only one specification product to be made. These controls will be revoked immediately upon ending of rationing. A pending amendment to Rubber Or- der R-1 permits the use of rayon tire GPO-CPA 17432—p. 4 cord in the manufacture of passenger tires of 6.50 and larger cross-section. At the present time, butyl may be used only in the manufacture of tubes having a cross-section of 6.50 or larger. Butyl is a highly desirable synthetic for the production of inner tubes. It is possible that this material may replace natural rubber for tubes after all controls are lifted. The amounts of natural rubber that are permitted in the manufacture of tires and tubes is controlled by Rubber Order R-1. These controls will be main- tained and will be relaxed systematically and progressively pursuant to the recon- version policy described below. It is indicated that most other com- ponent materials, other than those de- scribed above, are in ample supply to meet the projected tire and tube pro- duction schedule for the year 1946. The only possible difficulties that can be fore- seen are the small amounts of cotton broad woven textiles required by the tire industry and the relatively small amount of rosin used in compounding. • B. Other Rubber Products: Generally speaking, there is ample capacity within the industry for the production of all types of rubber products. Many items, manufacturing of which has been prohibited throughout the war, now become important to our peacetime econ- omy. It is also true that many of these items have not been successfully made with synthetic rubber and that, there- fore, it is necessary to consider the use of natural rubber in these as well as in those that have been made throughout the war. Many controls, having been removed on plastics, textiles, etc., the rubber industry is faced with the loss of position, if not allowed proper raw ma- terial to produce serviceable items. This situation will be given consideration as more rubber becomes available. The only remaining controls on pro- duction of rubber items, other than tires and tubes, are confined to the amounts of natural rubber and butyl that may be consumed. The most serious component shortage in this field of general rubber products that threatens orderly reconversion is cotton broad woven fabrics, controlled by WPB Order M-317-a. Production of rubber mechanical goods, footwear, coated materials and other items is be- ing curtailed and, in some instances, threatened by the shortages of cotton textiles. The present controls estab- lished in Order M-317-a give preference to customers producing bags, to satisfy certain export requirements and to man- ufacturers of low-priced clothing. rubber industry has recommended that the controls established in this order be revoked, permitting equal treatment for all consumers of these cotton fabrics. The Rubber Division of the Civilian Production Administration is preparing factual information on this subject for presentation to the Administrator. The The rubber manufacturing industry, synthetic rubber industry, reclaimed rubber industry are relatively small users of rosin (10-12 per cent). It is recom- mended that distribution controls over this material be maintained to protect this small requirement until such time as production of rosin has been increased to somewhat near the prewar levels. V. RECONVERSION TO NATURAL RUBBER The policy of the Rubber Bureau and its predecessor agencies in converting from the use of natural to synthetic rubber during the war was based on re- taining natural rubber in those products, where for quality reasons, synthetic rub- ber could not be substituted. Converse- ly, synthetic rubber was used first and in the greatest quantities, in those prod- ucts where the end product quality was adequate when made of synthetic. In reconverting from the use of synthetic to natural rubber, the same basic policy will be followed in reverse. As more natural rubber becomes available, it will be permitted first in those products where for quality reasons it is required. For example, in the field of tires, greater improvement in tire performance can be obtained by using relatively more natural rubber in truck tires than in passenger tires. Because of the importance of the use of natural rubber for quality reasons in the production of large truck tires and airplane tires during the war, the tire industry on a wartime basis was consum- ing approximately 90 per cent of all natural rubber permitted. Historically, the consumption of natural rubber for production of tires has been 70-72 per cent of the total amounts consumed. Using the historical pattern of natural rubber