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LOS ANGELES, California, Aug.
28—Edward L. Doheny and direc-
tors of the Pan-American Petro-
leum and Transport Company fac-
ed a bill of complaint demand-
{ng an accounting of $10,000,000
stockholders allege they lost in the

fraudulent lease of the Elk Hills
naval oil reserve,

The complaint, filed in behalf of
Frank H. Kunkel, Cincinnati, and
shareholders, declared the loss re-
sulted from the cancellation of the
lease by a decision of the United
States Supreme court after the
company had spend several million
dolars in the development of the
field.

The least was negotiated for the
government by Albert F. Fall, then
Secretary of the interior.

The $100,000 delivered to Fall by
E. L. Doheny, Jr., in the much dis:
cussed “little black satchel” was de
elared in the suit to have been giv:
en by the stockholders and used as
a bribe. An accounting of this ex:
change also is asked.

‘Kunkel sets forth {In the com.
Plaint that neither he nor any of
the plaintiff stockholders had any
knowledge of the negotiations anc
describes Doheny’s conduct of the
deal as'a “fraud not. only against
the United States but also against
the Pan American company and it:
stockholders.” Doheny {s chargec
with dominating the affairs of the
company when the lease was sign
at.
 
“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.
 