`

`14 .Ciole ' R382
`
` PROCUREMENT OF RAW NATURAL RUBBER, ETC.
`
`iq
`HEARING||
`ma
`AL
`‘
`o
`f
`€O)-
`ff
`At
`Ite /
`
`~
`~~"
`COMMITTEE ON
`COINAGE, WEIGHTS, AND MEASURES
`HOUSE OF REPRESENTATIVES
`
`SEVENTY-SEVENTH CONGRESS
`
`SECOND SESSION
`
`PURSUANT TO
`
`H. J. Res. 295
`
`A JOINT RESOLUTION PROVIDING FOR THE
`
`PROCUREMENT OF RAW NATURAL
`
`RUBBER FROM SOURCES IN THE
`
`WESTERN HEMISPHERE
`
`——$$—$—$—$<<<—————
`
`MAY AND JUNE, 1942
`
`UNITED STATES
`GOVERNMENT PRINTING OFFICH
`WASHINGTON : 1942
`
`Yita v. MacNeil IP, IPR2020-01139, Page 2
`
`MacNeil Exhibit 2151
`
`MacNeil Exhibit 2151
`Yita v. MacNeil IP, IPR2020-01139, Page 2
`
`

`

`Yita v. MacNeil IP, IPR2020-01139, Page 3
`
`MacNeil Exhibit 2151
`
`MacNeil Exhibit 2151
`Yita v. MacNeil IP, IPR2020-01139, Page 3
`
`

`

`Yita v. MacNeil IP, IPR2020-01139, Page 4
`
`MacNeil Exhibit 2151
`
`MacNeil Exhibit 2151
`Yita v. MacNeil IP, IPR2020-01139, Page 4
`
`

`

`Yita v. MacNeil IP, IPR2020-01139, Page 5
`
`MacNeil Exhibit 2151
`
`MacNeil Exhibit 2151
`Yita v. MacNeil IP, IPR2020-01139, Page 5
`
`

`

`Oo
`
`14 .Clole' R82
`
`‘
`
`‘
`
`PROCUREMENT OF RAW NATURAL RUBBER,ETC.
`ZORD Ligs
`es
`Ne.
`| f
`ay
`HEARING :
`18
`\
`1942
`COMMITTEE ON “Oe oe
`COINAGE, WEIGHTS, AND MEASURES
`HOUSE OF REPRESENTATIVES
`
`-
`
`ae,
`
`BEFORE THE
`
`5
`
`Seb
`
`SEVENTY-SEVENTH CONGRESS
`
`SECOND SESSION
`
`PURSUANT TO
`
`H. J. Res. 295
`
`A JOINT RESOLUTION PROVIDING FOR THE
`
`PROCUREMENT OF RAW NATURAL
`
`RUBBER FROM SOURCES IN THE
`
`WESTERN HEMISPHERE
`
`—_——
`
`MAY AND JUNE, 1942
`
`UNITED STATES
`GOVERNMENT PRINTING OFFICH
`WASHINGTON : 1942
`
`Yita v. MacNeil IP, IPR2020-01139, Page 6
`
`MacNeil Exhibit 2151
`
`MacNeil Exhibit 2151
`Yita v. MacNeil IP, IPR2020-01139, Page 6
`
`

`

`COMMITTEE ON COINAGE, WEIGHTS, AND MEASURES
`
`SEVENTY-SEVENTH CONGRESS
`
`ANDREWL. SOMERS, New York, Chairman
`.
`JOHN J. COCHRAN,Missouri
`CHAUNCEY W. REED, Illinois
`WILLIAM H,. LARRABEE,Indiana
`AUGUST H. ANDRESEN, Minnesota
`COMPTON I. WHITE,Idaho
`E. HAROLD CLUETT, New York
`WILL ROGERS, Oklahoma
`LEONARD W. HALL, New York
`DAN R. McGEHEE, Mississippi
`HUGH D. SCOTT, JR., Pennsylvania
`JOHN F. HUNTER, Obio
`RICHARD P. GALE, Minnesota
`W. F. NORRELL, Arkansas
`WILLIAM H,. STEVENSON,Wisconsin
`ROBERT L, RAMSAY, West Virginia
`JOHN J. MCINTYRE, Wyoming
`FRANCIS R. SMITH, Pennsylvania
`EUGENE WORLEY,Texas
`JAMES DOMENGEAUX,Louisiana
`SAUL C, COHEN, Clerk
`
`HARRY SAUTHOFFP,Wisconsin
`
`Ir
`
`Yita v. MacNeil IP, IPR2020-01139, Page 7
`
`MacNeil Exhibit 2151
`
`MacNeil Exhibit 2151
`Yita v. MacNeil IP, IPR2020-01139, Page 7
`
`