consumption which is surpris- ingly stable, the Rubber Bureau has calculated the percentage of natural rubber that properly applies to each seg- ment of the rubber industry, such as tires and tubes, mechanical goods, wire and cable, footwear, soles and heels, drug sundries, etc. Each segment of the rub- ber industry will share in the additional supply of natural rubber in the propor- tion its particular segment bears to the total. Within each industry segment, the ad- ditional rubber will be permitted in those products, where it is most needed for quality reasons. In this connection, the Rubber Bureau has the advice of ap- proximately seventeen technical consult- ing committees, representing the various industry segments. In consultation with these committees, a preference pattern is being established within each segment indicating the products in which the in- dustry recommends natural rubber should first be used. Importance of these technical consulting committees cannot be over-emphasized and it is absolutely essential that they be main- tained and permitted to perform the same functions that they have over the past three years. This method of reconverting to the use of natural rubber will cover the major-consuming products, but obvi- ously, will not reach all the many and varied products that might be made with natural rubber. As the process of re- conversion continues, the industry will progressively use larger percentages of natural rubber. An appeal policy will be established whereby manufacturers of miscellaneous items which do not fall within the major program, will be per- mitted to consume rubber in the same relative proportion to their pre-war use as the major-consuming products. The Technical Staff of the Rubber Bureau is preparing a pattern for re- conversion based upon the above policy, which will lay out the steps that can be progressively taken as soon as additional natural rubber becomes available per month. This pattern will be put into effect immediately upon official advice as to rubber availability. With regards to rubber availability, it is important that a clear-cut channel be established for orderly flow of informa- tion, so that advance planning on the use of rubber can be put into effect im- mediately as rubber actually becomes available. The Rubber Development Corporation of the Reconstruction Fi- nance Corporation has been established as the sole purchasing agent for the United States and through its agents, will know when rubber is actually in transit to this country. The Rubber Committee of the Combined Raw Ma- terials Board will be advised of such ship- ments and will determine rubber alloca- tion as between .countries. The alloca- tion decisions of this Committee will be the official source of information upon which the Rubber Division of the Civilian Production Administration will act in amending its controls. VI. CONTINUING RUBBER ORGANI- ZATION The Director of Rubber Programs has reported to the Chairman of the War Production Board. With the abolition of the War Production Board on Novem- ber 3, 1945, this office will be discon- tinued. However, Robert S. Wilson will remain as Advisor to W. L. Batt, Chair- man of the Interagency Policy Commit- tee on Rubber. George M. Tisdale, who has been Assistant Director of Rubber Programs, will also remain as Advisor to Mr. Batt and will be Chairman of the Combined Raw Materials Board Rubber Committee, responsible for allocation of natural rubber to all consuming coun- tries. On VJ-Day, August 14, 1945, the Rub- ber Bureau had 203 employees, 34 of whom were on loan from the industry. Because of the cancellation of the various expansion programs, the revocation of the Tire Allotment Plan and other rub- ber controls, and the revocation of the overall War Production Board controls, such as the Controlled Materials Plan and certain priority procedures, the Rub- ber Bureau staff on September 30, 1945 was reduced to 108 persons, 26 of whom were on loan from the industry. On November 3, 1945, when the Ci- vilian Production Administration re- places the War Production Board, a Rub- ber Division will be created in the Bureau of Reconversion Operations. The staff of the Rubber Division of the Civilian Production Administration will total 78 persons, 17 of whom will be on loan from the industry. There will be three main organizational units in the Rubber Di- vision. The Technical Operations Branch will be responsible for admin- GPO-CPA 17432—p. 5 istering the Rubber Order R-1 controls as they pertain to the use of natural rub- ber. This Branch will be staffed with technical experts from the industry, who will work with the