Los ‘Angeles, Aug. 27—A bill of
‘complaint demanding an accounting
of $10,000,000 was filed in U. S. Dis-
‘trict Court today against Edward
'L. Doheny and the Pan-.imerican
|Petroleum and Transport company. |
| The bill, which charges that stock- |
‘holders of the company lost this sum
through 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. Kun-.
‘kel, attorney. of Cincinnati, who
brought the suits in the interests of
‘himself and other stockholders.
Because of Fraud
The bill declares that the $10,000,-
000 was lost by the stockholders |
‘solely because Doheny acted fraud-
‘ulently in connection with the leas-
ing from former Secretary of the In-
terior Albert B. Fall of the Elk Hills
‘Naval Oil Reserve, through large)
‘sums spent in development of the
fields themselves, end elsewhere in
‘connection with the deal. It de-|
mands that an accounting be made
by Doheny and that such money as
was expended in the alleged giving
of a $100,900 bribe to Fall, and m
development of the fraudulently
leased fields, be returned to the
stockholders. |
The complaint declares that -eitner
Kunkel nor the octher stoclzholders.
had any hand in the alleged fraud
whereby the money was lost. It al-.
leges that demand was made upon)
the board of directors of the oil
company for the starting of legal ac- |
tion against Doheny to force the ac-
counting and recovery of this money
and that the board had done nothing. |
The bill cites that in court actions)
taken by the government ior the)
cancelling of the Elk Hills leases, a.
decision was rendered whereby the
oil company and the = stockholders:
lost more than $10,900,000 exnended
in construction of storage tanks at
Pearl Harbor. Hawaii, and in other)
developments of the fields. |
Doheny Pominated
Describing Doheny'’s conduct of the
lease matter as a “fraud not only .
against the United States but also
against the Pan-American and all
its stockholders”, the complaint de-_
clares that at the time of the Elk

 

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LOS ANGELES, California, Aug.
28—Edward L. Doheny and direc-
tors of the Pan-American Petro-
leum and Transport Company fac-
ed a bill of complaint demand-
{ng 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
shareholders, declared the loss re-
sulted from the cancellation of the
lease by a decision of the United
States Supreme court after the
company had spend several million
dolars in the development of the
field.

The least 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., in the much dis:
cussed “little black satchel” was de
elared in the suit to have been giv:
en by the stockholders and used as
a bribe. An accounting of this ex:
change 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 anc
describes Doheny’s conduct of the
deal as'a “fraud not. only against
the United States but also against
the Pan American company and it:
stockholders.” Doheny {s chargec
with dominating the affairs of the
company when the lease was sign
at.
 