`

`PROCUREMENT OF RAW NATURAL RUBBER, ETC.
`
`THURSDAY, MAY 7, 1942
`i
`1
`CoMMITTEE ON Cornacr, WEIGHTS, AND MEASURES,
`Hovuseor Representatives,
`Washington, D.C.
`The committee met at 10:30 a. m., Hon. Andrew L. Somers (chaii-
`man) presiding.
`The CxHamman. Gentlemen, while we have no quorum, without
`objection the committee can come to order for the purpose of hearing
`House Joint Resolution 295, a resolution by Mr. Faddis.
`If there is no objection, I will not read the resolution, because it is
`short and most members can read it for themselves, but this morning
`I would like the committee to have Mr. Faddis speak to us about
`this resolution.
`I also have invited a witness to give us a little
`background on the rubbersituation.
`We see from day to day in the newspapers the fact that there is a
`terrific shortage, and yet I do not think that the Members of the
`House of Representatives have sufficient facts at hand to consider
`legislation that might be necessary governing this rubber shortage,
`and therefore I felt that Mr. Faddis’ bill did give us a vehicle that
`would enable us to get into this rubber situation and possibly come
`to someintelligent determination.
`(The resolution referred to by the chairmanis as follows:)
`
`[H. J. Res. 295, 77th Cong., 2d sess. ]
`
`JOINT RESOLUTION Providing for the procurement of raw natural rubber from sources
`in the Western Hemisphere
`
`Whereas it is of the utmost importance that the United States supplement its
`supply of raw rubber in order to enable our workers to go to and from their
`daily work on our farms and in our mines and mills; and
`Whereas raw rubber would be of more practical value to the United States
`in time of this emergency than much of the gold we now hold; and
`Wherens there is raw rubber in South and Central America which can only
`be made available within a reasonable time by extraordinary effort; and
`Whereas there are in other parts of the world many persons who are ac-
`quainted with the acquisition and preparation of raw rubber who can be organ-
`ized and employed in exploiting the raw rubber in Central and South America:
`Therefore be it
`Resolved by the Senate and House of Representatives of the United States of
`America in Congress assembled, That there is hereby authorized to be appro-
`priated, out of any unexpended amounts of the stabilization fund established
`by section 10 of the Gold Reserve Act of January 30, 1934, or out of the gold
`reserve established by section 2 of the Gold Reserve Act of January 30, 1934,
`the sum of $250,000,°00 for the purpose of securing the services of, from what-
`ever part of the world they can be procured, persons having the experience,
`physique, knowledge, and ability to bring inte the possession of the United
`States as much of the natural rubber as is possible of the nations in Central
`and South America with whom the necessary arrangements can be concluded.
`t
`
`ad
`
`¥
`Aw
`
`Fin Hinot to
`
`BQ 7S Tl H
`
`6/99 31150-1839 +.«
`
`8
`
`Yita v. MacNeil IP, IPR2020-01139, Page 8
`
`MacNeil Exhibit 2151
`
`MacNeil Exhibit 2151
`Yita v. MacNeil IP, IPR2020-01139, Page 8
`
`

