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LOS ANGELES, AUE. 28,—Kdw ard
L. Doheny and directors of the Pan
American Petroleum and Transport
Company, today faced a bill of core-
plaint demanding an accounting of
$10,000,000 stockholders allege they
lost in the fraudulent lease of the
Elks Hills naval oil reserve.

The complaint, fied in behalf of
Frank H. Kinkel, Cincinnati, and
other stockholders, declares the
loss resulted from the cancollation
of the lease by a decision of the
United States supreme court after
the ‘company had spent several mil-
lion dollars in the development of
the field..

The $100,000 deliveted to Fall by
E. L. Dohney, jr., in the much dis-
cussed “Little black satchel” was
declared in the suit to have been
given by the stockholders and used
as:‘a bribe.

Kinkel ip the complaint describes
Dohney’s conduct of the deal as a
“fraud not only-against the United
States but also against the Pan
American company and its stock-
h@iders.”

The complaint further declares
that Dohney has disposed of his
controlling interest in the cowgpany
to the Pan American Eastern Pe-
troleum Company which is alleged
to be controlled now by the Stand-
ard Of] Company of Indian2.

_ The suit demands that ‘Dohney

personally be compelled to reim-
burse. the stockholders for the at-
leged losses.
_ Dohney refused to comment on
the complaint, declaring he woule
Submit it to his attorrfeys before
making. any announcement.
 
LOS ANGELES, Aug. 28.—()—
Edward L. Doheny and directors
of the Pan American Petroleum
and Transport Company, today
faced a bill of complaint demand-
ing an accounting of $10,000,000
stockholders allege they lost in
the fraudulent lease of the Elk
Hills Naval Oil reserve,

The complaint, filed in behalf of
Frank H. Kunkel, Cincinnati, and
other shareholders, declares the
loss resulted from the cancella-
tion of the lease by a decision of
the United States supreme court
after the company had spent sev-
eral million dollars in the devel-
opment of the field.

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

The $100,000 delivered to Fall
by E. L. Doheny, Jr.. in the much
discussed “‘little black satchel’ was
declared in the siut to have been
the rightful property of the stock-
holders and used as a bribe. An
accounting of this exchange also is
asked.
| Kunkel sets forth in the com-
plaint that neither he nor any of
the plaintiff stockholders had any
knowledge of the negotiations and
describes Doheny’s conduct of the
deal as a “fraud not only against
the United States but also against
the Pan American company and its
stockholders.” Doheny is charged
with dominating the affairs of the
company when the lease was sign-
ed.
 