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SHALLOW WELLS OFFER FOR BANK RESUME OIL FLOW BONDS APPROVED Acceptance Urged for Bid Made to Milwaukee Stock Land Institution Market Closed Since Jan. 1 Reopened Prairie Takes Distress Output mendations that the offer of A. O. Oil began flowing again from Stewart, San Francisco, for bonds shallow wells in 17 southern Kansas of the bankers joint stock land counties today to a market the operbank of Milwaukee, be accepted ators have lacked since January 1. were made by the bondholders' pro- The Prairie Oil and Gas Company tective committee in letter to will transport 6,000 barrels of crude shareholders. The offer of B. C. daily through its pipe lines to an Ziegler and associates the commit- Illinois point, under an agreement tee said, was made to the receiver with the Standard Oil of Indiana after they had refused to bid and to take the distress oil for 90 days. after the Stewart offer was pub Resumption of pumping operations was the of hundreds The Stewart offer provides three of stripper wells, which salt water options: encroachment threatened to ruin Thirty-five per cent of the permanently operators said. bonds in W. S. Fitzpatrick chairman of cash (B) combination of 17 per the Prairie board of directors, said in cash and 28 per cent in 10 the Standard-Prairie agreement was 4½ per cent sinking fund effective for 90-day period. Under the present arangement, however, -Forty- five per cent in bonds only 300,000 barrels of oil will be The protective state- received from the stripper wells, he ment revealed that the Bank of said. Italy's Trans-America Corporation Operators were hopeful that ad"secures" the bonds. ditional relief would provided The committee recommended before the present arrangement exprompt acceptance of the proposal pires. embodied in the Stewart offer The Prairle precipitated the crisis The detailed statement of the for shallow well operators in Kancommittee's negotiations stated sas and Oklahoma when it with"overtures" were made to the drew as purchaser January ComZiegler farm mortgage firm of petition from larger companies West Bend, Wis., several times to forced the move, Fitzpatrick exobtain an offer. plained. Wells throughout both "These overtures were finally states were plugged. ended about December 15, 1930, by a statement of Mr. Ziegler's counsel that Mr. Ziegler had no bid to present to the committee," said the announcement. The Stewart plan was then published under date of January 31, 1931. Shortly thereafter came the announcement of Mr. Ziegler's bid to the bank's receiver. The Ziegler offer in which the Wood brothers, Electric power farm and financial firm of Lincoln Neb., and F. W. Murphy joined proposed to take over assets of the bank with the Ziegler firm operating the Wisconsin the bank's loans covered The Woods firm would handle the Minnesota farms with Mr. Murphy Wisconsin farms constitute about 31 per cent of the total.