Log Angeles, Cal, Aug. 28—(P}—
Edward L. Doheny and directors of
the Pan-American Petroleum and
Transport company, today faced ao
lnl of complaint demanding an ac-
counting of $10,000,000 stockholders

Ellege they have lost in the fraud-
uient lease of the Elk His nayal
cil reserve.

The complaint, {led in behalf of
frank Ho Kunkel, Cinelnnat!, and
inther shareholders, declared the loss
‘resulted from the caucellation of
| the lease by  deciston of the
Uniled States supreme court after
the company had spent several mil-
llon dollars in the development of
the field. *

The lease was negolleled for the
government by Albert I" Fall, then
aecreinty of the interior.

The $100,000 celivered to Fall by
EH L, Doheny, jr. in the much dls-
cussed “Wittle black satchel” was de-
elared in the suit to have been
inven by the stockholders and used
as & bribe. An necounting of this
exchange also is asked.

Kunkel sets forth in the com-
qualnt thal nelther he nor any of
tha plaintiff stockholders had any
anowledge of the negotinuions and
describes Doheny’s conduct of the
aenl as a “fraud not only against
the Uniled States but also against
{the Pan American company and its
ttockhalders,” Doheny is charged
with dominating the affalrs of the
company when the iease was signed.
 
 

+ Los Angeles, Aug. .28-—(A.P.)—
Edward -L.; Doheny and directars of
the Pan-American: Petraleum and
Transport company, today faced &
DI of complaint:demanding an &
count-of * $10,000,000 steckholders
allege-they lost In the fraudulent
lease of the “Elk ‘Hilla naval oll re-
serve.” ee

Tha complaint, filed in behalé of
Frank H. Kunkel, Cincinnati, .and
other ‘sharoholders, declares’ the loxs
resulted from tha cancellation af the
leane by A‘décldibh’ “at the” United
States’ Shbréme court after the com-
pany BpOht ‘several millian dol-
lars inthe davelapment of the field.

The lease was negotiated for the
government by Albert B, Fall, then
secretary of the inierlar. .... ‘

The $100,000 dollvored to Fall-by
E. L. Doheny, Jr., in the much dls-
cuased “litle black axtchel” was de
clared In.the sult {a have been given
by the stockholders and used as ‘8
bribe’. .An accounting of bis x:

 

 

 
 ehangé also ia asked. |

Kunkel sete forth in the complaint
that neither he nor any. of. the plain-
tit! stockholders had ady Enowledge
of the. negotiatfane and ‘describes
Doheny'a conduct of the deal az 8
“traud not only, againat..the United
States but also against the Pan-Am-
eri company and ita .atockhold-
ers": Dobeny fe charged with dom-
inating the affaira. of, the company
when the lease was signed, »

‘The complaint ‘further deciares
that aince then ‘Doheny bas dlsposed
of bls’ cohtralling | interest inthe
eompanyto the Pan-American East-
ern Petroleum company which Is a)-
leged to be cantralled by the Btand-
ard Ol company af Indiana.

The sult demands that Doheny
personally be campelied,” to relm-
burs {he ‘atockhalders for the alles:
ed losses,” BSA .

Dohany retused to comment on the
complaint, declaring he wauld. sub-
mit it to Als attorneys before making
eee aaa meen gmk

    

 
 