Los Angeles, Aug. 27 (A bill
ef complaint demanding an ac-
of $10,000,000 was filed in
the U. S&S. district court today
against Edward 1. Doheny and the
Pan-American Petroleum and Trans-
po company. The bill, which
charges that e«tockholders of the
company lost this sum through 4l-
feged fraud on the part of Doheny
$m the famous Elk Hills ol! scandal,
was filed by a Los Angeles law
rm on behalf of Frank H. Kan-
el, attorney, of Cincinnati, who
b t the euit in the interests
of himself and other stockholders.
The bill declares that the $10,000,-
000 was lost by the stockholders
golely because Doheny acted frand-
wlently in connection with the leas-
from former Secretary of the
Anterior Albert B, Fall of the Elk
Hills naval oj] reserve, and through
farge sums spent in development
of the fields themselves, and else-
where in connection with the deal
Jt demands that an accounting b¢
made by Doheny and that such
as was expended in the al-
leged giving of a $100,000 bribe t
Fall, and in the development of th
fraudulently leased fields, be re
furned to the stockholders.
_ The complaint declares that neith.
er Kunkel nor the other stock
holders had any hand in the al

ery
money and that the board had don
pothing. He also demands tha
hen the accounting is rendered
court issue a decree and judg
againet Doheny com, pell ing
im personally to repay this mone:
te © wt) wlders,
 
“Los Angeles, Aug. 28.—Edward L.
Doheny and directors of the Pan-
Americun Petroleum and Transport
company, today faced a bill of com-
plaint demanding an accounting of
$10,000,000 stockholders allege they
lost in the fraudulent lease of the
JElk Hills naval oil reserve.

- ‘Fhe complaint, filed in behalf of
[Frank H. Kinkel, Cincinnati, and
other shareholders, declares the loss
resulted from the cancellation of the
lease by a decision of the Wnited
States supreme court after the com-
pany had spent several million dol-
lars in the development 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. Deheny. Jr.; in the much dis-
cussed “little black satchel” was de-
clared in the suit to have been the
richtful property of the stockholders
and used as a bribe. |

Kinkel in the complaint 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 stockhold-
ers.”

The complaint further declares that
Doheny has disposed of his contro!l-
ing interest in the company to the
Pan American eastern petroleum com-
pany which is alleged to be controlled
now by the Standard Oil company of
Indiana.

The suit demands that Doheny per-
sonally be compelled to reimburse the
stockholders for the alleged losses.

Doheny refused to comment on the
complaint, declaring he would submit
it to his attorneys before making any
announcement.
 