Monday, Mar. 20, 1950

Fight for New England

In their swift snaking across the U.S., natural-gas pipelines have yet to tap New England. With estimated sales prospects of $125 million a year, two huge utility combines last week began a fight for that huge market.

In hearings before the Federal Power Commission, lawyers pressed the case of H. Gardiner Symonds, whose Tennessee Gas Transmission Co. is one of the biggest U.S. pipeline operators. Symonds wanted FPC permission to spend $118 million in an expansion that would extend his 1,600-mile Texas-to-Buffalo pipeline to the New

England border. His newly formed subsidiary, Northeastern Gas Transmission Co., would take it from there, spending another $22 million to weave a 529-mile system through New England.

Ranged against Symonds was a formidable antagonist. Eastern Gas & Fuel Associates, which controls about half the manufactured-gas supply in New England, also wanted to pipe in natural gas. With two other New England companies, Eastern had formed a new subsidiary, Algonquin Gas Transmission Co., and wanted approval for a $27.5 million pipeline. This would be connected with the pipelines of Symonds' biggest rival, Texas Eastern Transmission Corp., at the New Jersey station of its Big Inch and Little Big Inch pipelines.

Manufactured gas with the same heating power now costs New Englanders at least three times as much as the U.S. average for natural gas ($2.47 per 1,000 cu. ft. v. 73-c-), and they are convinced that high fuel costs are among the chief reasons why industries are leaving New England.

So far, most public support had gone to Tennessee Gas's Symonds, and with reason. At first, Eastern, a subsidiary of Pittsburgh's Koppers Co., Inc., had tried to block natural gas in New England. Only six months ago, after Symonds' plan had won a big following, did Eastern form Algonquin. Thus, many New Englanders are not sure that it would hustle as fast as Tennessee Gas to bring in cheaper fuel. New England, anxious for the cheaper fuel which natural gas would provide, was pressing FPC for an early decision. Last week, both Massachusetts' Governor Paul Dever and Connecticut's Governor Chester Bowles wired FPC urging immediate action.

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