REFERENCE Rubber UNITED STATES OF AMERICA WAR PRODUCTION BOARD Rubber Bureau WASHINGTON, D. C. » « 1944 YEAR END REPORT » « February 1, 1945 For Sale by Superintendent of Documents, U. S. Government Printing Office, Washington 25, D. C., Price 5 Cents 45 HD ا حمااام • U SL 1945 TABLE OF CONTENTS Page VII. COMPONENT MATERIALS Continued. Page 1. SUMMARY 2 Carbon Black…. 6 Beadwire..- 6 II. GENERAL 3 Miscellaneous…. 6 III. TRUCK TIRE AND TUBE PRODUCTION_ 3 VIII. MANPOWER 6 History 3 IX. MACHINERY AND EQUIPMENT……… 6 Current Situation___ 3 Truck Tire Production Schedule.-- Review IV. PASSENGER CAR TIRES_ V. CRUDE RUBBER AND CONVERSION TO SYN- THETIC RUBBERS……- VI. SYNTHETIC RUBBERS…. VII. COMPONENT MATERIALS.. Rayon and Cotton Tire Cord.. Cotton Tire Cord... 3 4 4 сл 5 5 6 XI. ORGANIZATION 6 XII. CONCLUSION…. 5 X. MISCELLANEOUS RUBBER PRODUCTS.. Bogie Rollers and Tank Treads_ Mechanical Goods.. Footwear, Soles and Heels___ Drug Sundries and Specialties. Coated and Proofed Materials. Camelback and Repair Materials_ Scrap and Reclaim Rubber_. 7 7 7 7 7 7 7 7 7 7 I. SUMMARY 1. Increased production of tires and tubes represents the number one war production problem. To meet this problem two specific actions have been taken. First, a concentrated drive to man fully the industry and second, expansion pro- grams which will increase the potential capacity of the In- dustry from approximately 4,000,000 truck tires per quarter to approximately 7,000,000 truck tires per quarter. 2. The translation of the increased tire and tube program into crude and synthetic rubbers has again made crude rub- ber the most critical of all strategic materials. 3. The greatly increased synthetic rubber requirements for the tire and tube program can be met by comparatively small additions to the synthetic rubber plants plus the necessary in- creased amounts of feed stocks and chemicals, with sufficient manpower to operate the plants at the increased production rate. 4. The impact of a greatly increased tire and tube produc- tion schedule has created shortages in certain important com- ponents, namely, rayon and cotton tire cord, carbon black and beadwire. The production of each of these components must be increased, if the production goals for tires and tubes are to be realized. 5. The machinery and equipment required for the tire and tube expansion program must be given the highest priority, must be expedited to every extent possible and the pool and other orders covering same liquidated with the equipment and machinery delivered on or before June 30, 1945. 6. Production of other short supply rubber goods must be expedited by supplying manpower where manpower is needed, or textiles where textiles are needed, and through the expedit- ing of such expansion programs as may pertain to the indi- vidual item. Amongst these other rubber products are in- cluded hose, belting, footwear, soles and heels, etc. 7. The manpower drive must be continued with all impetus, a thorough follow-up continued on Army and Navy personnel furloughed to the program and the problems of draft defer- ment geared to the over-all problem. 8. There must be a continuation and an extension of the conservation policies designed to obtain the last mile from every existing tire. This obviously includes a coordinated policy of factual information release and an avoidance of mis- leading statements as to the availability of tires to the public. 9. The tire program for 1945 calls for tremendous effort on the part of the industry, labor and many Government agencies. Close cooperation and a mutual understanding of the tasks ahead are essential, if production is to meet or exceed schedules. GPO-War Board 14588-p. 2 II. GENERAL On September 1, 1944, a Rubber Bu- reau was established in the War Pro- duction Board to assume the majority of the functions of the Office of Rubber Di- rector. By Executive Order, the respon- sibility for the production of synthetic rubbers and the research and develop- ment pertinent to same was transferred to Rubber Reserve Company. The Rubber Survey Committee Re- port, better known as the "Baruch Re- port" had been the textbook for the Of- fice of Rubber Director. The change of one word in each of the following two sentences from the Baruch Report gives a poignant definition to the rubber prob- lem of today: "But if we fail to secure quickly a new [rubber] tire sup- ply our war effort and our domestic economy both will collapse. Thus the [rubber] tire situation gives rise to our most critical problem." In November 1944 the military sub- mitted requirements for the first quarter of 1945 far in excess of previous esti- mates for that period. It was recognized that these new requirements were in ex- cess of the maximum capacity of the