 

+ 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

    

 
 
| Los Angeles, Aug. 28.--(1—A
bill of complaint demanding an ac-
counting of $10,000,000 was filed in
the U. S. district court Monday
against Edward L. Doheny and
the Pan-American Petroleum and
Transport company.

The bill, which charges that
stockholders of the company lost
this sum through alleged fraud on
the part of Doheny in the famous
Elk Hills ofl scandal, was filed by
a Los Angeles law firm on behalf
of Frank H. Kunkel, attorney = of
Cincinnati, who brought the suit in
the interest of himself and other
stockholders.

The bill declares the $10,000,000
was lost by the stockholders solely
because Doheny acted fraudulently
in connection with the leasing from
‘former Secretary of the Interior Al-
Bert B. Fall of the Elk Hills naval
oil reserve, and through large sums
spent ip development of the fields
themselves, and elsewhere in con-
nection with the deal. It demands
that an accounting be made by Do
heny and that such money as was
expended in the alleged giving of a
$100,000 bribe to Fall, and in the de
velopment of the fraudulently leas
ed fields, be returned to the stock
holders,
 