InterNorth [ Edit ]
One of Enron's Northern Natural Gas predecessors was the Company, which was formed in 1,930th, in Omaha, Nebraska just a few months after Black Tuesday . The low cost of natural gas and cheap labor supply during the Great Depression helped to fuel the company's early beginnings. The Company doubled in Size by 1,932th and was Able to Bring the First Natural Gas to Minnesota . Over the next 50 years, Northern expanded even more as it acquired many energy companies and created new divisions within. It was reorganized in one thousand nine hundred seventy-nine Main as the subsidiary of a holding Company , InterNorth , which was a Diversified Energy Company and Energy-related Products. Although most of the acquisitions conducted were successful, some ended poorly. InterNorth competed with Cooper Industries over a Hostile takeover of Crouse-Hinds Company , Who Manufactured Electrical Products. InterNorth was ultimately unsuccessful as Cooper bought out Crouse-Hinds. Cooper and InterNorth feuded over numerous suits over the course of the takeover that were eventually settled after the transaction was completed. By the 1980s, InterNorth became a Major Force for Natural Gas Production, Transmission and Marketing as well as Gas Natural for liquids, and was an innovator in the Plastics Industry. [5].
Company Origins
Enron began as Northern Natural Gas Company, organized in Omaha, Nebraska, in 1930 by three other companies. North American Light & Power Company and United Light & Railways Company each held a 35 percent stake in the new enterprise, while Lone Star Gas Corporation owned the remaining 30 percent. The company's founding came just a few months after the stock market crash of 1929, an inauspicious time to launch a new venture. Several aspects of the Great Depression actually worked in Northern's favor, however. Consumers initially were not enthusiastic about natural gas as a heating fuel, but its low cost led to its acceptance during tough economic times. High unemployment brought the new company a ready supply of cheap labor to build its pipeline system. In addition, the 24-inch steel pipe, which could transport six times the amount of gas carried by 12-inch cast iron pipe, had just been developed. Northern grew rapidly in the 1930s, doubling its system capacity within two years of its incorporation and bringing the first natural gas supply to the state of Minnesota.