`

`2
`
`PROCUREMENT OF RAW NATURAL RUBBER
`
`Sro, 2. That for the purpose of carrying out the provisions of this joint reso-
`lution there shall be established under the War Production Board a bureau for
`the procurement of raw American rubber and that this Board be endowed with
`all the powers necessary to carry out
`the provisions of this joint resolution:
`Provided, That the chief of this bureau must be a man who has been a suc-
`cessful producer of raw rubber in the region of the East Indies, that the fleld
`forces of all grades must be men who have had experience in the production of
`raw rubber either in the East Indies or in Central or South America.
`Sec. 3. There are hereby authorized to be appropriated, out of any money in
`the Treasury not otherwise appropriated, such sums as may be necessary to
`provide for the transportation, maintenance, rotation, and storage within the
`United States or any of its Territories or possessions of any materials ac-
`quired under the provisions of this joint resolution.
`Sec. 4. The Department of State is hereby authorized and directed to carry on
`whatever negotiations are necessary with any foreign nation fo assist in or to
`further the purpose of this joint resolution.
`The CHarrman. If Mr. Faddis will take a seat here and review
`arguments in favor of his resolution, the committee will be very
`pleased to hear him.
`
`STATEMENT OF HON. CHARLES I. FADDIS, A REPRESENTATIVE
`FROM THE STATE OF PENNSYLVANIA
`
`Mr. Fappis. Mr. Chairman,I appreciate this opportunity of appear-
`ing before your committee in this connection, and especially at this
`time, when rubber is much in the public eye, and I am sure thatit is
`time some committee in this House was undertaking to do something
`substantial in regard to the matter of rubber.
`Permit meto go back a little and give you someof the early history
`of my interest in this matter.
`Mr. ANpRESEN. Would you permit a question ?
`Mr. Fappis. Yes.
`Mr, ANpresen. You mentioned about doing something substantial.
`Now, we have read in the papers statements from different divisions
`down here in the Government that they are contemplating spending
`$700,000,000 for the production of synthetic rubber, and efforts are
`being made to produce rubber from the guayule tree or shrub. Does
`the gentleman from Pennsylvania feel that this is just a minoreffort
`or is that something substantial ?
`Mr. Fappis, That what is a minoreffort?
`Mr. Anpresen. This $700,000,000 that Jesse Jones threatens to spend
`for synthetic rubber.
`Mr. Fappis. I feel this: That the move to produce synthetic rubber
`is a move that should, of course, be encouraged, but at the same time
`I am very much afraid that it is a move that will not result in pro-
`ducing a large enough amount of synthetic rubber to be of any
`sub-
`stantia] assistance to us in the emergency which we are now facing.
`I feel that if we are to reinforce what little rubber we have we are
`going to have to have more aggressive action than a mere attempt to
`produce synthetic rubber.
`To begin with, you must understand that synthetic rubber, so far
`as we are concerned in this country, is a matter with which we have
`had very little experience. A little has been made in an experimental
`way, but as far as having any machinery is concerned, even in the
`way of actual machinery or in the way of trained personnel, super-
`visory or otherwise, to produce synthetic rubber, it is something that,
`
`Yita v. MacNeil IP, IPR2020-01139, Page 9
`
`MacNeil Exhibit 2151
`
`MacNeil Exhibit 2151
`Yita v. MacNeil IP, IPR2020-01139, Page 9
`
`

`

`PROCUREMENT OF RAW NATURAL RUBBER
`
`3
`
`as far as I know, we do not have. After all, it will be necessary not
`only
`to erect plants, but it will be necessary to train personnel, and
`undoubtedly a great many disappointments will arise from time to
`time until the quality of this synthetic rubber is raised to the quality
`that we need.
`My understanding of synthetic rubber is that for most purposesit
`must be supplemented or must be mixed with natural rubber in some
`form or another before it will properly adhere to the fabric. I would
`not want for a minute to discourage that.
`Asfor the production of rubber from the guayule shrub, I have been
`interested in that for quite some time. From the best information at
`my command,I madea calculation about a year ago that if we were to
`produce the supply of rubber we have been accustomed to consuming in
`this country, we would haveto put an area into cultivation of the guay-
`ule shrub something about the size of the State of Indiana, if we were
`to produceit inside of a year; and,of course, it would be absolutely im-
`possible to secure enough seed to do that, because the securing of the
`seed would be a matter of quite a bit of time.
`Now,if the committee will permit me, I want to go back intothissit-
`uation and give youthelegislative background of it. I believe I am
`probably better acquainted with that than any other Memberin the
`Congress, because Tbelieve I was the pioneerin legislation of that kind.
`In about 1935 I introduced a bill to provide for the protection of do-
`mestic sources of tin. At that time we were shipping a great deal of
`our tin scrap to Japan, and the Japanese were anxiousto get it, partly
`for the purpose of destroying our domestic detinning industry and
`partly for the purpose of producing high-grade steel, which was made
`from tin, to combine with their low-grade iron ores from Manchukuo
`and make a good grade of iron plate. That led meto the introduction
`of a bill to acquire a stock pile of strategic materials.
`Strategic materials, as, of course, you know, are materials which are
`necessary to our industrial life in time of peace and our defense in time
`of war, which we either do not produce or produce in quantities insuffi-
`cient to meet our needs.
`Among them are rubber—of course, we produce almost no rubber
`except what little we have produced from the guayule shrub—tin,
`tungsten, manganese, silk, quinine, and many others—about23,in fact.
`Copper since that time has almost come into the position of being a
`strategic material. So you can see that what may not have been a stra-
`tegic material yesterday or last year may be a strategic material today.
`Foremost amongall of these is rubber. Our entire national economy
`is built on rubber. Our industrial system functions on rubber.
`Throughoutthe past 15 or 18 years the social life of our people has been
`so changed in a residential way that they must have the automobile.
`People employed in our industries have, because of the automobile,
`been able to tear themselves out of the large metropolitan centers, take
`up residence out in rural districts, where they have a little place, and
`use their own cars to go back and forth to work. Today, if we were
`forced to take these cars from people, so that they could not go back
`and forth to work, I fail to see how they could be transported.
`In
`. some instances, of course, the streetcar and the bus may pick them up
`but, at the same time, it would be a difficult matter to bring all of them
`in. Ourentire civilization is based on rubber.
`
`Yita v. MacNeil IP, IPR2020-01139, Page 10
`
`MacNeil Exhibit 2151
`
`MacNeil Exhibit 2151
`Yita v. MacNeil IP, IPR2020-01139, Page 10
`
`

