Los Angeles, Aug. 28 (AP) —

A suit against E. L. Doheny and
the directors of the Pan-American
Petroleum Transport company by
etockholders of the latter corpor-
ation who allege that the share-
holders were the real losers in
the Elk Hills naval oil reserve
leasing scandal, was on file here
today.

The complaint, filed yesterday
in behalf of Frank H. Kunkel of
Cincinnati, and other sharehold-
ers, declares that the stockhold-
ers lost $10,000,000 as the result
of the cancellation of the fraud-
ulent lease. It asks that Doheny
and the board of directors be com-
pelled to render an accounting.

The $100,000 which was de-
livered to Albert B_ Fall, former
secretary of the interior, by E. L.
Doheny. jr., in the much discus-
sed “little black satchel,’’ was de-
clared in the suit to have been
the rightful property of the stock-
holders. An -aceounting of this
exchange, which the complaint
branded as a bribe, was demand-
ed,

The lease, which was negotiat-
ed in behalf of the government by
Fall, was cancelled by a decision
of the United States supreme
court after the Pan-American had
spent several million dollars to-
ward developing the Elk Hills,
Calif., oil reserve and on the
building of oil storage tanks at
Pearl Harbor, Hawaii.

Kunkel’s complaint sets forth
that neither he nor any of the
plaintiff stockholders had = any
hand in the leasing negotiations.
Some time ago, aceording to the
suit, demand was made upon the
board of directors of the company
for the accounting but nothing
was done about it.

The suit demands that Doheny
personally be compelled to reim-
burse the stockholders for the al-
leged losses.
 
et RT EOE eS

LOS ANGELES, AUE. 28,—Kdw ard
L. Doheny and directors of the Pan
American Petroleum and Transport
Company, today faced a bill of core-
plaint demanding an accounting of
$10,000,000 stockholders allege they
lost in the fraudulent lease of the
Elks Hills naval oil reserve.

The complaint, fied in behalf of
Frank H. Kinkel, Cincinnati, and
other stockholders, declares the
loss resulted from the cancollation
of the lease by a decision of the
United States supreme court after
the ‘company had spent several mil-
lion dollars in the development of
the field..

The $100,000 deliveted to Fall by
E. L. Dohney, jr., in the much dis-
cussed “Little black satchel” was
declared in the suit to have been
given by the stockholders and used
as:‘a bribe.

Kinkel ip the complaint describes
Dohney’s conduct of the deal as a
“fraud not only-against the United
States but also against the Pan
American company and its stock-
h@iders.”

The complaint further declares
that Dohney has disposed of his
controlling interest in the cowgpany
to the Pan American Eastern Pe-
troleum Company which is alleged
to be controlled now by the Stand-
ard Of] Company of Indian2.

_ The suit demands that ‘Dohney

personally be compelled to reim-
burse. the stockholders for the at-
leged losses.
_ Dohney refused to comment on
the complaint, declaring he woule
Submit it to his attorrfeys before
making. any announcement.
 