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LOS ANGELES, Aug. 28 —Ed-
ward L. Doheny and directors of
the Pan-American Petroleum and
Transport company, today faced a
bill of complaint demanding an
accounting of $10,000,000  stock-
holders allege they lost in the fra-
udulent lease of the Elk Hills Na-
val Oil Reserve. —

The complaint, filed in behalf
of Frank H. Kunkel, Cincinnati,
-and other shareholders, declares
the loss resulted from the cancel-
lation of the lease by a decision
of the United States Supreme
Court after the company had spent
several million dollars in the de-
velopment of the field.
 
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.
 