`

`Yita v. MacNeil IP, IPR2020-01139, Page 11
`
`MacNeil Exhibit 2151
`
`MacNeil Exhibit 2151
`Yita v. MacNeil IP, IPR2020-01139, Page 11
`
`

`

`14 .Ctiole' KS 2
`
`PROCUREMENT OF RAW NATURAL RUBBER, ETC.
`RELig
`LeSRY iG
`x
`Ni
`.
`HEARINGy
`SB ~
`BEFORE THE
`1942 /
`.\a,,
`wes
`COMMITTEE ON “<>”
`COINAGE, WEIGHTS, AND MEASURES
`HOUSE OF REPRESENTATIVES
`
`SEVENTY-SEVENTH CONGRESS
`
`SECOND SESSION
`
`PURSUANT TO
`
`H. J. Res. 295
`
`A JOINT RESOLUTION PROVIDING FOR THE
`
`PROCUREMENT OF RAW NATURAL
`
`RUBBER FROM SOURCES IN THE
`
`WESTERN HEMISPHERE
`
`—
`
`MAY AND JUNE, 1942
`
`UNITED STATES
`GOVERNMENT PRINTING OFFICH
`WASHINGTON : 1942
`
`“ MacNeil Exhibit 2151
`Yita v. MacNeil IP, IPR2020-01139, Page 12
`
`MacNeil Exhibit 2151
`Yita v. MacNeil IP, IPR2020-01139, Page 12
`
`

`

`COMMITTEE ON COINAGE, WEIGHTS, AND MEASURES
`
`SEVENTY-SEVENTH CONGRESS
`
`ANDREWL. SOMERS, New York, Chairman
`*
`JOHN J. COCHRAN,Missouri
`CHAUNCEY W. REED,Illinois
`WILLIAM H, LARRABEE,Indiana
`AUGUST H. ANDRESEN,Minnesota
`COMPTON I. WHITE, Idaho
`E. HAROLD CLUETT, New York
`WILL ROGERS, Oklahoma
`LEONARD W. HALL, New York
`DAN R. McGEHEE, Mississippi
`HUGH D. SCOTT, IR., Pennsylvania
`RICHARD P. GALE, Minnesota
`JOHN F. HUNTER, Ohio
`W. F. NORRELL, Arkansas
`WILLIAM H, STEVENSON,Wisconsin
`ROBERT L. RAMSAY, West Virginia
`JOHN J. MCINTYRE, Wyoming
`FRANCIS R. SMITH, Pennsylvania
`EUGENE WORLEY,Texas
`JAMES DOMENGEAUSX,Louisiana
`SauC. COHEN, Clerk
`
`MARRY SAUTHOFF, Wisconsin
`
`pad
`
`Yita v. MacNeil IP, IPR2020-01139, Page 13
`
`MacNeil Exhibit 2151
`
`MacNeil Exhibit 2151
`Yita v. MacNeil IP, IPR2020-01139, Page 13
`
`

