State and local enforcement officials as well as representatives of the FBI and the Federal Drug Enforcement Administration testify on the structure and strength of traditional organized crime groups which have been active in the mid-Atlantic region in the past. The testimony focuses on internal conflicts within traditional crime families and the expansion of these crime families from New York into the Pennsylvania and New Jersey areas. Testimony further identifies those activities which provide the economic mainstay for traditional organized crime within the region, notably gambling, labor racketeering, loansharking, and narcotics. Other witnesses forecast new and dangerous trends for the future, such as organized crime's infiltration of the toxic waste disposal industry. Testimony highlights the emergence and power of other nontraditional organized crime groups, with special emphasis on the outlaw motorcycle gang known as the Pagans, which operates primarily in Pennsylvania and New Jersey. Testimony from law enforcement representatives and former Pagan members confirms that this group has assumed control of certain aspects of the illicit drug trade, amassing large profits through the trafficking of methamphetamines and other drugs. Testimony establishes that the Pagans are a highly organized criminal enterprise engaged in prostitution, arson, stolen property, and other major criminal offenses. Testimony indicates that the Pagans rival and may exceed in strength the traditional organized crime families within the mid-Atlantic area. Problems encountered in prosecuting the Pagans are identified. Prepared statements and exhibits are included.