Los Angeles—(AP)—Edward L.
Doheny and directors of the Pan-
American Petroleum and Transport
company today faced a bill of com-
plaint demanding an accounting of
$10,000,000 which 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, declared the loss
resulted from the cancellation of the
lease by a decision of the United
States supreme court. after the com-
pany had _ spent” several million
dollars in development of the field.

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

The $190,000 delivered to Fall by
E. L. Doheny, Jr., in the much dis-
cussed “little black satchel,” was de-
clared in the suit to have been given
by the stockholders and used as a
bribe. An accounting of this ex-
change also is asked.

Kunkel sets forth in the complaint
that neither he nor any of the
plaintiff stockholders had any know!l-
edge of the negotiations and de-
scribes Doheny’s conduct of the deal
as a “fraud not only against the
United States but also against the
l'an-American company and its
stockholders.” Doheny is charged
with dominating the affairs of the
‘company when the lease was signed.
 
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
 