`

`PROCUREMENT OF RAW NATURAL RUBBER, ETC.
`
`THURSDAY, MAY 7, 1942
`t
`‘
`ComMMITTEE ON CornacE, WEIGHTS, AND MEASURES,
`HovseEor RepreseNTATIVES,
`Washington, D.C.
`The committee met at 10:30 a. m., Hon. Andrew L. Somers (chaiz-
`man) presiding.
`The CHarrman. Gentlemen, while we have no quorum, without
`objection the committee can cometo order for the purpose of hearing
`House Joint Resolution 295, a resolution by Mr. Faddis.
`If there is no objection, I will not read the resolution, because it is
`short and most members can read it for themselves, but this morning
`I would like the committee to have Mr. Faddis speak to us about
`this resolution.
`I also have invited a witness to give us a little
`background on the rubbersituation.
`Wesee from day to day in the newspapers the fact that there is a
`terriffic shortage, and yet I do not think that the Members of the
`House of Representatives have sufficient facts at hand to consider
`legislation that might be necessary governing this rubber shortage,
`and therefore I felt that Mr. Faddis’ bill did give us a vehicle that
`would enable us to get into this rubber situation and possibly come
`to some intelligent determination.
`(The resolution referred to by the chairmanis as follows:)
`
`[H. J. Res, 295, 77th Cong., 2d sess. ]
`
`JOINT RESOLUTION Providing for the procurement of raw natural rubber from sources
`in the Western Hemisphere
`
`Whereasit is of the utmost importance that the United States supplement its
`supply of raw rubber in order to enable our workers to go to and from their
`da.ly work on our farms and in our mines and mills; and
`Whereas raw rubber would be of more practical value to the United States
`in time of this emergency than much of the gold we now hold; and
`Whereas there is raw rubber in South and Central America which can only
`be made available within a reasonable time by extraordinary effort; and
`Whereas there are in other parts of the world many persons who are ac-
`quainted with the acquisition and preparation of raw rubber who can be organ-
`ized and employed in exploiting the raw rubber in Central and South America:
`Therefore be it
`Resolved by the Senate and House of Representatives of the United States of
`America in Congress assembled, That there is hereby authorized to be appro-
`priated, out of any unexpended amounts of the stabilization fund established
`by section 10 of the Gold Reserve Act of January 30, 1934, or out of the gold
`reserve established by section 2 of the Gold Reserve Act of January 30, 193-4,
`the sum of $250,000,°00 for the purpose of securing the services of, from what-
`ever part of the world they can be procured, persons having the experience,
`physique, knowledge, and ability to bring into the possession of the United
`States as much of the natural rubber as is possible of the nations in Central
`and South America with whom the necessary arrangements can be concluded.
`1
`
`EG 265
`OU
`
`bao ttt
`ALR
`6/99 31150-1689 ws.
`
`"1 Lui
`
`o
`MacNeil Exhibit 2151
`Yita v. MacNeil IP, IPR2020-01139, Page 14
`
`MacNeil Exhibit 2151
`Yita v. MacNeil IP, IPR2020-01139, Page 14
`
`

