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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. 27 (A bill
ef complaint demanding an ac-
of $10,000,000 was filed in
the U. S&S. district court today
against Edward 1. Doheny and the
Pan-American Petroleum and Trans-
po company. The bill, which
charges that e«tockholders of the
company lost this sum through 4l-
feged fraud on the part of Doheny
$m the famous Elk Hills ol! scandal,
was filed by a Los Angeles law
rm on behalf of Frank H. Kan-
el, attorney, of Cincinnati, who
b t the euit in the interests
of himself and other stockholders.
The bill declares that the $10,000,-
000 was lost by the stockholders
golely because Doheny acted frand-
wlently in connection with the leas-
from former Secretary of the
Anterior Albert B, Fall of the Elk
Hills naval oj] reserve, and through
farge sums spent in development
of the fields themselves, and else-
where in connection with the deal
Jt demands that an accounting b¢
made by Doheny and that such
as was expended in the al-
leged giving of a $100,000 bribe t
Fall, and in the development of th
fraudulently leased fields, be re
furned to the stockholders.
_ The complaint declares that neith.
er Kunkel nor the other stock
holders had any hand in the al

ery
money and that the board had don
pothing. He also demands tha
hen the accounting is rendered
court issue a decree and judg
againet Doheny com, pell ing
im personally to repay this mone:
te © wt) wlders,
 