Paragould soliphone. (Paragould, Ark.) 1918-1950, 1921-12-14
(From Tuesdays Press)

)
Harold Pierce, secretary-treasurel
OF the Par-a-Tex Oil Company, re
turned last night from Wichits
Falls, Texas, where he is reported
to have effected q compromise set
tlement with G. II. Kadane and w
B. Munson, purchasers of the Par.
Il a-Tex, whereby an adjustment haf
been made involving a final dispo-
sition Of the s90,OO0.O0 worth ol
stock issue in the Western Drilling
& Producing Company and held by
the Par-a-Tex Oil Company as q
part OF the sale consideration when
the property passed into the hands
OF kadane and Munson in Juno OF
last year. Mr.. Pierce has made
public the announcement that he
settled with the purchasers upon the
basis of a cash consideration OF
33 1-3 per cent OF the 100000. 90
stock issue, that adjustment being
S1-3 per cent greater than was pro-
posed by the Texas purchasers
through their attorney in Paragould
few weeks ago. The Par-a-Tex
Company, it is pointed out, has re-
ceived $30,00O.0O for Immediate dis
tribution among the company
stockholders in addition to other
cash assets already on hand, en-
abling the immediate payment OF
a 80 per cent dividend upon the
company's capitalization of $110.-
10000.
Officers of the Par-a-Tex Com
pany, it is announced, are now
busily engaged preparing a check
issue embracing the so per cent
dividend and the same will be plac-
ed in the mails as soon as it is pos
sible to complete the task of writing
the checks and attending to the
work Of mailing, according to in
formation given out. This dividend
OF 80 per cent, it is pointed out
by the officials of the company
makes a total of 40 per cent that
has been paid to the stockholders
OF the Par-a-Tex Oil Company, or
$40 for every dollar that was in
vested by the stockholders. They
say, also. that they hope to get
refund Of tax money paid to the
Federal government. having receiv-
ed ssme encouragement in the en-
tertainment of that hope. and that
amount combined with the thirty
or more Thousand dollars now in
the treasury of the company that
will be held till the tax issue Is
finally disposed of, would. In event
OF refund by % government, en-
able the companySto pay still anoth-
er dividend Of between 80 and 40
per cent, amounting to between $780,
10000 and $4O,00o.ee. The Off
GERS say, however. they do not want
the stockholders to feel certain as to
the latter amount being paid to
them, the entire matter being some
thing for the Federal government to
decide. The tax issue not likely
will be decided for some time yet
1t is stated.
In event the original tax limit
should be required by the govern
nent, the company in that event
likely will have small amount
left with which to further reim-
burse stockholders, it is stated. Just
how much it has not yet been es-
timated, as some expenses of han
ding the company's affairs are yet
to be paid, according to a statement
made by one Of the officials of the
organization.
A leading official of the Para
Tex Company this morning told q
representative of this paper that
he regarded the adjustment that has
lust been made very satisfactory
one in view of the many confusing
and disagreeable angles that have
developed since the company wal
organized and, particularly, since the
sale Of the property was consummat-
ed last year. That officer indicated
that the company labored under
serious handicaps in bringing the
affairs of the organization to Its
present adjustment and expressed
the belief that the total adjustment
Of more than s9O,O00.00 in cash
would have been achieved If diff.
ferent circumstances had prevailed
Directors Of the Par-a-Tex and
many other stockholders who have
been interested in achieving an ad'
justment of the, company's affairs
indicated that they were well pleas