`

`2
`
`PROCUREMENT OF RAW NATURAL RUBBER
`
`Seo. 2, That for the purpose of carrying out the provisions of this joint reso-
`lution there shall be established under the War Production Board a bureau for
`the procurement of raw American rubber and that this Board be endowed with
`all the powers necessary to carry out
`the provisions of this joint resolution:
`Provided, That the chief of this bureau must be a man who has been a suc-
`cessful producer of raw rubber in the region of the East Indies, that the field
`forces of all grades must be men who have had experience in the production of
`raw rubber either in the East Indies or in Central or South America.
`Sec. 3. There are hereby authorized to be appropriated, out of any money in
`the Treasury not otherwise appropriated, such sums as may be necessary to
`provide for the transportation, maintenance, rotation, and storage within the
`United States or any of its Territories or possessions of any materials ac-
`quired under the provisions of this joint resolution.
`Sec. 4. The Department of State igs hereby authorized and directed to carry on
`whatever negotiations are necessary with any foreign nation to assist in or to
`further the purpose of this joint resolution.
`The CuHarrman. If Mr. Faddis will take a seat here and review
`arguments in favor of his resolution, the committee will be very
`pleased to hear him.
`
`STATEMENT OF HON. CHARLES I. FADDIS, A REPRESENTATIVE
`FROM THE STATE OF PENNSYLVANIA
`
`Mr. Fappis. Mr. Chairman,I appreciate this opportunity of appear-
`ing before your committee in this connection, and especially at this
`time, when rubber is much in the public eye, and I am surethatit is
`time some committee in this House was undertaking to do something
`substantial in regard to the matter of rubber.
`Permit me to go back a little and give you someof the early history
`of my interest in this matter.
`Mr. ANpresEeN. Would you permit a question?
`Mr. Fanois. Yes.
`Mr, ANpresen. You mentioned about doing somethingsubstantial.
`Now, we have read in the papers statements from different divisions
`down here in the Government that they are contemplating spending
`$700,000,000 for the production of synthetic rubber, and efforts are
`being made to produce rubber from the guayule tree or shrub. Does
`the gentleman from Pennsylvania feel that this is just a minor effort
`or is that something substantial ?
`Mr. Fappis. That what is a minor effort?
`Mr. Anpresen. This $700,000,000 that Jesse Jones threatens to spend
`for synthetic rubber.
`Mr. Fappis. I feel this: That the move to produce synthetic rubber
`is a move that should, of course, be encouraged, but at the same time
`I am very much afraid that it is a move that will not result in pro-
`ducing a large enough amountof synthetic rubber to be of any
`sub-
`stantial] assistance to us in the emergency which we are now facing.
`I feel that if we are to reinforce what little rubber we have we are
`going to have to have more aggressive action than a mere attempt to
`produce synthetic rubber.
`To begin with, you must understand that synthetic rubber, so far
`as we are concernedin this country, is a matter with which we have
`had very little experience. A little has been madein an experimental
`way, but as far as having any machinery is concerned, even in the
`way of actual machinery or in the way of trained personnel, super-
`visory or otherwise, to produce synthetic rubber, it is something that,
`
`i
`
`Yita v. MacNeil IP, IPR2020-01139, Page 15
`
`MacNeil Exhibit 2151
`
`MacNeil Exhibit 2151
`Yita v. MacNeil IP, IPR2020-01139, Page 15
`
`

