~ 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.
 
ae ANGELES, Cal.—(4)—Ed ward
L. Doheny and directors of the
Pan-American Petroleum and Trans-
port company Tuesday faced a bill of
complaint 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 dol-
lars in the development of the field.

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

The $100,000 delivered to Fall by
I. L. Doheny. Jr... in the much dis-
cussed ‘‘little black satchel,”’ was de-
clare in the suit to have been given
by the stockholders and used as a
bribe. An accounting of the exchange
also is asked.

Kunkel sets forth in the complaint
that neither he nor any of the plain-
tiff stockholders had knowledge of
the negotiations and describes Do-
heny’s conduct of the deal as a
“frand not only against the United
States but also against the Pan-
American company and {ts stockhold-
ers.”

Doheny fis charged with dominating
the affairs of the company when the
lease was signed.

 
 