By Associated Praga.
LOS ANGELES, Aug. 28.—Edward
j La. Dohney and directors of the Pan
i American Petroleum and Transport
feompany, today faced a bill of com-
laine demanding an accouating of
; $10,000,000 stockholders allege they
‘toast inthe friudulent lease of the Eik
(HIG naval oil reserve.
i fhe complaint, filed in behalf of
| Frank TM. Kunkel, Cincinnati, and
other sharehulders, declares the loss
fresulted from the cancelation of the
lease by ai decision of the United
nlates supreme court after the eam-
pany had gpent several million dollars
‘in the devciopment of the field.
| The lease was negotiated for the
i government by Albert B. Fail, then
i secretary of the interior. .
; The $100,000 delivered to. Fall: by
/ BE. T. Dohney, Jr. in the mueh dis-
cussed “little black satchel” was de-
pelared in the suit to have been the
righitul property of the stockholders
Pand used asa bribe. ;
Kunkel in the complaint describes
| Dohney'’s conduct ef the dealas a
“fraud not only against the United
States but alsa against the Pan
(American company and its stock-
| holders.” :
~The complaint further declares that
“Dohney has disposed of his controll-
‘ing interert in the. company. tothe
Pan Anierionn Eastern Petroleum
company which is alleged to be con.
trolled naw by the Standard Oil com-
sony af indiang, :
The suit demands that Dohney per-
sonally-bo gompelled to reimbuse the
-Btockholdergs for the. alleged losses,
~» Dohney refuied to comment on the
conplaint, declaring he would: submit
it te his attorneys before making any
ceine rae : :

 

 

     

 

 

     
 
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

 

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