Log Angeles, Cal, Aug. 28—(P}—
Edward L. Doheny and directors of
the Pan-American Petroleum and
Transport company, today faced ao
lnl of complaint demanding an ac-
counting of $10,000,000 stockholders

Ellege they have lost in the fraud-
uient lease of the Elk His nayal
cil reserve.

The complaint, {led in behalf of
frank Ho Kunkel, Cinelnnat!, and
inther shareholders, declared the loss
‘resulted from the caucellation of
| the lease by  deciston of the
Uniled States supreme court after
the company had spent several mil-
llon dollars in the development of
the field. *

The lease was negolleled for the
government by Albert I" Fall, then
aecreinty of the interior.

The $100,000 celivered to Fall by
EH L, Doheny, jr. in the much dls-
cussed “Wittle black satchel” was de-
elared in the suit to have been
inven by the stockholders and used
as & bribe. An necounting of this
exchange also is asked.

Kunkel sets forth in the com-
qualnt thal nelther he nor any of
tha plaintiff stockholders had any
anowledge of the negotinuions and
describes Doheny’s conduct of the
aenl as a “fraud not only against
the Uniled States but also against
{the Pan American company and its
ttockhalders,” Doheny is charged
with dominating the affalrs of the
company when the iease was signed.
 
“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.
 