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 \
 
Los Angeles, Calif —(?)—Edward L
Doheny and directors of the Pat-
American Petroleum and Transport
company, today faced a bill of com-
plaint demanding an accounting of
$10,000,000 stockholders allege they
Jost in the fraudulent Jease of the
Elk Hills naval oil reserve.

The complaint, filed in behalf of
Prank H. Kunkel, Cincinnati, and
other shareholders, declared the loss
resulted from the cancellation of the
lease by a decision of the United
States supreme court alter the com-
pany had spent several million dol-
jars in the development of the field.

BARGAIN WITH FALL.

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

‘The $100,000 delivered to Fall by
E. L, Doheny, Jr, tn the much dis-|
cussed “little black satchel” was de-_
clared in the suit io have heen given.
by the stockholders and used as a
bribe. An accounting of this exchange
also is asked

Kunkel sets forth in the complaint
that neither he nor any of the
plaintiff stockholders had any
Knowledge of the negotintions and
deseribes 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 3s charged
with dominating the affairs of the
company when the lease was signed.
 