LOS ANGELES, Aug. 28.—()—
Edward L. Doheny and directors
of the Pan American Petroleum
and Transport Company, today
faced a bill of complaint demand-
ing an accounting of $10,000,000
stockholders allege they lost in
the fraudulent lease of the Elk
Hills Naval Oil reserve,

The complaint, filed in behalf of
Frank H. Kunkel, Cincinnati, and
other shareholders, declares the
loss resulted from the cancella-
tion of the lease by a decision of
the United States supreme court
after the company had spent sev-
eral million dollars in the devel-
opment 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. Doheny, Jr.. in the much
discussed “‘little black satchel’ was
declared in the siut to have been
the rightful property of the stock-
holders and used as a bribe. An
accounting of this exchange also is
asked.
| Kunkel sets forth in the com-
plaint that neither he nor any of
the plaintiff stockholders had any
knowledge of the negotiations and
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
stockholders.” Doheny is charged
with dominating the affairs of the
company when the lease was sign-
ed.
 
~ Los Angeles, Aug. 28. (P)—PFevard
ZL. Doheny and directors.of the Pan
Atuerican Petroleum and Transport
company, today. faced a bill of com-
plaint demanding an accounting of
$10,001,000 stockholders allege they
Jost in the Yreudulent leasé of the
Hix Hills Naval Oil:reserve. |

‘The -compiaint, filed in. behalf of
Frank HL. Kunkel, ‘Cincinnati, and
other shareholders,: declares’ the loss
resulted from: the “cancellation ® of
the lease bya decision of the United
Siates supreme court agter.the com-
Yany had spent several million’ dol-
Jars. in the development'‘of. the
Held. a a

“The lease was negotiated: for the
Rovermment by. Albert B. Fall, then
“pecretary of ihe interior +

‘The. $100,000 delivered to Fall by
EL. Dohery, jr, in the much’ dis-
cussed “little black satchel” was
Weclared inthe suit to have-heen
Biven by. the stockholders ‘and used

“a bribe. An accounting of this
esichange also is asked.
 