1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 | 1940 1941 1942 1943 1944 1945 1946 1947 1948

-100

3000

-2000

-1000

This second chart shows the number of mergers and acquisi manufacturing and mining between 1919 and 1948. The top the chart shows them on a yearly basis; the bottom part on lative basis.

It will be noted that immediately after World War I there o a pronounced rise in the merger movement. Then it subside what, but began to rise very spectacularly in the middle 1920 reached an all-time peak in 1929.

It then declined greatly during the depression, as one would There was very little incentive for a large company to buy up firms during the depressed conditions of 1930, 1931, 1932, and

Similarly there was very little merger activity during the years of the war, but as the postwar markets began to come in the merger movement again began to accelerate, approaching, t not quite reaching, the level that prevailed at the end of World

Since mergers have a cumulative effect on the level of eco concentration, it is important to note, as the bottom part of the shows, that between 1919 and 1947, inclusive, there were recorded 11,700 mergers and acquisitions in the field of manufacturing mining.

It is also interesting to note that these mergers that have place during the middle and latter 1940's have, by and large, cons of large companies buying up smaller firms.

The figures on that point are as follows: Nearly one-third o companies merged since 1940 have been absorbed by corpora with assets of $50,000,000. Another 40 percent of the total have taken over by corporations with assets ranging from $5,000,00 $49,000,000. Hence, more than 70 percent of the total numbe firms acquired during this period have been absorbed by larger porations with assets of over $5,000,000. The other half of this ture reveals that fully 71 percent of all the firms bought out si 1940 held assets of less than $1,000,000.

So much for the over-all character of the merger movement. 1 remainder of my testimony will be concerned with a discussion of 1 different types of mergers.

This third chart illustrates what is known as the horizontal type merger. The term "horizontal" relates to the aquisition by one cor pany of another firm in the same general line of business. This cha shows the horizontal and other acquisitions of the Borden Co. from 1940 to 1948.

These companies shown on the top line of the chart are in the sam general field of milk and dairy products. The Borden Co. has bought up all told approximately 20 companies between 1940 and 1948 in this same general field of milk and dairy products.

Mr. BRYSON. That includes cheese and ice cream?

Mr. BLAIR. That includes dairy products, milk, ice cream, and so forth; yes, sir.

In addition to those horizontal acquisitions, the Borden Co. has also made acquisitions of companies in other fields outside of the milk and dairy product field, of which, perhaps one of the most striking is the acquisition of a pet food company.

Mr. BRYSON. What was that last word

you used?