with any person who submitted a proposal on any of the facilities. This is intended to permit the Commission to negotiate with a person who may not have submitted a proposal on the particular facility. However, such person must have submitted a proposal on one facility in order to be within the class eligible for negotiation.

It is anticipated that the Commission certainly will negotiate with all persons submitting a proposal on a particular facility, irrespective of whether the amount proposed by such person is the highest or lowest amount proposed.

The sale recommended may be at a price which is equal to, higher than, or lower than the highest amount proposed. This discretion in the Commission is essential because of the requirement that the disposal program establish a competitive pattern in this new industry. 13. Facilities to be placed in standby

At the end of the transfer period, the operating agency last designated by the President is to cease production in any of the unsold plants and place them in adequate standby condition. Naturally, the cessation of production must be consistent with sound operating procedures.

The unsold facilities may be transferred, without reimbursement or transfer of funds, to the General Services Administration for handling under the National Industrial Reserve Act of 1948, or to any other Federal agency designated by the President for administration as he shall direct.

No plant placed in standby shall be operated as a rubber-producing facility except under further act of Congress. No facility placed in standby, except the alcohol-butadiene plants, shall be leased for operation as a rubber-producing facility. The alcohol-butadiene facilities may be leased for purposes other than the manufacture of alcoholbutadiene. However, such leases may not be for less than 1 year nor for more than 3 years and must contain national security and recapture clauses. Prior to entering into any such lease, the opinion of the Attorney General must be obtained with respect to whether the proposed lease would tend to create or maintain a situation inconsistent with the antitrust laws. Advice must be requested 60 days prior to the effective date of the lease and the Attorney General must furnish his opinion within 45 days of the receipt of such request.

It is considered possible that the alcohol-butadiene facilities may not be sold. They are high-cost producers, not, as yet, competitive with the petroleum-butadiene process. They are, however, extremely important to national security because in them alcohol-butadiene can be produced which supplements the petroleum-butadiene. It is more Economical and, in the opinion of your committee, wiser to lease these facilities, if possible, than to maintain them in standby as long as adequate reconversion provisions are contained in any lease. Your committee would consider an adequate reconversion provision to be one which would require the plants to be capable of producing alcoholbutadiene within 90 days from date of notice.

14. Submission of disposal plan to Congress

Not later than 30 days after the termination of the negotiating period and in no event later than June 1, 1954, the Commission must submit its recommended disposal plan to the Congress, if it has achieved such a plan.

The target date of June 1, 1954, should give the Commission sufficient time to carry out its obligations and report the fruits of its efforts to the Congress. However, should the Commission find it not feasible to meet this date, it can so report to the Congress and the Congress may extend the date by legislation.

A day certain is desirable because it provides prospective purchasers with a reasonable assurance as to the approximate time they may expect possession, providing the disposal-plan is not disapproved by the Congress. In the event the Congress does not disapprove the disposal plan, transfer of possession must be within 60 days following the expiration of the period for congressional review. This period within which transfers must be made would end on September 1, 1954 On June 1, 1954, it is likely that the Congress will be in session and will continue in session for a sufficient period of time to enable it to review the recommendations of the the Commission. Moreover, it i felt to be important that the same Congress, namely, the 83d Congress that enacts the enabling legislation should have an opportunity to review the recommended disposal.

In its report the Commission must include the steps taken to elici proposals and the proposals which have been received; the principa terms of all sales contracted for and its recommendations; why the highest amount proposed was not accepted if such be the case; to th extent requested by the Attorney General his advice concerning th disposals proposed; the standby program for unsold plants; the Gov ernment's inventory stocks of synthetic rubber and its componen materials; its recommendation relative to continuance of the Govern ment research program for 1 year following the fiscal year in whic the transfer period ends; and the names of individuals representin the Government or the purchasers in the negotiations and consum mation of the contracts of sale.

It was considered that there may be certain phases of research i rubber which should be continued by the Government, especially i those matters peculiar to military problems. For such reasons th bill specifically excludes from sale or lease the Government-owne evaluation laboratory at Akron, Ohio. Funds for this program wi come out of the proceeds of disposal.

In order that the Attorney General may have an opportunity present his official views on the disposal plan, he is given the right t include them in the Commission's report to the Congress. This to further assure the Congress that the disposal plan is such as wi best foster the development of a free, competitive synthetic rubb industry.

It is conceivable that because of antitrust aspects some of the sal recommended may be for less than the highest amount proposed. I such event, it is desirable that a statement in explanation be made. 15. Period for congressional review

This provision providing for congressional review of the recon mended disposal plan is one of the most important features containe in the bill. It provides an opportunity for the Congress to have last look at the disposal program before that program becomes effe tive. Congress has an opportunity to determine for itself whether th national security is adequately provided for, whether full fair val has been received for the facilities, and whether a competitive patter has been fashioned for the new synthetic rubber industry.

You

committee believes that the responsibility for final review rightfully belongs with the Congress.

The report of the Commission must be submitted to both Houses of the Congress on the same day. At the expiration of 30 days of continuous session of the Congress following the date upon which the report is submitted, the Commission shall proceed with the disposal as outlined in the report, unless the report is disapproved by either House of the Congress by resolution within that period.

The same Congress that passed the enabling legislation will have an opportunity to review the disposal program recommended. If either House of the Congress concludes that the recommended disposal program does not carry out all of the criteria in the bill, its members may by majority vote disapprove the report.

A great responsibility is placed both upon the Commission and apon industry because the report of the Commission must be such as is contemplated not to be disapproved by either House of the Congress. If either House of the Congress is dissatisfied with a single recommended sale, the entire disposal program could be negated. 16. Employment of personnel by Commission

The Commission is authorized to employ professional, clerical, and stenographic assistance without regard to the civil-service laws or the Classification Act of 1949. However, it must observe the pay rates prescribed in the Classification Act of 1949. Moreover, on request, the Commission may borrow employees from other Federal agencies concerned with the rubber-producing facilities, with the consent of the agency head.

