Tos Angelos, Ang. 38 (€) -— A suit
against KE. T, Doheny and the directors
of the Pan-American Petrolewn
Transport Cb, by stockholders af the
Intter corporation who allege that the
sharcholders ‘were the real Tosors in
thé" Rik Hills naval of? reerve lensing
seandn), was on filo herve foday,

The complaint, flled yesterday in
behalf of Frank Eh Kunkel of Cincin-
nati and other shareholders, declares
that the stockholders lost $10,006,006
as the result of the cancollation of the
fraudulent lease, It asks that Doheny
and the board of directors be com-
pelled ta render an necounting.

The $100,000 which waa delivered
ta Albort B. Fall, former secretary of
the interior, by E. &. Doheny, Jr., In
the much discussed little black
natchol,” was declaréd in the sult to
have been the righttul property of the
slockholders und used as a bribe. An
accounting of this exchange, which
the complaint brands as a bribe, fe
demanded,

DISCLAIM RESPONSIBILITY *

The Jense, which was negotiated Ir
behalf of the government by Fall, was
eanceled by 0 decision of the United
States supreme court after the Pan-

 
 The Jense, which was negotiated In
peohnlf of the government by Fall, was
ennceled by n decision of the United
States supreme court after the Pan-
Amorican had spent several million
dollars toward developing the Elk
‘Jlls, Cullt,, olf reserve and on the
 
“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.
 