| Los Angeles, Aug. 28.—(AP)—2id-
ward L. Doheny and directors of the
Pan-American Petroleum and Trans-
port company, today faced a bill of
complaint demanding an accounting of
$10,000,000 stockholders allege they
lost in the fradulent lease of the Elk
(Hills Nava! Oil Reserve.

‘The complaint, filed in behalf of
Prank H. Kunkel, Cineinnati, and oth-
er shareholders, declares the loss re-
‘sulted from the cancellation of the
lease by a decision of the United
|States supreme court after the com.
/pany had spent several million dollar:
‘in the development of the field.

| The lease was negotiated for thi
'government by Albert B. Fall, ther
‘secretary of the interior.

The $100,000 delivered to Tall by FE
'I., Doheny, Jr., in the much discussec
little black satchel,” was declared ii
the suit to have been given by th
stockholders and used as a bribe. Al
accounting of his exchange also i
asked,

Kunkel sets forth in the complain
that neither he nor-any of the plain
tiff stockholders had anv knowledge o
the negotiations and describes Dohe
ry’s conduct of the deal as a “frau
not only against the United State
but also against the Pan- Americat
;company and its stockholders.” Do
iheny is charged with dominating th
| niintyuneiste come y when the leas
was signed.

 

 
 
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.
 