various consulting technical committees in recommending the pattern of reconversion to the use of natural rubber. A Production Staff will be responsible for maintaining informa- tion on production of tires and other rub- ber products, and assisting the industry in overcoming any bottlenecks to orderly reconversion. This group will be respon- sible also for determination of monthly quotas for tire rationing. The Rubber Supply and Statistics Branch will be re- sponsible for the allocation of natural rubber and will also collect and assemble all statistics regarding natural rubber consumption and tire production. W. J. Sears, who has been directing the activities of the Rubber Bureau since April 1, 1945, as its Deputy Director, will become Director of the Rubber Division. E. D. Kelly, who has been Assistant Di- rector of the Rubber Bureau in Charge of Staff Operations, will become Deputy Director of the Rubber Division. George L. Allison will be Assistant Director for Technical Operations, Carl Gibson As- sistant Director for Production and Her- bert M. James will be Chief of the Rubber Supply and Statistics Branch. During the life of the Rubber Bureau of the War Production Board, the rubber industry has responded magnificiently in furnishing personnel to assist in the Government program, has cooperated wholeheartedly in furnishing informa- tion and supporting the Rubber Bureau in its operation. As retiring Director of Rubber Programs, I can assure you and the Administrator of the Civilian Pro- duction Administration that the rubber industry will continue its splendid record of cooperation and will continue to sup- port the Rubber Division in achieving the objectives of the Civilian Production Ad- ministration. VII. SUMMARY OF IMPACT OF WAR ON RUBBER INDUSTRY AND ITS RESPONSE All segments of the rubber manufac- turing industry deserve the thanks of a grateful nation for a truly tremendous and complex effort during World War II. The combined technical, scientific and engineering ability within the industry rose to the occasion, helping to develop the absolutely necessary synthetic rub- ber program. Cooperation with similar technicians of the petroleum, chemical and construction industries made pos- sible a vital new material. In addition, the chemists and physicists of the rubber VIII CHARTS AND TABLE industry took this new raw material and developed methods by which synthetic rubbers could be made into useful end- products. Production management of the rubber companies were faced with the largest demands ever encountered. Rub- ber manufacturing facilities were ex- panded. As these came into production, new manpower had to be found and trained. The cooperation of labor-its long hours of work, its no-strike pledge and in late 1944, seven-day week in the tire and tube industry, were factors that made all-time high production possible. Success or failure to supply the maximum number of necessary rubber products to win the war quickly was dependent basi- cally on the achievements of labor and industry. The fact that our armies have been victorious in Africa, Europe and the Pacific was brought about at least in part by the tremendous efforts of the rubber manufacturing industry. Although it was necessary to limit the use of almost all rubber products on the homefront and to see that such products as were manu- factured went to the most essential uses, the civilian transportation of this coun- try did not break down. There were sev- eral pretty close calls, but on each occa- sion the rubber manufacturing industry put forth greater effort, so that there was no serious delay due to a shortage of rub- ber products. THOUSANDS OF LONG TOWS UNITED STATES 1000 BALANCE OF WORLD 800 600 400 200 EXHIBIT A WORLD NATURAL RUBBER CONSUMPTION YEARLY THOUSANDS O LONG TONS CENTS PER-LB 1000 100 800 80 60 400 40 200 20 EXHIBIT B NATURAL RUBBER PRICES RIBBED SMOKED SHEETS N.Y. SPOT PRICE О 1910 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 EST 1913 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 100 80 40 20 GPO-CPA 17432-p. 6 MOUSA ROS „ONG TONS 40 NATURAL, EXHIBIT C RUBBER CONSUMPTION IN THE U.S.A. MONTHLY RECLAIM 20 THOUSANDS LONG TORS PER CENT 100 80 60 SYNTHETIC 60 RECLAIM 1 NATURAL SYNTHETIC –, 1940 1941 1942 1943 1944 1945 1946 20 о 40 20 EXHIBIT E U.S.A. PRODUCTION EXHIBIT D PERCENT SYNTHETIC RUBBER CONSUMPTION OF G TOTAL NATURAL & SYNTHETIC U.S.A. : 1942 1943 1944 1945 Truck & Bus Tires Passenger Car Tires Tractor & Impl. Tires Airplane Tires Camelback Pounds Year 1939 7,680,000 49,933,000 1,100,000 * 33,000 54,411,000 * 1940 8,221,000 50,965,000 1941 11,148,000 50,392,000 1,500,000 * 2,100,000 * 75,000 49,488,000 * 170,000 75,920,000+ 1942 13,033,000 2,461,000 1943 12,927,000 7,628,000 430,000 * 914,000 625,000 106,082,000 * * 1,033,000 236,715,000 * 1944 14,713,000 18,793,000 2,105,000 1945 Est. 16,600,000 28,200,000 2,600,000 1,417,000 353,744,000 800,000 321,000,000 1946 Est. 13,760,000 66,000,000 3,800,000 182,000 263,000,000 * Shipments PER CENT 2-7416 80 60 40 20 GPO-CPA 17432--r 7 UNIVERSITY OF MICHIGAN 3 9015 03810 9057 THOUSANDS LONG TONS 800 600 EXHIBIT F U.S.A. NATURAL AND SYNTHETIC RUBBER CONSUMPTION MILITARY VS CIVILIAN YEARLY ESTIMATE THOUSANDS LONG TONS BOO 600 CIVILIAN 400 400 200 MILITARY S (INCLUDES LEND LEASE) 200 IX. CONCLUSION O 1941 Now that our arms are victorious over our enemies, the rubber manufacturing industry is faced with new responsibili- ties. Tires, tubes and thousands of other rubber products must be produced to sup- ply a nation that has been starved of rubber goods. There is a tremendous pent-up demand for products made of rubber for civilian transportation, indus- trial use and household consumption. These demands will keep even the great- ly expanded facilities of the rubber man- ufacturing industry busy for many months to come. A summary review of rubber during the war period will show: (1) Ninety per cent of our natural rubber supply was cut off in February, 1942. (2) We had on hand or afloat at that time approximately 650,000 tons of nat- ural rubber. (3) This stockpile, conserved by strin- gent measures, gave us two years in which to develop a substitute for natural rubber. 1942 1943 1944 (4) In those two years an entirely new source of supply of rubber was created- the American synthetic rubber indus- try-capable of producing 1,200,000 tons of synthetic rubber annually. (5) In 1941, America's rubber prod- ucts were made of 99% natural rubber and 1% synthetic rubber; in 1945, Amer- ica's rubber products were made of 15%. natural rubber and 85% synthetic. (6) In the third year after the loss of Singapore, our total rubber consumption (natural and synthetic) rose to a peak higher than any previous year in our his- tory. (7) While the synthetic rubber poly- mer is not in all respects the equal of natural rubber as yet, it did the job and did it well. (8) Broadly speaking, no vehicle, mili- tary or essential civilian, stood still for lack of tires and no military operation was delayed because rubber equipment was lacking. These simple, unembellished facts tell more strikingly than pages of comment and statistics how America rose to over- 10 1945 come the most frightening industrial aspect of the sudden Japanese attack. Great credit must be given to the Rub- ber Survey Committee (Messrs. Baruch, Conant and Compton) for having stressed the essentiality of rubber and for having pointed the way by which this nation could achieve the develop- ment of an adequate supply of rubber. Today, we are faced with the problem of meshing our new synthetic rubber industry with new supplies of Far East plantation rubber which will be avail- able in the months ahead. This is one of the momentous problems that con- fronts the nation. Development of the groundwork for deciding these problems is in the good hands of the Interagency Policy Committee on Rubber established by the Office of War Mobilization and Reconversion. R. S. WILSON, Director, Rubber Programs. GEORGE M. TISDALE, Assistant Director, Rubber Programs. NOVEMBER 3, 1945. INDEX Page Page I. INTRODUCTION II. JULY 1 TO AUGUST 14; VJ-DAY. A. Cutback in December Military Truck Tire Program... 3 3 3 V. RECONVERSION TO NATURAL RUBBER VI. CONTINUING RUBBER ORGANIZATION. VII. SUMMARY OF IMPACT OF WAR ON RUBBER INDUSTRY AND ITS RESPONSE. 5 5 6 B. Conversion of Truck-Tire Capacity to A-3-b Tires (9.00 through 11.00 cross section).. VIII. CHARTS AND TABLE.... 6 C. Expediting of Remaining Projects.- 33 Exhibit A-World Natural Rubber Consump- tion... 6 D. Partial Cutback of Rayon Expansion Pro- gram and Reduction in the Level of Carbon Black Program.... Exhibit B-Natural Rubber Prices Ribbed Smoked Sheets... 6 3 E. Work on Balancing Components and Man- power Continued to VJ-Day- Exhibit C-Rubber Consumption in the U. S. A. Exhibit D-Percent Synthetic Rubber Con- 7 3 III. AFTER VJ-DAY. 4 sumption of Total Natural & Synthetic- U. S. A.... 7 A. Impact of VJ-Day on Industry.. 4 Exhibit E-U. S. A. Production... 7 B. Demobilization of Controls on VJ-Day- C. Cancellation of Remaining Expansion Pro- gram.. 4 Exhibit F-U. S. A. Natural and Synthetic Rubber Consumption Military vs. Civilian.. 8 4 IX. CONCLUSION.. 8 IV. PEACETIME PRODUCTION OBJECTIVES. A Tires and Tubes.. B. Other Rubber Products.. 4 4 5 GPO-CPA 17432-p. 8