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 : :

 

 

     

 

 

     
 
| Los Angeles, Aug. 28.--(1—A
bill of complaint demanding an ac-
counting of $10,000,000 was filed in
the U. S. district court Monday
against Edward L. Doheny and
the Pan-American Petroleum and
Transport company.

The bill, which charges that
stockholders of the company lost
this sum through alleged fraud on
the part of Doheny in the famous
Elk Hills ofl scandal, was filed by
a Los Angeles law firm on behalf
of Frank H. Kunkel, attorney = of
Cincinnati, who brought the suit in
the interest of himself and other
stockholders.

The bill declares the $10,000,000
was lost by the stockholders solely
because Doheny acted fraudulently
in connection with the leasing from
‘former Secretary of the Interior Al-
Bert B. Fall of the Elk Hills naval
oil reserve, and through large sums
spent ip development of the fields
themselves, and elsewhere in con-
nection with the deal. It demands
that an accounting be made by Do
heny and that such money as was
expended in the alleged giving of a
$100,000 bribe to Fall, and in the de
velopment of the fraudulently leas
ed fields, be returned to the stock
holders,
 