Arn v. Operators Royalty & Producing Co.

FRANKLIN E. KENNAMER, District Judge.

Ray M. Dunnett purchased two oil and gas royalty interests under lands in Gray county, Tex., for a total consideration of 822,000, which was paid by notes executed by Dunnett and Disney, Wheeler, Alcorn, and Cloud. This group organized the Operators Royalty Company and transferred the two royalty interests to it in consideration of all of its authorized capital stock of 200,000 shares. The stock was issued and divided among the promoters, who in turn transferred a block of it to Stephen B. Nelson as trustee. The promoters, with Nelson, constituted all of…