in- dustry. The Rubber Bureau has devel- oped new schedules which will produce the required number of truck and bus tires in the minimum time. When these expansion projects are in full capacity over 28,500,000 truck and bus tires per year can be produced. This figure is believed adequate to cover the essential requirements of all claimant agencies. III. TRUCK TIRE AND TUBE PRODUCTION History: During 1943 an expansion program for the tire and tube industry was initiated by the Office of Rubber Di- rector which was designed to offset such production losses as experience at that time indicated would result from the use of synthetic rubber. The extent of this program gave full consideration to the tire and tube requirements then en- visioned. Approximately $100,000,000 was involved in this expansion. With minor exceptions it was financed by the industry with tax amortization certifi- cates. In the Spring of 1944 the requirements of the military for large tires made nec- essary a further expansion known as the high flotation program. The need for these extremely large tires was dictated by the changing methods of conducting the war. The requirements were ex- pressed in quantities far beyond the abil- ity of the industry to produce. It was believed that the completion of these WAR PRODUCTION BOARD Rubber Bureau 1944 Year-end Report two programs would provide the facili- ties necessary to produce by size and type all truck tires required for either mili- tary or essential civilian purposes. The first expansion program was largely completed during the closing months of 1944 and the high flotation program will be completed prior to the conclusion of the first quarter of 1945. Current Situation: Military require- ments for the fourth quarter of 1944 sub- stantially exceeded the estimate proj- ected for the period. The Ruber Bureau recognized that these totals could not be met in the fourth quarter but felt certain that upon completion of the scheduled programs, minor additions and full man- power would provide the production nec- essary to meet the levels required should demand continue in the first quarter of 1945 at fourth quarter levels. In No- vember of 1944 new requirement figures for the first quarter of 1945 were filed with the Rubber Bureau. These require- ments represented totals that bore little relationship to prior estimates. It was obvious that drastic action would have to be taken to provide the United Na- tions with tire and tube facilities which the war experience had dictated as ab- solutely essential. Production estimates were obtained from the tire and tube industry to reflect their maximum production by size and type from installed facilities, including additional equipment then on order due to be delivered in the near future. The estimates assumed that manpower would be made available to operate production equipment at full capacity. They also assumed that new equipment would be delivered as scheduled and that there would be no shortages in the component materials required for production lines. An analysis of these figures indicated that the facilities of the industry were inadequate to meet the latest stated needs of war. Industry meetings were held and a new tire expansion program was developed. This program falls into two specific parts: 1. Expansion within-existing-walls or with minor additions to floor space. 2. New plants. The expansion within-existing-walls or with minor additions to floor space bal- anced the facilities of the industry to produce tires and tubes. It represented an actual maximum production which could only be exceeded by the addition of entirely new plants to the industry with due allowance for the present effi- ciency of production from existing equip- ment. The completion of the first phase of the program would give an industry potential of approximately 5,600,000 truck tires per quarter. As this amount was inadequate to meet requirements, it was determined to obtain at the earliest possible date 1,500,000 additional truck tires per quarter through the building of such new plants as might be required to bring industry capacity to a total of 7,100,000 truck tires and tubes per quarter. The new program included a reason- able insurance factor beyond the number of tires and tubes actually stated as re- quired during the first quarter to do the essential military and civilian job of con- ducting an all-out war. Requirements for the second quarter have now been presented. They are considerably high- er than had been anticipated. If the expansion program needed further justi- fication, the new statements of require- ments prove the necessity for the pro- gram. Whereas the meeting of require- ments for tires and tubes is the major objective, the expansion