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Acquisitions of this type are illustrated by those made from through 1948 by the American Home Products Co., a firm whic bought up a whole host of companies in different fields.

Some idea of the variety of fields entered into by the Am Home Products Co. can be gathered merely by a listing of so the widely known brands picked up in the course of the corpora acquisition drive, some of these firms having been acquired pr 1940. Thus, the American Home Products Co. has bought up owning such well-known brands as Bisodol, Kolynos, Anacín English Wax, Three-In-One Oil, Clapp's Baby Food, Duff's B Mix, George Washington Coffee, Chef Boy-ar-dee Spaghetti Di and others.

The companies shown in the top line of the chart represent zontal acquisitions in the same basic field of American Home E ucts, namely, drugs and pharmaceuticals. But in addition to bu up other drug and pharmaceutical companies, American Home F ucts has bought up a whole series of food specialty companies, panies making waxes and polishes; chemical companies, compa making dyes and paints; an insecticide company, a cosmetic comp and two other companies, making different products.

The Commission feels that the conglomerate type of acquisitio one which is pecularily dangerous to small business. A company is so diversified is in a position to strike out with great force aga any smaller company which may seek to compete with it in any of the variety of fields in which it is engaged and, of course, it is s to make up whatever losses that are incurred in the competitive with its profits secured in the other fields in which it is engaged.

For example, let us suppose that I take my total capital whic have stated to be $2, and try to go into the business of produci waxes and polishes, which is only one of the many fields in which t American Home Products Co. is engaged. Suppose I have a n process. I become rather successful. I begin to take business aw from this firm.

The firm then would be in a position-I do not say it would actual follow such a policy-but it would be in a position to undercut ǹ prices, sell at a loss until they have driven me out of business. Where I was engaged only in one field, they could make up whatever loss they incurred in the wax and polish field by the profits secured fro their operations in this variety of other fields. It is for this reaso that the Commission regards these conglomerate acquisitions as consti tuting one of the greatest and most serious dangers to small business.

I have, here, a great number of other charts. But I feel that I have taken up far too much of your time. I appreciate the courtesy that has been extended to me, and I will be glad to answer any questions that you may care to ask.

The CHAIRMAN. Dr. Blair, we would like to have those additional charts in the record.

Mr. BLAIR. Put the additional charts in the record? Yes, sir. (The charts referred to follow.)

GROWTH IN ECONOMIC CONCENTRATION PERCENTAGES OF TOTAL RESOURCES AND PROFITS HELD BY BIG BUSINESS

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