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. 27.—(4)—
A bill of complaint, demanding an
accounting of $10,000,000, Was filed
tn the U. S. district court today
against Edward L. Doheny and the
Pan-American Petroleum and
Transport company. The  obill,
which charges that stockholders of
the company jost their sum through
alleged fraud on the part of Doheny
wal the beget Elk dar pe acan-

was y wy a shi ,
aw ‘firm on Sar oven
Kunkel, attorney, of Cincinnati,
who brought the evit tn the tnter-
ests of himself and other stock-
holders.

The bili declares that the
$10,000,000 was lost by the stock-
holders solely because Doheny act-
ed fraudulently in connection with
the leasing from former Secretary
of the Interior Albert B. Fall of the
Elk Hills paval oli reserve, and
through large eums spent in de-
velopment of the fields themselves,
and elsewhere in connection with
the deal. It demands that an ac-
counting 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 develop-
ment of the fraudulently leased
fields, be returned to the stock-
holders.

The complaint declares _ that
neither Kunkel nor the other stock-
holders had any hand in the al-
leged fraud whereby the money
was lost.

   
 
 
 
   
 
 
  
 