Your committee is of the opinion that the Commission must have the authority to employ without regard to the civil-service laws or the Classification Act. The Commission is one temporary in nature. It must assemble a qualified working staff with dispatch because time is of the essence in the disposal program. With the passage of time, the value of these facilities is reduced. Therefore, it is to the interest of the taxpayers that the Commission be able to employ people of its selection for this temporary work in order to enable it to carry out the objectives of this act at the earliest possible time.

17. Termination of Rubber Act of 1948

In the event the Commission is unable to submit and recommend a disposal program to the Congress, or if the recommended program is disapproved by resolution of either House of the Congress, the Rubber Act of 1948, as amended, is extended from March 31, 1954, to March 31, 1956. Upon the passage of this bill the Rubber Act of 1948, as amended, is extended until September 1, 1954. If the report of the Commission is not disapproved by either House of the Congress, the Rubber Act of 1948, as amended, terminates not later than 60 days after the expiration of the period for congressional review.

CONSIDERATION OF PLANT EMPLOYEES

Your committee has kept in mind the effect the transfer of the synthetic rubber plants from Government to private ownership may have upon the employees who work at such plants. It is fortunate that because of the current working arrangements, no specific provisions are required in the bill to cover this matter. None was

S. Repts., 83-1, vol. 3-17

requested by the representative of one of the largest national labor organizations who testified on similar proposed legislation before the appropriate subcommittee of the House Committee on Armed Services.

The plants are now operated for Government account by private organizations. Your committee understands that all operating per sonnel are employed by such private organizations. For the most part employees on the Government payroll in connection with the synthetic-rubber program exercise supervisory and planning functions Therefore, the vast majority of workers engaged in this industry are not on the Government payroll.

Testifying in behalf of 200,000 members of the United Rubber Workers of America, CIO, the representative of that organization stated that the basic problem from their standpoint was to arrang for adequate supplies of rubber, both synthetic and natural, to giv the rubber workers an opportunity to work. Favoring an increas in synthetic rubber output, this representative stated that transferring the plants to private ownership may be a method of increasing such production faster than maintaining ownership in the Government Under the circumstances, he favored having as many of the presen plants as possible transferred to private industry as quickly as possibl for operation at a high rate of production. Your committee hope that the transfer of these plants may be accomplished with as littl dislocation of plant employees as possible consistent with complianc with the conditions of transfer.

CONCLUSION

Your committee shares the views of the President that now is th most opportune time to dispose of the Government-owned rubber producing facilities. Their efficiency and production are high Profits are becoming attractive. A delay in disposing of these facili ties might result in substantial loss to the Government because o possible new technological developments or for other reasons.

Your committee is certain that adequate safeguards are include in the bill-safeguards that will enable attainment of the three ob jectives emphasized by the President, and also of all other criteri. established in the bill.

An additional safeguard is contained in the provision requirin congressional review of any disposal plan recommended by the disposa Commission. At the time of such review, each Member of the Con gress individually has the opportunity to decide whether the disposa plan fulfills the enumerated requirements. If any doubt exists, th disposal plan can be disapproved by a majority vote of either House o the Congress.

For these reasons, your committee urges early consideration an recommends passage of the bill.

SECTIONAL ANALYSIS OF S. 2047 AS REPORTED BY SENATE COMMITTE ON BANKING AND CURRENCY

Title

Rubber Producing Facilities Disposal Act of 1953. Section 2

Disposal of Government rubber plants is consistent with nations. security and will carry out policy of Rubber Act of 1948 to develo a free, competitive synthetic rubber industry.

Section 3 (a)

Creates Rubber Producing Facilities Disposal Commission-3 persons appointed by President from civilian life. Compensation, $50 per diem while at work plus transportation and $9 per diem while away from home on business. Employee of rubber or petroleum industry or synthetic rubber feedstock portion of chemical industry any time since January 1, 1950, or one who gets substantial part of his income from any such industry, is ineligible as Commissioner.

Section 3 (b)

Commission to (1) invite proposals for purchase of plants; negotiate for sale; recommend thereon to Congress; make sale contracts; and execute deeds; (2) lease alcohol-butadiene plants; and (3) take other action necessary to carry out purposes of act.

Section 3 (c)

After appointment and in executing duties, Commission to consult. Attorney General to (1) get guidance regarding type of disposal program best fostering development of free competitive synthetic rubber industry, and (2) supply Attorney General information he needs for giving advice.

Section 4

Commission to be furnished on request information about plants in possession of any agency concerned with plants.

Section 5

Commission to proceed promptly with disposal, conducting necessary hearings.

Section 6 (a)

Commission may employ persons without regard to civil-service lays and Classification Act of 1949 (but must observe pay rates of Classification Act). On request Commission may borrow employees from other Federal agencies concerned with plants, with consent of the agency head.

Section 6 (b)

Bars employment by plant purchaser or its affiliate of any Commission member or employee in discretionary position handling negotiation or sale of plants, during period of employment or for 2 years thereafter. Employer and employee violating provision is subject to $10,000 fine or 1 year imprisonment, or both.

Section 7 (a)

Commission upon adequate advertisement to invite proposals for purchase of plants. Proposals to be received from 45 to 90 days (as announced by Commission) after the first day on which proposals are invited in advertisement. Commission to determine content of advertisement. Data reasonably required to submit proposal shall he furnished by Commission on request by prospective purchaser unless Commission believes he has not identified his principal, is not financially responsible, or is poor security risk.