FOR IMMEDIATE RELEASE:  July 1, 1988


         FTC CHARGES ILLINOIS CEREAL MILLS' ACQUISITION
           OF ELDERS GRAIN INC.'S DRY CORN MILL ASSETS
                   VIOLATED THE ANTITRUST LAWS


     The Federal Trade Commission has issued an administrative
complaint charging that Illinois Cereal Mills Inc.'s acquisition
of Lincoln Grain Co. from Elders Grain Inc. could substantially
reduce competition in the production and sale of dry corn mill
products in the United States.

     On June 5, Illinois Cereal acquired Lincoln Grain.  The
Commission authorized its staff on June 6 to seek a preliminary
injunction against the acquisition.  U.S. District Court Judge
Nicholas Bua, in Chicago, issued a temporary restraining order on
June 10 requiring both Illinois Cereal and Lincoln Grain to
maintain the status quo of the Atchison corn mill, related
operations, and employees.  On June 24, Judge Bua granted the
FTC's request for preliminary injunctive relief, and ordered that
the acquisition be undone and that the contracts between Illinois
Cereal and Elders be rescinded.  That order has been stayed
pending appeal in the Seventh Circuit U.S. Court of Appeals.

     Lincoln Grain Co. consists of a dry corn mill and grain
elevator facilities in Atchison, Kansas, and comprises all of
Elders' dry corn mill assets.

     The complaint charged that the acquisition could hurt
competition in industrial dry corn milling and in the specific
products produced by dry corn mills for food use, such as flaking
grits, brewer's grits, corn meal, and corn flour.

     The Commission said that, if it eventually finds that the
acquisition violated the law, it could order Illinois Cereal to 
divest any Elders' dry corn milling assets it had acquired or
transfer those assets back to Elders.  

     NOTE:  The Commission issues an administrative complaint
when it has "reason to believe" that the law has been or is
being violated, and it appears to the Commission that a
proceeding is in the public interest.  The issuance of a
complaint is not a finding or ruling that the respondent has
actually violated the law.

     Copies of the complaint will be available soon from the
FTC's Public Reference Branch, Room 130, 6th St. and Pennsylvania
Ave. N.W., Washington, D.C. 20580; 202-326-2222; TTY 202-326-
2502.

                              # # #

MEDIA CONTACT:      Susan Ticknor, Office of Public Affairs,
                    202-3226-2181

STAFF CONTACT:      Ronald B. Rowe, Bureau of Competition,
                    202-326-2610

(Docket No. 9213)

(grain)