program has an important corollary, namely, to liquidate the accumulated deficits resulting from failure currently to meet requirements. The military have cooperated towards the most efficient use of the tires and tubes allocated to them. Their alloca- tions are, however, below requirements and, if not corrected promptly, may prejudice the conduct of the war. The civilian economy has been held to a mini- mum of tires and tubes. Failure to pro- vide promptly a greatly increased flow of tires and tubes to civilian activity will curtail or stop many auxiliary functions essential to the production lines of this country. The entire program was approved in late December by the War Production Board and received the concurrence of the Production Executive Committee of the War Production Board. was Each company currently producing truck tires and tubes was asked to par- ticipate in the expansion. The program oversubscribed by the industry. After due consideration of all factors, in- dividual allocations were made and con- firmation received from the companies. The projects in large measure have been filed and work on many of them is al- ready under way. Truck Tire Production Schedule: The Rubber Bureau has scheduled a mini- mum quarterly production goal for tires and tubes which covers both 1945 and 1946. The following tabulation outlines this schedule by tire groups for 1945. Inasmuch as detailed requirements will doubtless be changed during the year, no group tabulation is given for 1946. However, when all projects in these ex- pansions are completed, it is anticipated that maximum production will be in ex- cess of 28,500,000 truck and bus tires per year. GPO-War Board 14588 p. 8 Tire TRUCK TIRE PRODUCTION SCHEDULE-1945 First [U. S. A. manufacture] Third Fourth Second group | quarter | quarter | quarter | quarter A-1.. 31, 175 28,975 26, 475 A-2... 13.005 15,005 A-3-8. A-3-b. A-4. 104, 167 183,672 15, 605 205, 028 24, 875 15, 605 212, 028 Year 111,500 59.220 704.895 4,690, 326 914, 492|1, 101, 518|1, 234, 658|1,439, 658 734, 294 947, 455|1, 152, 407|1, 457, 407 4, 291, 563 A-5...1, 923, 556|2, 180, 996/2, 512, 361 2, 516, 861| 9, 133, 774 A-6.. 1, 155, 262|1, 269, 050|1, 305, 8241, 305, 824 5,035, 960 Total 4,875, 951 5, 726, 671 6, 452, 358 6, 972, 258 24, 027, 238 Due to the urgency of the situation every possible effort is being made to ex- ceed first quarter goals by the greatest possible margin. Review: To appreciate the problem which has been placed upon the tire and tube in- dustry, it is necessary to review what the industry has done in the past and compare it with what it is being called upon to do in the future. Exhibit “A” shows the total production of tires from truck building facilities from 1936 through 1944 with the levels projected for 1945 and 1946. The average pre-war year saw approximately 8,000,000 tires produced on these facilities. The year 1944 saw 16,000,000 tires produced. These totals include large airplane and rear tractor-implement tires as well as the truck and bus tire groups given in the preceding table for 1945 scheduled production. The comparison is even more striking when it is realized that the average truck tire of today is substantially greater in EXHIBIT "A" · size and weight than the average truck tire of a pre-war year. Exhibit "B" shows this latter point in its portrayal of milled stock used in the production of these particular tires. With an average milled stock of slightly over 200,000 long tons in pre-war years, 1944 showed slightly over 600,000 long tons consumed in the production of these particular tires. These increases in 1944 take on even greater importance when it is real- ized that in 1944, eighty-five per cent of the raw material consumed was syn- thetic rubber. In other words, the in- dustry has taken a new series of raw materials and despite the almost in- superable problems involved, has nearly trebled the quantity of milled stock used in the production of truck and bus, large airplane and rear tractor-implement tires. IV. PASSENGER CAR TIRES Due to shortage of cotton cord, carbon black and beadwire, it has been necessary to curtail the scheduled production of passenger car tires. Increased demands for truck tires have had their reflection in the increasingly tight position of the components required in tire production. Passenger car tire production has there- fore been tied to the availability of cotton tire cord and each producing company has been given a quota of cotton tire cord as the limiting factor in its passen- ger car tire production. Slightly less than 5,000,000 passenger car tires will be produced during the first quarter of 1945. Production schedules for subse- quent quarters probably will remain the same but will be determined