By ihe Associated Press. :

Los Angeles, Cal. Aug. 27.—A bill
of complaint demanding an account-
ing of $10,000,000 was filed in the
United States district court today
against Edward L. Doheny and the
Pan-American Petroleum and Trans-
port company. The bill which charges
that stockholders of the company lost
this sum thru alleged fraud on the
part of Doheny in the famous Elk
Hills oil scandal, was filed by a Los
Angeles law firm on behalf of Frank
H. Kunkel, attorney, of Cincinnati,
who brought the suit in the interests
of himself and other stockholders.

The bill declares that the $10,000,000
was lost by the stockholders solely be-
cause Doheny acted fraudulently in
connection with the leasing from for-
mer Secretary cof the Interior Albert
B. Fall of the Elk Hills naval oil re-
serve, and thru large sums spent in
development of the fields themselves,
and elsewhere in connection with the
deal. It demands that an accounting
be made by Doheny and that such
money as was expended in the alleged
giving of a $100,000 bribe to Fall, and
in the development of the fraudulent-
ly leased fields, be returned to the
stockholders.

The complaint declares that neither
Kunkel nor the other stock holders
had any hand in the alleged fraud
whereby the money was lost. He al-
leges that demand was made some
time ago upon the board of directors
of the oil company for the starting of
legal action against Doheny to force
the accounting and recovery of this
money and that the board had done
nothing. He also demands that when
the accounting is rendered, the court
Issue a decree and judgment against
Doheny compelling him personally to
repay this money to the stockholders.

 
 
 

+ Los Angeles, Aug. .28-—(A.P.)—
Edward -L.; Doheny and directars of
the Pan-American: Petraleum and
Transport company, today faced &
DI of complaint:demanding an &
count-of * $10,000,000 steckholders
allege-they lost In the fraudulent
lease of the “Elk ‘Hilla naval oll re-
serve.” ee

Tha complaint, filed in behalé of
Frank H. Kunkel, Cincinnati, .and
other ‘sharoholders, declares’ the loxs
resulted from tha cancellation af the
leane by A‘décldibh’ “at the” United
States’ Shbréme court after the com-
pany BpOht ‘several millian dol-
lars inthe davelapment of the field.

The lease was negotiated for the
government by Albert B, Fall, then
secretary of the inierlar. .... ‘

The $100,000 dollvored to Fall-by
E. L. Doheny, Jr., in the much dls-
cuased “litle black axtchel” was de
clared In.the sult {a have been given
by the stockholders and used as ‘8
bribe’. .An accounting of bis x:

 

 

 
 ehangé also ia asked. |

Kunkel sete forth in the complaint
that neither he nor any. of. the plain-
tit! stockholders had ady Enowledge
of the. negotiatfane and ‘describes
Doheny'a conduct of the deal az 8
“traud not only, againat..the United
States but also against the Pan-Am-
eri company and ita .atockhold-
ers": Dobeny fe charged with dom-
inating the affaira. of, the company
when the lease was signed, »

‘The complaint ‘further deciares
that aince then ‘Doheny bas dlsposed
of bls’ cohtralling | interest inthe
eompanyto the Pan-American East-
ern Petroleum company which Is a)-
leged to be cantralled by the Btand-
ard Ol company af Indiana.

The sult demands that Doheny
personally be campelied,” to relm-
burs {he ‘atockhalders for the alles:
ed losses,” BSA .

Dohany retused to comment on the
complaint, declaring he wauld. sub-
mit it to Als attorneys before making
eee aaa meen gmk

    

 
 