NOTES: Charts indicate situation on a pro forma basta as of December 31, 1967.

Strick Corporation, and its affiliated companies, was sold to Prudential Insurance Co. of America and Lehman Brothers, December 1960. Oloody's)
Madison Square Carden Corp. now owns 100% of Madison Square Garden Center, Inc. and 80% of Two Pam Plasa. Oloody's)

Interest of Other Federal Agencies in Conglomerates

Congress and certain Federal agencies have had the issue

of conglomerate merger activity under scrutiny for some time. In the House, Representative Celler, Chairman, House Judiciary Committee has previously held hearings on conglomerates and plans more. Chairman Mills of the House Ways and Means Committee has indicated that his committee also will investigate the tax treatment accorded stockholders in conglomerate merger transactions and related tender

offers.

Representative Keith of the House Interstate and Foreign Commerce Committee has introduced H.R. Res. 315 which would direct various government regulatory agencies, including the ICC, to undertake a joint study of the effect of conglomerate activities on Federally-regulated industries. Representative Staggers has introduced H.R. 7373 and 7374 either of which would give the Commission power over conglomerate transactions.

Between 1950 and 1966, Justice and the Federal Trade Commission, primary enforcement agencies, challenged less than 2 percent of conglomerate mergers, and then only those involving product-extension or market-extension characteristics.1 Justice has singled out conglomerate mergers involving potential entrants (i.e., competitors) into a relevant market and those which create a danger of reciprocal buying as having sufficiently identifiable

1The March 1969 Federal suit against Ling-Temco-Vought by Justice represents the first instance wherein a "pure" conglomerate merger has been challenged by the Federal government.