Los Angeles—(AP)—Edward L.
Doheny and directors of the Pan-
American Petroleum and Transport
company today faced a bill of com-
plaint demanding an accounting of
$10,000,000 which 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, declared the loss
resulted from the cancellation of the
lease by a decision of the United
States supreme court. after the com-
pany had _ spent” several million
dollars in development of the field.

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

The $190,000 delivered to Fall by
E. L. Doheny, Jr., in the much dis-
cussed “little black satchel,” was de-
clared in the suit to have been given
by the stockholders and used as a
bribe. An accounting of this ex-
change also is asked.

Kunkel sets forth in the complaint
that neither he nor any of the
plaintiff stockholders had any know!l-
edge of the negotiations and de-
scribes Doheny’s conduct of the deal
as a “fraud not only against the
United States but also against the
l'an-American company and its
stockholders.” Doheny is charged
with dominating the affairs of the
‘company when the lease was signed.
 
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.
 