By Associated Praga.
LOS ANGELES, Aug. 28.—Edward
j La. Dohney and directors of the Pan
i American Petroleum and Transport
feompany, today faced a bill of com-
laine demanding an accouating of
; $10,000,000 stockholders allege they
‘toast inthe friudulent lease of the Eik
(HIG naval oil reserve.
i fhe complaint, filed in behalf of
| Frank TM. Kunkel, Cincinnati, and
other sharehulders, declares the loss
fresulted from the cancelation of the
lease by ai decision of the United
nlates supreme court after the eam-
pany had gpent several million dollars
‘in the devciopment of the field.
| The lease was negotiated for the
i government by Albert B. Fail, then
i secretary of the interior. .
; The $100,000 delivered to. Fall: by
/ BE. T. Dohney, Jr. in the mueh dis-
cussed “little black satchel” was de-
pelared in the suit to have been the
righitul property of the stockholders
Pand used asa bribe. ;
Kunkel in the complaint describes
| Dohney'’s conduct ef the dealas a
“fraud not only against the United
States but alsa against the Pan
(American company and its stock-
| holders.” :
~The complaint further declares that
“Dohney has disposed of his controll-
‘ing interert in the. company. tothe
Pan Anierionn Eastern Petroleum
company which is alleged to be con.
trolled naw by the Standard Oil com-
sony af indiang, :
The suit demands that Dohney per-
sonally-bo gompelled to reimbuse the
-Btockholdergs for the. alleged losses,
~» Dohney refuied to comment on the
conplaint, declaring he would: submit
it te his attorneys before making any
ceine rae : :

 

 

     

 

 

     
 
By ihe Associated Press. :

Los Angeles, Cal. Aug. 27.—A bill
of complaint demanding an account-
ing of $10,000,000 was filed in the
United States district court today
against Edward L. Doheny and the
Pan-American Petroleum and Trans-
port company. The bill which charges
that stockholders of the company lost
this sum thru alleged fraud on the
part of Doheny in the famous Elk
Hills oil scandal, was filed by a Los
Angeles law firm on behalf of Frank
H. Kunkel, attorney, of Cincinnati,
who brought the suit in the interests
of himself and other stockholders.

The bill declares that the $10,000,000
was lost by the stockholders solely be-
cause Doheny acted fraudulently in
connection with the leasing from for-
mer Secretary cof the Interior Albert
B. Fall of the Elk Hills naval oil re-
serve, and thru large sums spent in
development of the fields themselves,
and elsewhere in connection with the
deal. It demands that an accounting
be made by Doheny and that such
money as was expended in the alleged
giving of a $100,000 bribe to Fall, and
in the development of the fraudulent-
ly leased fields, be returned to the
stockholders.

The complaint declares that neither
Kunkel nor the other stock holders
had any hand in the alleged fraud
whereby the money was lost. He al-
leges that demand was made some
time ago upon the board of directors
of the oil company for the starting of
legal action against Doheny to force
the accounting and recovery of this
money and that the board had done
nothing. He also demands that when
the accounting is rendered, the court
Issue a decree and judgment against
Doheny compelling him personally to
repay this money to the stockholders.

 
 