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STRATEGIC AND CRITICAL MATERIALS

[GUA YULE RUBBER]

WEDNESDAY, DECEMBER 10, 1941

UNITED STATES SENATE,
COMMITTEE ON MILITARY AFFAIRS,

Washington, D.C. The committee met at 2:30 p. m., pursuant to call, in the committee room, the Capitol, Senator Austin and Senator Robert R. Reynolds (chairman) presiding, to consider the rubber situation.

(The bill S. 2152, subsequently introduced by Mr. Downey on December 22, 1941, follows:)

[$. 2152, 77th Cong., 1st sess.)

A BILL To provide for the planting of forty-five thousand acres of guayule in order to

make available a domestic source of crude rubber for emergency and defense uses

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Secretary of Agriculture (hereinafter called the "Secretary”) is authorized

(1) To acquire by purchase, license, or other agreement the right to operate under patents, now held by the Intercontinental Rubber Company or any of its subsidiaries, relating to the planting of guayule or the extraction of rubber therefrom, and to acquire such properties, processes, records, and data as are necessary to such operation;

(2) To plant, or contract for the planting of, not in excess of forty-five thousand acres of guayule in areas in the United States where the best growth and yields may be expected in order to maintain a nucleus planting of guayule to serve as a domestic source of crude rubber as well as of planting material for use in further expanding guayule planting to meet emergency needs of the United States for crude rubber; to establish and maintain nurseries to provide seedlings for field plants; and to purchase necessary equipment and facilities;

(3) To acquire by purchase, lease, or other agreement rights to land for the purpose of making plantings of guayule; to make surveys, directly or through appropriate Government agencies, of areas in the United States where guayule might be grown; and to establish and maintain records indicating areas to which guayule cultivation could be extended for emergency production;

(4) To construct, operate, or contract for the operation of, factories for the extraction of rubber from guayule; and to purchase, operate, and maintain equipment for the harvesting, storing, transporting, and complete processing of guayule ;

(5) To conduct studies, in which he may cooperate with any other public or private agency, designed to increase the yield of guayule by breeding or by selection, and to improve planting methods; to make surveys of areas suitable for cultivating guayule; to make experimental plantings; and to conduct agronomic tests;

(6) To conduct tests, in which he may cooperate with any other public or private agency, to determine the qualities of rubber manufactured from guayule, and to determine the most favorable methods of compounding and using guayule in rubber manufacturing processes ;

(7) To improve methods of processing gua yule and to obtain and hold patents on such new processes; and

(8) To sell guayule or rubber processed from guayule and to use funds so obtained in replanting and maintaining an area of forty-five thousand acres of gua yule inside the United States.

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SEC. 2. (a) The Secretary may appoint such employees as may be necessary for carrying out the provisions of this Act, subject to the civil-service laws, and the rates of compensation of such employees shall be fixed in accordance with the Classification Act of 1923, as amended.

(b) The Secretary shall determine the character and necessity for the expenditures under this Act and the manner in which they shall be incurred, allowed, and paid, without regard to the provisions of any other laws governing the expenditure of public funds, and such determinations shall be final and conclusive upon all other officers of the Government.

(c) The Secretary shall at all times maintain complete and accurate books of account and shall submit, as soon as practicable after January 1 of each year, an annual report to Congress of his activities under this Act. The General Accounting Office shall audit the financial transactions of the Secretary under this Act once each year for the sole purpose of making a report to Congress, together with such recommendations as the Comptroller General of the United States may deem advisable: Provided, however, That such report shall not be made until the Secretary shall have had reasonable opportunity to examine the report, to point out errors therein, explain any criticism contained therein, and to file a statement which shall be submitted by the Comptroller General with his report;

(d) All money made available to carry out this. Act may be deposited with the Treasurer of the United States, in any Federal Reserve bank, or in any bank approved by the Secretary of the Treasury and shall be subject to withdrawal at any time;

(e) The Secretary may delegate any of the powers and duties conferred on him by this Act to any agency or bureau of the Department of Agriculture;

(f) The Secretary, with the consent of any board, commission, independent establishment, corporation, or executive department of the Government, including any field service thereof, may avail himself of the use of information, services, facilities, officers, and employees thereof in carrying out the provisions of this Act;

ig) The Secretary may allot to bureaus and offices of the Department of Agriculture or transfer to such other agencies of the State and Federal Governments as may be requested by him to assist in carrying out this Act any funds made available to him under this Act.

SEC. 3. There are authorized to be appropriated such amounts as may be necessary to carry out the provisions of this Act. Any such amounts appropriated and any funds received by the Secretary under this Act shall remain permanently available for the purposes of this Act without regard to any other laws concerning availability and disposition of appropriated funds and the disposition of funds collected by officers or agencies of the United States.

Present: Senators Reynolds (chairman), Schwartz, Downey, Chandler, Kilgore, Austin, Bridges, Gurney, and Lodge.

Also present: Hon. Jesse H. Jones, Secretary of Commerce.

Senator AUSTIN. Senator Reynolds will be here presently, Senator Downey, so I would suggest that you go ahead.

Senator Dow NEY. Mr. Mason, will you come forward and testify?

Senator AUSTIN. Will you give your full name and address, please?

STATEMENT OF WILLIAM H. MASON, GENERAL TIRE & RUBBER

CO. AKRON, OHIO

Mr. Mason. Wililam H. Mason, General Tire & Rubber Co., Akron, Ohio.

Senator DOWNEY. Your company, of course, is interested in the rubber question in the United States, Mr. Mason?

Mr. MASON. That is right.

Senator DowNEY. Have you, either yourself, personally, or your company, any financial or direct interest in this guayule rubber in California ?

Mr. MASON. No, sir.

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