`

`PROCUREMENT OF RAW NATURAL RUBBER
`
`3
`
`as far as I know, we do not have. After all, it will be necessary not
`only
`to erect plants, but it will be necessary to train personnel, and
`undoubtedly a great many disappointments will arise from time to
`time until the quality of this synthetic rubber is raised to the quality
`that we need.
`My understanding of synthetic rubber is that for most purposesit
`must be supplemented or must be mixed with natural rubber in some
`form or another before it will properly adhere to the fabric. I would
`not want for a minute to discourage that.
`Asfor the production of rubber from the guayule shrub, I have been
`interested in that for quite some time. From the best information at
`my command, I made a calculation about a year ago that if we were to
`produce the supply of rubber we have been accustomed to consuming in
`this country, we would haveto put an area into cultivation of the guay-
`ule shrub something about the size of the State of Indiana, if we were
`to produceit inside of a year; and, of course, it would be absolutely im-
`possible to secure enough seed to do that, because the securing of the
`seed would be a matter of quite a bit of time.
`Now,if the committee will permit me, I want to go back intothissit-
`uation and give you the legislative background of
`it. I believe I am
`probably better acquainted with that than any other Member in the
`Congress, because Tbelieve I was the pioneerin legislation of that kind.
`In about 1935 I introduced a bill to provide for the protection of do-
`mestic sources of tin. At that time we were shipping a great deal of
`our tin scrap to Japan, and the Japanese were anxiousto getit, partly
`for the purpose of destroying our domestic detinning industry and
`partly for the purpose of producing high-grade steel, which was made
`from tin, to combine with their low-grade iron ores from Manchukuo
`and make a good gradeof iron plate. That led me to the introduction
`of a bill to acquire a stock pile of strategic materials.
`Strategic materials, as, of course, you know,are materials which are
`necessary to our industrial life in time of peace and our defense in time
`of war, which we either do not produce or produce in quantities insuffi-
`cient to meet our needs.
`Among them are rubber—of course, we produce almost no rubber
`except what little we have produced from the guayule shrub—tin,
`tungsten, manganese, silk, quinine, and many others—about 23, in fact.
`Copper since that time has almost come into the position of being a
`strategic material. So you can see that what may not have been a stra-
`tegic material yesterday or last year may be a strategic material today.
`Foremost amongall of these is rubber. Our entire national economy
`is built on rubber. Our industrial system functions on rubber.
`Throughoutthe past 15 or 18 years the sociallife of our people has been
`so changed in a residential way that they must have the automobile.
`People employed in our industries have, because of the automobile,
`been able to tear themselves out of the large metropolitan centers, take
`up residence out in rural districts, where they have a little place, and
`use their own cars to go back and forth to work. Today, if we were
`forced to take these cars from people, so that they
`could not go back
`and forth to work, I fail to see how they could be transported.
`In
`. some instances, of course, the streetcar and the bus may pick them up
`but, at the same time, it would be a difficult matter to bring all of them
`in, Ourentire civilization is based on rubber.
`
`Yita v. MacNeil IP, IPR2020-01139, Page 16
`
`MacNeil Exhibit 2151
`
`MacNeil Exhibit 2151
`Yita v. MacNeil IP, IPR2020-01139, Page 16
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`4
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`PROCUREMENT OF RAW NATURAL RUBBER
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`In 1939 I succceded in having passed the so-called stock-pile bill.
`That provided for an acquisition ofthese various strategic materials in
`the way of a stock pile, which wasto be placed in control of theofficials
`of the Army and Navy andto be used for the national defense.
`Now.
`Tf see on page 16 of Collier’s Magazine for May 9, 1942,
`an article by George Creel. He makes a statement to this effect
`[reading]:
`in 1939, gave Henry Morgenthau some $70,000.C00 for the
`When Congress,
`purchase of “critical and strategic materials,” rubber received no mention,
`and the money was spent for quinine, tin, mica, chrome,
`tungs:en, etc. Why
`not? Even the Army and the Navy held firmly to the conviction that the
`Far East could always be depended upon for a cheap and inexhaustible
`rubber supply. The possibility that Malaya and the Netherlands Hast Indies
`could be occupied by an invading force was too farfetched for serious con-
`sideration.
`*.
`*
`*
`Rubber did not come into the picture until after May 28, 1940,
`Now, Mr. Creel wrote that article without as much information
`as a man should have in writing about a subject of that kind at
`a time like this.
`If Mr. Creel had been as well informed of pro-
`ceedings here in Washington as he should have been to write an
`article of that kind for a magazine at that time, he would have
`known better than to have made such a statement.
`The fact that rubber was a strategic material and that our sup-
`plies of rubber were all
`too inadequate is fact that has well been
`recognized by the Army and Navy Munitions Board for manyyears,
`and the Army and Navy Munitions Board has made strenuousef-
`forts to bring this matter to the attention of the authorities con-
`cerned in procuring these materials, but have been unsuccessful.
`When westarted out to enact the legislation which finally passed
`in 1939, became a law, and is now known as Public, 117, which was
`approved the 7th of June 1939, we were quite well aware of the
`fact that upward of a billion dollars should be appropriated for
`the acquisition of these strategic materials.
`.
`Of course, you all recognize the fact that before you can get a
`piece of legislation out of committee, or, at least before you can
`get
`it considered on the floor of
`the House,
`it
`is necessary to
`have the approval of the Bureau of the Budget.
`At that time the mind of the Congress for the most part and
`the mind of the Administration was geared more to matters per-
