Los Angeles, Aug. 28 (AP) —

A suit against E. L. Doheny and
the directors of the Pan-American
Petroleum Transport company by
etockholders of the latter corpor-
ation who allege that the share-
holders were the real losers in
the Elk Hills naval oil reserve
leasing scandal, was on file here
today.

The complaint, filed yesterday
in behalf of Frank H. Kunkel of
Cincinnati, and other sharehold-
ers, declares that the stockhold-
ers lost $10,000,000 as the result
of the cancellation of the fraud-
ulent lease. It asks that Doheny
and the board of directors be com-
pelled to render an accounting.

The $100,000 which was de-
livered to Albert B_ Fall, former
secretary of the interior, by E. L.
Doheny. jr., in the much discus-
sed “little black satchel,’’ was de-
clared in the suit to have been
the rightful property of the stock-
holders. An -aceounting of this
exchange, which the complaint
branded as a bribe, was demand-
ed,

The lease, which was negotiat-
ed in behalf of the government by
Fall, was cancelled by a decision
of the United States supreme
court after the Pan-American had
spent several million dollars to-
ward developing the Elk Hills,
Calif., oil reserve and on the
building of oil storage tanks at
Pearl Harbor, Hawaii.

Kunkel’s complaint sets forth
that neither he nor any of the
plaintiff stockholders had = any
hand in the leasing negotiations.
Some time ago, aceording to the
suit, demand was made upon the
board of directors of the company
for the accounting but nothing
was done about it.

The suit demands that Doheny
personally be compelled to reim-
burse the stockholders for the al-
leged losses.
 
“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.
 