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.
 
eae”, Se Te ee ae ae eee ee Te

LOS ANGELES, Aug. 28 —Ed-
ward L. Doheny and directors of
the Pan-American Petroleum and
Transport company, today faced a
bill of complaint demanding an
accounting of $10,000,000  stock-
holders allege they lost in the fra-
udulent lease of the Elk Hills Na-
val Oil Reserve. —

The complaint, filed in behalf
of Frank H. Kunkel, Cincinnati,
-and other shareholders, declares
the loss resulted from the cancel-
lation of the lease by a decision
of the United States Supreme
Court after the company had spent
several million dollars in the de-
velopment of the field.
 