`taining to relief than it was to rearmament. We knewthat it was
`totally impossible to get a bill approved by the Bureau of the
`Budget that carried an appropriation that would at all be adequate
`for this purpose. We did, however, succeed in passing a bill call-
`ing for a hundred million dollars, and we finally received $70,000,000
`of that, over long intervals and by driblets.
`It was scarcely suffi-
`cient to scratch the surface.
`Where we received $70,000,000, we should have had not less than
`$700.000,000. We should have had—and it was well
`recognized
`by the War Department—at all
`times in our stock pile in this
`Nation 2,000,000 tons of rubber, which should have been rotated
`all the time in order to keep it from becoming useless on account
`of age, but
`the money was insufficient
`to secure any appreciable
`amount.
`
`Yita v. MacNeil IP, IPR2020-01139, Page 17
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`MacNeil Exhibit 2151
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`MacNeil Exhibit 2151
`Yita v. MacNeil IP, IPR2020-01139, Page 17
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`PROCUREMENT OF RAW NATURAL RUBBER
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`5
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`Mr, Anpresen. Cary you inform the committee as to about what
`time the War Department and the Navy Department became conscious
`of the fact that we should have a stock pile of this critical material ?
`Mr. Fappis. Well, to my own certain knowledge, the War Depart-
`ment and the Navy Department were both cognizant of our dangers
`in this respect and of our need for a stock pile of rubber, as well as
`the other strategic materials, back as far as 1935, and were making
`what efforts they could to interest the Congress in that. That is the
`way it came to my attenion, because members of he Army and Navy
`Munitions Board brought it to my attention, because of my interest
`in the original tin bill.
`Mr. ANprESEN. That is when youfirst took it up? That was in
`1935?
`Mr. Fappis. That is right.
`Mr. Anpresen. Now, do you know if the Secretaries of War or the
`members of the staff of the Army and Navy took this up with the
`President of the United States to interest him in it?
`Mr. Fappis. No; I do not.
`1 do not know whether they did or not,
`but I know that Idid. After I introducedlegislation I tried to bring
`the matter to the attention of the President.
`Mr. Anpresen. And you could not interest the President in it at:
`that time to any extent?
`Mr. Fappis. I was unable to doso.
`Mr. Anpresen. Did the Bureau of the Budget approve the $70,000,-
`000——
`;
`,
`Mr. Fapprs. I am not saying that I endeavored to do this in 1935,
`understand, but long before we were able to get any legislation on it,
`and at the time we were trying to do it, I endeavored to interest the
`President in the acquisition of larger supplies.
`Mr. Anpresen. Of course, the average individual would ordinarily
`assume that with the President being the Commanderin Chief of the
`Army and Navy, there would be a certain amount of coordination be-
`tween his departments carrying out the functions of the Army and
`Navy and his ownoffice.
`Mr. Fanppts. Well, of course, the President is a very busy man, and
`many things are brought to his attention. Perhaps Harry Hopkins
`Was more aggressive in pressing the President with his ideas than was
`the Army and Navy Munitions Board; and,after all, it must be said
`that Harry Hopkins was in a better position to do that, because the
`Army and Navy Munitions Board could not be in the same position
`then as he was.
`Mr. ANpRESEN. It may be in the sameposition now.
`Mr. Fapots. I feel he is in a much stronger position now than he was
`at that time and hasagreat deal more poweras the ear of the President
`to a greater extent than he had before.
`Mr. Anpresen. Of course, a great deal of responsibility is being
`placed by cer:ain people on Congress for its failure to provide these
`critical materials.
`I would like to have your observation on that,
`‘because I think it 1s important. Now, Congress is advised on the
`state of the Nation, on the conditions of the War and Navy Depart-
`men‘s, and what they need, by the President himself in his message to
`Congress; and you knowit is very difficult to get through any measure
`in Congress unless it has the approval of the administration.
`
`Yita v. MacNeil IP, IPR2020-01139, Page 18
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`MacNeil Exhibit 2151
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`MacNeil Exhibit 2151
`Yita v. MacNeil IP, IPR2020-01139, Page 18
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`PROCUREMENT OF RAW NATURAL RUBBER
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`Mr. Fanprs. That is all true, but when you say the Congress is ad-
`vised as to the condition of the Nation by the President, that is partly
`true, but only partly true, because the President’s advice and infor-
`mation to the Congress must of necessity be very general. The gentle-
`man recognizes that. But certainly the gentleman recognizes also
`that it is incumbent upon each and every Member of the Congress to
`be acquainted with the broad basics and fundamentals that have to do
`with.our entire conduct of our Government and the safety and security
`of the Nation.
`I say this to the gentleman, and I say this to the committee: That the
`Congress itself has. been as negligent, if not more negligent, than any
`other branch of the Government in this respect, and I want to show
`you that a little more as I go along. Congress failed to inform them-
`selves on this artd failed to listen to those who would tell you about
`that.
`I have been sneered at in the House when I said that 95 percent of
`the rubber came from the Dutch East Indies. You must remember
`that there were people in this country who, because of sectional inter-
`ests, did not wish anything to be done. There was the sugar-beet
`interest and the cotton-seed oil interest and other interests who were
`ready to abandon any policy that would abandon our strength in the
`East. Those men would sneer at you when youtried to tell them that
`95 percent of our rubber came from the Dutch East Indies. They
`tried to pull the curtain down when youtold them that 98 percent of
`our quinine and that most of our tungsten and