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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. (P)—PFevard
ZL. Doheny and directors.of the Pan
Atuerican Petroleum and Transport
company, today. faced a bill of com-
plaint demanding an accounting of
$10,001,000 stockholders allege they
Jost in the Yreudulent leasé of the
Hix Hills Naval Oil:reserve. |

‘The -compiaint, filed in. behalf of
Frank HL. Kunkel, ‘Cincinnati, and
other shareholders,: declares’ the loss
resulted from: the “cancellation ® of
the lease bya decision of the United
Siates supreme court agter.the com-
Yany had spent several million’ dol-
Jars. in the development'‘of. the
Held. a a

“The lease was negotiated: for the
Rovermment by. Albert B. Fall, then
“pecretary of ihe interior +

‘The. $100,000 delivered to Fall by
EL. Dohery, jr, in the much’ dis-
cussed “little black satchel” was
Weclared inthe suit to have-heen
Biven by. the stockholders ‘and used

“a bribe. An accounting of this
esichange also is asked.
 