Business: Pipe Union

Greatest of natural gas pipe lines will be the $40,000,000, 1,250-mi. line started by Missouri-Kansas Pipe Line Co. last June (TIME, June 9). It starts at Amarillo, Tex., runs eastward to Indiana, branches southward to Kentucky. Last week a new and potent partner joined hands with M-K in this development. A half interest in all of the pipe line’s operating properties (with exception of its Kentucky and Indiana units) was sold to Columbia Oil & Gasoline Corp., Columbia Gas & Electric Corp.

While no price was revealed, M-K President Frank Preston Parish said it was at “a substantial profit.” Yet what was more important was that the sale assures “carrying out of all the engineering plans as originally laid.”

Although M-K had only 113 mi. of pipe when it was formed two years ago, it now has 800 mi. in addition to the lines being built, has 410,000 acres of gas land. Leading this aggressive development has been President Parish, 34, rich yacht-going Chicagoan. Young President Parish also formed Frank P. Parish Co. to distribute M-K stock. Recently this company canceled an underwriting agreement, returned about 1,000,000 shares to MK, which has also had 204,000 shares returned from investors who refused to accept delivery. Since the sale of this stock would have provided funds to be used in the $40,000,000 expansion, it seemed obvious that there was a connection between the cancellation and last week’s sale.

In Columbia Gas & Electric M-K has as an ally one of the biggest natural gas companies. Columbia’s properties are in New York, Pennsylvania, West Virginia, Ohio. Significant is the fact that M-K has retained its lines in Indiana and Kentucky, vital links should the Columbia-M-K western interests ever wish to connect directly with the Columbia properties in the east.