by the avail- TOTAL · PRODUCTION · FROM · TRUCK · TIRE BUILDING · FACILITIES BY YEARS · 1936-1946 (INCLUDING TRUCK AND BUS, LARGE AIRPLANE AND REAR TRACTOR-IMPLEMENT TIRES) 35 MILLION · TIRES • ability of facilities, manpower and com- ponents, which in turn are directly in- fluenced by truck tire requirements and the ability of the industry to meet the latter. To reflect the lowered produc- tion of passenger car tires, the January quota given the Office of Price Admin- istration was cut to 1,800,000 and the February quota has been established at 1,600,000 tires. Whereas it is believed that the pro- duction of passenger car tires at current levels will be adequate to meet the most essential demands from B and C card holders, it is realized that a serious shortage impends unless all conceivable conservation measures are practiced by the individual motorist. The attached Exhibit "C" shows passenger car tire pro- duction from 1936 to date. In 1944, 18,- 864,000 passenger car tires were pro- duced. Inasmuch as only a relatively small number were required by the mili- tary, it was possible to release 17,475,000 passenger car tires to the Office of Price Administration for rationing to essen- tial civilian use during the year. As a result of motorist cooperation to obtain the last mile of travel from existing tires and the careful job of screening applica- tions by the tire inspection stations and the local rationing boards, there was no accumulation of applications for passen- ger car tires from B and C card holders awaiting release of more tires on De- cember 31, 1944. Whereas 1945 and 1946 show increasing production levels over those achieved in 1944, it is improbable that they will be realized unless the factors heretofore listed as determining passenger car tire EXHIBIT "B" FINISHED · MILLED · STOCK · REQUIRED · FOR · TIRES · BUILT ON TRUCK · TIRE · FACILITIES · BY YEARS · 1936-1946 (INCLUDING TRUCK AND BUS, LARGE AIRPLANE AND REAR TRACTOR-IMPLEMENT TIRES) 35 1,400 SCHEDULED PRODUCTION • THOUSAND LONG TONS • 1,400 ра SCHEDULED PRODUCTION 30 25 30 1,200 25 1,000 1,200 1,000 20 20 800 800 15 15 600 GOO 10 5 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 10 400 5 200 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 400 200 RUBBER · BUREAU WAR - PRODUCTION BOARD 15 JANUARY 1945 • RUBBER BUREAU WAR PRODUCTION BOARD · 15 JANUARY 1945 GPO-War Board 14588—p. 4 production show radical change. The valley of supply between 1941 and 1946 represents an accumulating deficit to be made up to achieve normalcy in the sup- ply-demand position for passenger car tires. V. CRUDE RUBBER AND CONVERSION TO SYNTHETIC RUBBERS During the Summer of 1944 new sup- ply and consumption of crude rubber were approximately in balance. Rela- tively small net withdrawals were made on the stockpile during 1944. Last year the production schedules for 1945 con- templated only minor drains upon the stockpile and it was believed that the sup- ply would be adequate. Present produc- tion schedules have changed this pic- ture and crude rubber once again be- comes the most critical of all strategic materials. The conversion program from crude to synthetic rubbers has progressed to a point where further conversions are rel- atively minor, both in number and in the quantities of crude rubber involved. They are, however, being followed dili- gently and will be made effective imme- diately the technological problems are solved. Present production schedules in 1945 will consume approximately 144,000 tons of crude rubber resulting in a net stock- pile loss for the current year of approxi- mately 35,000 tons. Inasmuch as the United States stockpile position as of January 1, 1945, was approximately 96,000 tons, it will decline to approxi- · EXHIBIT "C" • mately 61,000 tons as of January 1, 1946. The crude rubber situation becomes even more critical in 1946. VI. SYNTHETIC RUBBERS Statements of requirements for all types of synthetic rubber have been filed with Rubber Reserve Company. These requirements have been broken down by types of synthetic rubber and by quar- ters during 1945 and 1946. There is insufficient GR-I (Butyl) to meet over-all tube requirements. The deficit will be made up by substitution of GR-S. Production estimates indicate, however, that there will be an adequate supply of Butyl to meet airplane and truck tube requirements for military and essential civilian needs. The Rubber Bureau does not feel justified in request- ing new Butyl plants to meet the require- ments for tractor and implement, indus- trial, passenger and bicycle tubes, but has asked that all within-plant expansions be made to achieve maximum production. We are advised by Rubber Reserve Company that the required quantities of GR-M (Neoprene) and