Los Angeles—(AP)—Edward L.
Doheny and directors of the Pan-
American Petroleum and Transport
company today faced a bill of com-
plaint demanding an accounting of
$10,000,000 which 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
other shareholders, declared the loss
resulted from the cancellation of the
lease by a decision of the United
States supreme court. after the com-
pany had _ spent” several million
dollars in development of the field.

The lease was negotiated for the
government by Albert F. Fall, then
secretary of the interior.

The $190,000 delivered to Fall by
E. L. Doheny, Jr., in the much dis-
cussed “little black satchel,” was de-
clared in the suit to have been given
by the stockholders and used as a
bribe. An accounting of this ex-
change also is asked.

Kunkel sets forth in the complaint
that neither he nor any of the
plaintiff stockholders had any know!l-
edge of the negotiations and de-
scribes Doheny’s conduct of the deal
as a “fraud not only against the
United States but also against the
l'an-American company and its
stockholders.” Doheny is charged
with dominating the affairs of the
‘company when the lease was signed.
 
| Los Angeles, Aug. 28.--(1—A
bill of complaint demanding an ac-
counting of $10,000,000 was filed in
the U. S. district court Monday
against Edward L. Doheny and
the Pan-American Petroleum and
Transport company.

The bill, which charges that
stockholders of the company lost
this sum through alleged fraud on
the part of Doheny in the famous
Elk Hills ofl scandal, was filed by
a Los Angeles law firm on behalf
of Frank H. Kunkel, attorney = of
Cincinnati, who brought the suit in
the interest of himself and other
stockholders.

The bill declares the $10,000,000
was lost by the stockholders solely
because Doheny acted fraudulently
in connection with the leasing from
‘former Secretary of the Interior Al-
Bert B. Fall of the Elk Hills naval
oil reserve, and through large sums
spent ip development of the fields
themselves, and elsewhere in con-
nection with the deal. It demands
that an accounting be made by Do
heny and that such money as was
expended in the alleged giving of a
$100,000 bribe to Fall, and in the de
velopment of the fraudulently leas
ed fields, be returned to the stock
holders,
 