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.—Edward L.
Doheny and directors of the Pan-
Americun Petroleum and Transport
company, today faced a bill of com-
plaint demanding an accounting of
$10,000,000 stockholders allege they
lost in the fraudulent lease of the
JElk Hills naval oil reserve.

- ‘Fhe complaint, filed in behalf of
[Frank H. Kinkel, Cincinnati, and
other shareholders, declares the loss
resulted from the cancellation of the
lease by a decision of the Wnited
States supreme court after the com-
pany had spent several million dol-
lars in the development 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. Deheny. Jr.; in the much dis-
cussed “little black satchel” was de-
clared in the suit to have been the
richtful property of the stockholders
and used as a bribe. |

Kinkel in the complaint 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 stockhold-
ers.”

The complaint further declares that
Doheny has disposed of his contro!l-
ing interest in the company to the
Pan American eastern petroleum com-
pany which is alleged to be controlled
now by the Standard Oil company of
Indiana.

The suit demands that Doheny per-
sonally be compelled to reimburse the
stockholders for the alleged losses.

Doheny refused to comment on the
complaint, declaring he would submit
it to his attorneys before making any
announcement.
 