Tos Angelos, Ang. 38 (€) -— A suit
against KE. T, Doheny and the directors
of the Pan-American Petrolewn
Transport Cb, by stockholders af the
Intter corporation who allege that the
sharcholders ‘were the real Tosors in
thé" Rik Hills naval of? reerve lensing
seandn), was on filo herve foday,

The complaint, flled yesterday in
behalf of Frank Eh Kunkel of Cincin-
nati and other shareholders, declares
that the stockholders lost $10,006,006
as the result of the cancollation of the
fraudulent lease, It asks that Doheny
and the board of directors be com-
pelled ta render an necounting.

The $100,000 which waa delivered
ta Albort B. Fall, former secretary of
the interior, by E. &. Doheny, Jr., In
the much discussed little black
natchol,” was declaréd in the sult to
have been the righttul property of the
slockholders und used as a bribe. An
accounting of this exchange, which
the complaint brands as a bribe, fe
demanded,

DISCLAIM RESPONSIBILITY *

The Jense, which was negotiated Ir
behalf of the government by Fall, was
eanceled by 0 decision of the United
States supreme court after the Pan-

 
 The Jense, which was negotiated In
peohnlf of the government by Fall, was
ennceled by n decision of the United
States supreme court after the Pan-
Amorican had spent several million
dollars toward developing the Elk
‘Jlls, Cullt,, olf reserve and on the
 
LOS ANGELES, Aug. 28.—()—
Edward L. Doheny and directors
of the Pan American Petroleum
and Transport Company, today
faced a bill of complaint demand-
ing 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
other shareholders, declares the
loss resulted from the cancella-
tion of the lease by a decision of
the United States supreme court
after the company had spent sev-
eral million dollars in the devel-
opment 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. Doheny, Jr.. in the much
discussed “‘little black satchel’ was
declared in the siut to have been
the rightful property of the stock-
holders and used as a bribe. An
accounting of this exchange 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 and
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
stockholders.” Doheny is charged
with dominating the affairs of the
company when the lease was sign-
ed.
 