Los Angeles, Aug. 28 (AP) —

A suit against E. L. Doheny and
the directors of the Pan-American
Petroleum Transport company by
etockholders of the latter corpor-
ation who allege that the share-
holders were the real losers in
the Elk Hills naval oil reserve
leasing scandal, was on file here
today.

The complaint, filed yesterday
in behalf of Frank H. Kunkel of
Cincinnati, and other sharehold-
ers, declares that the stockhold-
ers lost $10,000,000 as the result
of the cancellation of the fraud-
ulent lease. It asks that Doheny
and the board of directors be com-
pelled to render an accounting.

The $100,000 which was de-
livered to Albert B_ Fall, former
secretary of the interior, by E. L.
Doheny. jr., in the much discus-
sed “little black satchel,’’ was de-
clared in the suit to have been
the rightful property of the stock-
holders. An -aceounting of this
exchange, which the complaint
branded as a bribe, was demand-
ed,

The lease, which was negotiat-
ed in behalf of the government by
Fall, was cancelled by a decision
of the United States supreme
court after the Pan-American had
spent several million dollars to-
ward developing the Elk Hills,
Calif., oil reserve and on the
building of oil storage tanks at
Pearl Harbor, Hawaii.

Kunkel’s complaint sets forth
that neither he nor any of the
plaintiff stockholders had = any
hand in the leasing negotiations.
Some time ago, aceording to the
suit, demand was made upon the
board of directors of the company
for the accounting but nothing
was done about it.

The suit demands that Doheny
personally be compelled to reim-
burse the stockholders for the al-
leged losses.
 
LOS ANGELES, Aug. 27.—(4)—
A bill of complaint, demanding an
accounting of $10,000,000, Was filed
tn the U. S. district court today
against Edward L. Doheny and the
Pan-American Petroleum and
Transport company. The  obill,
which charges that stockholders of
the company jost their sum through
alleged fraud on the part of Doheny
wal the beget Elk dar pe acan-

was y wy a shi ,
aw ‘firm on Sar oven
Kunkel, attorney, of Cincinnati,
who brought the evit tn the tnter-
ests of himself and other stock-
holders.

The bili declares that the
$10,000,000 was lost by the stock-
holders solely because Doheny act-
ed fraudulently in connection with
the leasing from former Secretary
of the Interior Albert B. Fall of the
Elk Hills paval oli reserve, and
through large eums spent in de-
velopment of the fields themselves,
and elsewhere in connection with
the deal. It demands that an ac-
counting 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 develop-
ment of the fraudulently leased
fields, be returned to the stock-
holders.

The complaint declares _ that
neither Kunkel nor the other stock-
holders had any hand in the al-
leged fraud whereby the money
was lost.

   
 
 
 
   
 
 
  
 