 

+ 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

    

 
 
Los ‘Angeles, Aug. 27—A bill of
‘complaint demanding an accounting
of $10,000,000 was filed in U. S. Dis-
‘trict Court today against Edward
'L. Doheny and the Pan-.imerican
|Petroleum and Transport company. |
| The bill, which charges that stock- |
‘holders of the company lost this sum
through 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. Kun-.
‘kel, attorney. of Cincinnati, who
brought the suits in the interests of
‘himself and other stockholders.
Because of Fraud
The bill declares that the $10,000,-
000 was lost by the stockholders |
‘solely because Doheny acted fraud-
‘ulently in connection with the leas-
ing from former Secretary of the In-
terior Albert B. Fall of the Elk Hills
‘Naval Oil Reserve, through large)
‘sums spent in development of the
fields themselves, end elsewhere in
‘connection with the deal. It de-|
mands that an accounting be made
by Doheny and that such money as
was expended in the alleged giving
of a $100,900 bribe to Fall, and m
development of the fraudulently
leased fields, be returned to the
stockholders. |
The complaint declares that -eitner
Kunkel nor the octher stoclzholders.
had any hand in the alleged fraud
whereby the money was lost. It al-.
leges that demand was made upon)
the board of directors of the oil
company for the starting of legal ac- |
tion against Doheny to force the ac-
counting and recovery of this money
and that the board had done nothing. |
The bill cites that in court actions)
taken by the government ior the)
cancelling of the Elk Hills leases, a.
decision was rendered whereby the
oil company and the = stockholders:
lost more than $10,900,000 exnended
in construction of storage tanks at
Pearl Harbor. Hawaii, and in other)
developments of the fields. |
Doheny Pominated
Describing Doheny'’s conduct of the
lease matter as a “fraud not only .
against the United States but also
against the Pan-American and all
its stockholders”, the complaint de-_
clares that at the time of the Elk

 

fCantinunsed Om Pace Tew \
 