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

 

fCantinunsed Om Pace Tew \
 
“Los Angeles, Aug. 28.—Edward L.
Doheny and directors of the Pan-
Americun Petroleum and Transport
company, today faced a bill of com-
plaint demanding an accounting of
$10,000,000 stockholders allege they
lost in the fraudulent lease of the
JElk Hills naval oil reserve.

- ‘Fhe complaint, filed in behalf of
[Frank H. Kinkel, Cincinnati, and
other shareholders, declares the loss
resulted from the cancellation of the
lease by a decision of the Wnited
States supreme court after the com-
pany had spent several million dol-
lars in the development 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. Deheny. Jr.; in the much dis-
cussed “little black satchel” was de-
clared in the suit to have been the
richtful property of the stockholders
and used as a bribe. |

Kinkel in the complaint 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 stockhold-
ers.”

The complaint further declares that
Doheny has disposed of his contro!l-
ing interest in the company to the
Pan American eastern petroleum com-
pany which is alleged to be controlled
now by the Standard Oil company of
Indiana.

The suit demands that Doheny per-
sonally be compelled to reimburse the
stockholders for the alleged losses.

Doheny refused to comment on the
complaint, declaring he would submit
it to his attorneys before making any
announcement.
 