Statement of assets and liabilities from La Cronica de Texas, Inc. to all shareholders of La Cronica de Texas stock.

This is an enclosure to the letter sent by Marcus H. Halsey to Manuel Lozano showing the detailed account of the amounts receivable from La Cronica de Texas as of July 26, 1974 of $1646.87.

Abstract: Subsidence in the Baytown area is becoming critical because much of the area is subject to inundation by high tides. Withdrawals of water from industrial wells and declines in artesian pressures began about 1918. As much as 280 feet (85.3 meters) of artesian-head decline has occurred in the Evangeline aquifer, and as much as 320 feet (97.5 meters) of decline has occurred in the Alta Lorna Sand. Subsidence of the land surface began about 1920, and as much as 8.2 feet (2.5 meters) of subsidence had occurred by 1973. Future subsidence was calculated for two loading situations. Case I provided that the artesian heads in the Alta Lorna Sand and Evangeline aquifer would continue to decline at a rate of 6 feet (1.8 meters) per year until 1980. Case II provided that artesian head in the Alta Lorna Sand and Evangeline aquifer would continue to decline at a rate of about 6 feet (1.8 meters) per year until about 1995. The ultimate subsidence expected for the assumed conditions of case I and case II is 11.4 feet (3.47 meters) and 15.1 feet (4.60 meters), respectively.

Report from Dun & Bradstreet, Inc. showing their working capital and other financial information. Also shown are the financial statements for the past three years. The company issued an additional 300,000 shares of common stock. Supplemental data to the financial statements is also included.