Los Angeles, Calif —(?)—Edward L
Doheny and directors of the Pat-
American Petroleum and Transport
company, today faced a bill of com-
plaint demanding an accounting of
$10,000,000 stockholders allege they
Jost in the fraudulent Jease of the
Elk Hills naval oil reserve.

The complaint, filed in behalf of
Prank 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 alter the com-
pany had spent several million dol-
jars in the development of the field.

BARGAIN WITH FALL.

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

‘The $100,000 delivered to Fall by
E. L, Doheny, Jr, tn the much dis-|
cussed “little black satchel” was de-_
clared in the suit io have heen given.
by the stockholders and used as a
bribe. An accounting of this exchange
also is asked

Kunkel sets forth in the complaint
that neither he nor any of the
plaintiff stockholders had any
Knowledge of the negotintions and
deseribes 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 3s charged
with dominating the affairs of the
company when the lease was signed.
 
“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.
 