Lok ANKCICD, Aug. 28-—(A.P)-—A DI
of complaint demanding an accaunt-
Way of $19,000,000 was filed on the U.
B District court Monday against
Edward L. Doheney and the Pan-
Ameriran Petroleun and Transpurt
company. The bili which charges that
stockholders of (he company lost this
swum through alleged fraud on the
part of Doheney i the lamous Elk-
hilly off acnndul, was (led by a Las
Angeles faw finn on behalf of Frank
Hi. Kukkel. attorney, of Cineinnan.
‘ho brought the vil m the tnterest
of tumself and other Mockbalders.

The bill declares that the $10,000,-
008 wax lust by (he stackitolders solely
because Daheney acted fraudulently
in connection with the leasing from
foriner secretary ot (he interior Albert
B. Fall of the Blk Neva! Oil
Reserve. and th large sums
spent in development’ of the Melda
themselves, and aisewhere in con-
nection iwih the deal Tt demands
that an accounting be made ty
Doheny and thet such money as wa

expenced in the alleged giving of a
$100.00 bribe to Fal, amd in the de-
velopment of the frmudulently leased
fletds, ba returned to the stockholders.

  

 

 
 
“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.
 