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. 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

 

fCantinunsed Om Pace Tew \
 