GR-S can be pro- duced provided the plants are supplied with adequate feed stocks and additional manpower for the much larger tonnage to be turned out in 1945 and 1946. Pro- duction in 1944 and the requirements for 1945 and 1946 are shown below: 1946 re- quirements quirements 1944 pro- duction 1945 re- GR-S.. 608, 834 881,000 1,054, 000 TOTAL PRODUCTION OF · PASSENGER · CAR AND MOTORCYCLE TIRES BY YEARS ·1936-1946 • • The increased GR-S requirements in the last half of 1945 and 1946 are sub- stantially beyond the present capacities of the copolymer and raw material plants, and additions to the plants will be necessary amounting in cost to about 3% (about $22,000,000) of the presently esti- mated investment in the Government- owned synthetic rubber plants of $725,- 000,000. The rated capacity of the Gov- ernment GR-S plants is 705,000 long tons per year, and the plants have demon- strated actual capacity of 860,000 long tons per year. The requirement for 1946 of 1,054,000 long tons is 22.5% over the present demonstrated capacity and 49.5% over the rated capacity of the plants. It is indeed fortunate that the syn- thetic rubber plants have demonstrated a flexibility in production and an ability to produce substantially over their rated capacity, so that with comparatively small additions an output up to nearly 50% over their rated capacity can be counted on for 1946 if needed. If these production factors were not pres- ent, it would have been futile to pro- gram the tire and tube expansion. Ex- hibit "G" shows the supply and require- ments for crude and synthetic rubbers in 1943 and 1944, together with esti- mates for 1945. Exhibit "D" shows the projected consumption of crude and syn- thetic rubbers in the 1945 production plan. VII. COMPONENT MATERIALS The most serious problems which the Industry will face in its efforts to achieve 1945 and 1946 production goals are in the fields of manpower and component ma- EXHIBIT "D" • 1945 · PRODUCTION · PLAN · SHOWING · PROJECTED CONSUMPTION OF CRUDE · AND · SYNTHETIC RUBBER UNITED STATES and canADA BY QUARTERS • GO 50 40 30 20 10 MILLION · TIRES SCHEDULED PRODUCTION 60 350 300 50 250 40 30 THOUSAND · LONG · TONS CANADA & EXPORT 200 FATSENGER CIVILIAN& 150 HNDIRECT 20 100 MILITARY 10 WAR ORDERS 50 CRUDE SYNTHETICS 350 300 250 200 150 100 50 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 AUBBER BUREAU · · WAR · PRODUCTION · BOARD 15 JANUARY 1945 1ST QUARTER * OTHER THAN SA TIRES 2ND QUARTER 3RD QUARTER 4™ QUARTER 1945 RUBBER · BUREAU · WAR PRODUCTION · BOARD 15 JANUARY · 1948 · · · · GPO-War Board 14588—p. 5 terials required for the production of rubber products. Rayon and Cotton Tire Cord: It is obvious that the high-tenacity rayon tire cord programs previously authorized did not contemplate production schedules such as those now projected for 1945 and 1946. The potential of rayon tire cord for 1945 is presently estimated at ap- proximately 245,000,000 pounds, and for 1946 at approximately 296,000,000 pounds. To increase these totals would involve the construction of entirely new plants which present estimates indicate would require a minimum of twelve months and a maximum of eighteen months. The requirements of the Rubber Bureau for high tenacity rayon tire cord are es- timated at approximately 292,000,000 pounds for 1945 and 368,000,000 pounds for 1946. The Rubber Bureau has, how- ever, tempered its true requirements by filing with the Textile Bureau minimum requirements. The difference between true and minimum requirements repre- sents the substitution of cotton for rayon tire cord with the expenditure of approx- imately 500 tons of crude rubber per month and some sacrifice in the quality of the tires produced. A rule of thumb measure indicates that approximately one pound of crude rubber is required to offset a pound of rayon tire cord short- age. Exhibit “E”" shows in graph form the requirements and supply of high- tenacity rayon tire cord. Cotton Tire Cord: There is a close re- lationship between the availability of rayon tire cord and the requirements for cotton tire cord. Exhibit "E" also shows EXHIBIT 'E' WAYON · AND · COTTON · TIRE · COMD QUIREMENTS · AND · SUPPLY · 1945-1946 180 NTGO QUARTERS MILLION · POUNDS KEY REQUIREMENTS · SUPPLY COTTON BAYON 1946 BUREAU WAN PRODUCTION BOARD 13 JANUARY requirements and supply of cotton tire cord. The anticipated shortage of rayon tire cord is translated into pounds of cotton tire cord in the approximate ratio of 1 to 1.3. Carbon Black: Future requirements for carbon black are greatly in excess of anything envisioned heretofore due, first, to the use of synthetic versus crude rub- ber, and second, to the greatly expanded size of the tire industry. Carbon blacks are divided into two general