| Los Angeles, Aug. 28.—(AP)—2id-
ward L. Doheny and directors of the
Pan-American Petroleum and Trans-
port company, today faced a bill of
complaint demanding an accounting of
$10,000,000 stockholders allege they
lost in the fradulent lease of the Elk
(Hills Nava! Oil Reserve.

‘The complaint, filed in behalf of
Prank H. Kunkel, Cineinnati, and oth-
er shareholders, declares the loss re-
‘sulted from the cancellation of the
lease by a decision of the United
|States supreme court after the com.
/pany had spent several million dollar:
‘in the development of the field.

| The lease was negotiated for thi
'government by Albert B. Fall, ther
‘secretary of the interior.

The $100,000 delivered to Tall by FE
'I., Doheny, Jr., in the much discussec
little black satchel,” was declared ii
the suit to have been given by th
stockholders and used as a bribe. Al
accounting of his exchange also i
asked,

Kunkel sets forth in the complain
that neither he nor-any of the plain
tiff stockholders had anv knowledge o
the negotiations and describes Dohe
ry’s conduct of the deal as a “frau
not only against the United State
but also against the Pan- Americat
;company and its stockholders.” Do
iheny is charged with dominating th
| niintyuneiste come y when the leas
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.
 