types- channel and furnace—and whereas they can be used somewhat interchangeably, present technological knowledge shows a depreciation in quality in some specific applications, if blacks of the furnace type have to be used to substitute for those of channel type. Exhibit "F" shows channel and furnace carbon black requirements and supply. Requirements do not include rebuilding of producers' and consumers' inventories for which provisions must be made. The Chemicals Bureau of the War Pro- duction Board is fully cognizant of this problem and we are assured that all steps are being taken to provide the rubber industry with an adequate sup- ply of carbon black and, to the degree possible, the particular types which the industry needs to produce the quantity and quality of products required. Beadwire: This important component is in short supply. Requirements have been filled with the Steel Division of the War Production Board. It is believed that with minor expansions in the in- dustry and a careful scheduling of pro- duction that shortages which would EXHIBIT 'F' CHANNEL · AND · FURNACE · CARBON BLACK REQUIREMENTS AND SUPPLY · 1945-1946 4 • ESTIMATED BY QUARTERS 1200 400 KEY 150 300 1100 200 50 100 MILLION POUNDS REQUIREMENTS · SUPPLY FURNACE CHANNEL 20 3 1945 30 1946 CONTUMLAR' NIGHAZNENTE DE SEST INCLUDE RESHILDING OF PRODUCEAS' RUBBER BURGAU WAR, PRODUCTION BOARD • 400 300 200 100 15 JANUARY 1945 handicap or curtail production can be averted. Miscellaneous: There are many other component materials required for the rubber industry. The Rubber Bureau has compiled requirements for approxi- mately 2,000 miscellaneous chemicals and textiles. Each one of these plays an im- portant part in the program. With the exception of two or three chemicals and certain types of textiles no real problems are anticipated. Requirements for tex- tiles essential to the production of foot- wear, conveyor belt and various types of hose do, however, present problems which can only be resolved by a determination of relative essentiality in the overall de- mand for textile products. VIII. MANPOWER During the first three quarters of 1944 manpower represented a serious, if not a most serious, problem in attaining full production from rubber industry facili- ties. In August, 1944 manpower require- ments for heavy duty tire production were placed on the National Urgency List, second only to certain secret projects. The Army and Navy worked in close co- operation with the Rubber Bureau and furloughed many men for assignment to produce these heavy duty tires. Army Team was formed to assist produc- tion. As a result of the cumulative ef- forts of the War Manpower Commission and other Government agencies involved, a large percentage of the men required for heavy duty tire production were placed in the industry. An During November of 1944 the drive to man fully the tire industry received new impetus. Heavy duty tires became only part of the problem and all truck tires were placed on the National Urgency List. As a result of a resurvey of the in- dustry, it was ascertained that on the new basis approximately 7,000 additional employees were required to achieve a fully manned condition. Succeeding weeks have shown increasing success in the joint efforts to supply additional workers to the industry. A substantial part of that work has already been ac- complished and approximately 4,000 ad- ditional employees have been added to the industry after giving full considera- tion to separations. There still remains a need for an additional 3,000 employees. The Army has furloughed approximately 1,500 men, most of whom have already started work. These men are included in the net gain as shown above. Should any of the furloughed soldiers be recalled to active duty, it is obvious that new men would have to be found to take their place. Meetings have been held with both labor and management to stress the urgency of the situation. All members of the tire industry have signed a pledge which amongst other things, assures con- tinuous seven-day operations and a co- operative settlement through collective bargaining of such differences as would have a deleterious effect on production. IX. MACHINERY AND EQUIPMENT The new expansion programs obviously entail the production and distribution of many banburys, mills, calenders and GPO-War Board 14588-p. 6 other machinery and equipment re- quired to produce the tires called for under current production schedules. Pool orders for certain parts of this equipment have been placed and subcon- tracting will be used extensively in order that the objective of delivery for all parts of the program before July 1, 1945 may be realized. Whereas the program has been accorded an AA-1 rating, it will also receive such directives as future produc- tion difficulties indicate are necessary. Both the construction of new buildings and the production of this new equip- ment will be expedited in every way. X. MISCELLANEOUS RUBBER PRODUCTS Many thousands of individual items are included under this general heading. Some of them are in as short supply as tires and tubes. They do not, however, make the headlines despite the essential character of their contribution to war production. Bogie Rollers and Tank Treads: There is an acute shortage of bogie rollers and tank treads at the present time. Pro- vision has been made for expansion of facilities which will not only serve to meet requirements but also pick up and eliminate accumulated deficits. The im- portance of these products cannot be overestimated. The demand is obvi- ously an integral part of the tank pro- gram. Requirements of replacement bogies and treads have shown a large increase as a result of the increased scale of operations in the various theatres of war. Mechanical Goods: With but few ex- ceptions, 35,000 and more items falling under the heading of mechanical goods are in reasonable supply, although in many instances the margin is very slight. Certain items, notably various types of hose, conveyor belt, etc., are in such short supply that special measures have been adopted to insure minimum require- ments for military purposes. Various types of hose, for instance, are sched- uled by the Mechanical Goods Branch. The difference between adequate and in- adequate supply is in most cases a man- power problem. The number of men re- quired, however, is of such minor conse- quence in the Nation's overall manpower shortage that these products have not been placed on the National Urgency List but rather have been handled in the in- dividual local areas. Shortages of tex- tiles are particularly apparent in the pro- duction of conveyor belt and will become more so as manpower is acquired and production reaches the levels necessary to satisfy the minimum requirements of our domestic economy and the export needs of our Allies. Footwear, Soles and Heels: These essential products have been in short supply for upwards of a year. Their production has been increased but is still inadequate to meet basic demand. It has only been through the elimination of all style items and miscellaneous types that the footwear requirements of the military and the rationing program have been met. Close cooperation has been maintained with the industry and Gov- ernment agencies to achieve this balance. The shortage of leather has had its repercussions in the demand for com- position soles and heels to such an ex- tent that an expansion program for the industry was sponsored in 1944 which, when completed, will involve the ex- penditure of approximately $10,000,000. Drug Sundries and Specialties: With but few exceptions, the thousands of rub- ber items included under this heading are in reasonable supply. Those ex- ceptions are, however, of great impor- tance to the health and welfare of the military as well as the civilian popula- tion. Various expansions have been made in this field which with adequate manpower will help answer the immedi- ate problem. Coated and Proofed Materials: The problems in this field were substantially answered during 1944. They were of a dual nature-production on the one hand, and conversion from crude to syn- thetic rubbers on the other. Amongst the many products covered by this head- ing are flotation equipment, life saving jackets, balloons, waterproofed materials, etc. Camelback and Repair Materials: Dur- ing 1944 the shortage of camelback for retreading of passenger and truck tirės was eliminated. There are now ade- quate supplies to meet the conservation program and to insure each truck and automobile operator of a satisfactory material to obtain the last mile from his present tires. With the exception of ex- tremely difficult problems in scheduling and supplying airbags for the military, requirements for the repair materials necessary both domestic use and export have been covered. Scrap and Reclaim Rubber: Supplies of crude rubber scrap are steadily dimin- ishing. The extensive scrapyards of Rubber Reserve Company will shortly have completed their distribution of the more desirable types of scrap rubber. There is, however, a substantial inven- tory position in the hands of the reclaim- ing industry which should insure full- scale operation for at least another year. Supplementing supplies on hand will be the crude rubber carcasses which will be turned into the scrap market as new tires become available and old ones pass from the picture. The reclaiming indus- try has made substantial forward strides in the reclaiming of synthetic rubber scrap and this will undoubtedly prove the insurance policy for continued re- claim operations. The demand for reclaim rubber has in- creased substantially as a result of the shortage of carbon blacks. Whereas ap- proximately 16,000 tons per month have been adequate to meet recent demand, the industry must now increase its pro- duction to approximately 25,000 tons per month or only 1,000 tons less than the maximum ever attained by the reclaim- ing industry. To achieve these produc- tion goals additional manpower must be made available. The War Manpower Commission has designated the reclaim- ing industry as a critical activity which will prove of material assistance in ob- (Exhibit G on reverse) taining the additional employees neces- sary for the new production schedules. XI. ORGANIZATION The Rubber Bureau was established on September 1 as the successor to the Office of Rubber Director. It assumed the duties of the Office of Rubber Director with the exception of responsibility for the operation and maintenance of the synthetic rubber plants and the research and development for the synthetic rub- ber program. During 1944 the number of employees showed a steady decrease. In Decem- ber there was a total of 146 employees of whom twenty were dollar-a-year men. This compares with a total of 505 em- ployees at the peak of the Office of Rub- ber Director operations and 237 on Sep- tember 1, 1944. The expansion and related programs have created a vastly increased volume of work. It has therefore been neces- sary during the past month to add to various understaffed parts of the organi- zation and probably further additions will have to be made in order that the work may be expeditiously and efficiently accomplished. Some of the additional personnel have been drawn from other parts of the War Production Board and some have been drawn from industry. To achieve our objectives, there has been a complete reorganization of the func- tions and responsibilities within the Bu- reau. This reorganization should prove of material assistance to the Rubber Bu- reau in achieving a relatively small but compact and hard-hitting organization. The Rubber Bureau has followed the precepts of the Office of Rubber Director in simplifying procedures to the greatest extent possible with minimum strain upon the industry and others concerned. When materials have come into reason- able supply, they have been taken from allocation leaving their use subject only to the regulatory provisions of the Rub- ber Order. As a result of this policy, Neoprene and Buna-N have recently been taken from allocation. GR-S,, of course, was taken off allocation many months ago. It is improbable that Butyl can be taken from allocation for some time and it is obvious that the alloca- tion of crude rubber will continue until after the war with restrictions being con- tinuously increased to keep pace with technological progress in the field of po- tential further conversions. XII. CONCLUSION The problems of 1944 were many in number and varied in character. The splendid cooperation between Industry, Labor and Government has provided the means to overcome most obstacles and to obtain satisfactory solutions for many difficult problems. It is with confidence that the Rubber Bureau faces the tasks scheduled for 1945. To Industry, to other Government agencies and to our associates in the War Production Board, the Rubber Bureau extends its apprecia- tion. The objectives have been defined. They must be met and without delay. J. F. CLARK, Director, Rubber Bureau. FEBRUARY 1, 1945. GPO-War Board 14588—p. 7 UNIVERSITY OF MICHIGAN EXHIBIT "G" SUPPLY OF RUBBER · VS · REQUIREMENTS UNITED STATES AND CANADA 1943-1945 BY QUARTERS * 400 THOUSAND LONG · TONS REQUIREMENTS 400 3 9015 03810 9065 vs. NEW SUPPLY 300 200 100 300 200 100 KEY I**Q. 2ª°Q. 3ª°Q. 4™Q. ISQ. 2ª°Q. 3ª°Q. 4™"Q. ISTQ. 2NDQ. 3ª°Q. 4™Q. 1943 1944 1945 O YEAR TOTALS '43 44 45 REQTS-TOTAL||||||19|138 174 197 212 211 234 240 282 294 317 542 854 1,133 SYNTHETICS 8 19 56 112 147 170 178 202|204 244 254 | 274 | 195|697 976 CRUDE 103 100 82 62 50 42 33 32 36 38 40 43 347 157 157 SUPPLY-TOTAL 30 43 80 137 186 238 228 255 268 283 289 303 290 9071,143 SYNTHETICS 10 29 71 124 167 209 200 222 232 254 264 270 234 798 1,020 CRUDE 20 14 9 13 19 29 28 33 36 29 25 33 56109 123 • STOCKS TOTAL 362 286 228 191 180 206 223 244 272 273 268 254 *ALL DATA SYNTHETICS 7 17 32 44 64 103 125 145 173 183 193 189 AS OF END CRUDE 355 269 196 147 116 103 98 99 99 90 75 65 OF QUARTERS Actual 400 300 RESULTANT STOCKS 400 · • • AT END OF EACH QUARTER 300 200 100 200 100 ISTQ. 2NDQ 3RDQ 4TH Q. ISTQ. 2NDQ. 3ROQ. 4TH Q. ISTQ. 2NDQ 3RDQ 4TH Q. 1943 1944 1945 • • RUBBER BUREAU · · WAR · PRODUCTION BOARD ·· 15 · JANUARY 1945 · GPO-War Board 14588-p. 8