ae ANGELES, Cal.—(4)—Ed ward
L. Doheny and directors of the
Pan-American Petroleum and Trans-
port company Tuesday faced a bill of
complaint 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 dol-
lars in the development of the field.

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

The $100,000 delivered to Fall by
I. L. Doheny. Jr... in the much dis-
cussed ‘‘little black satchel,”’ was de-
clare in the suit to have been given
by the stockholders and used as a
bribe. An accounting of the exchange
also is asked.

Kunkel sets forth in the complaint
that neither he nor any of the plain-
tiff stockholders had knowledge of
the negotiations and describes Do-
heny’s conduct of the deal as a
“frand not only against the United
States but also against the Pan-
American company and {ts stockhold-
ers.”

Doheny fis charged with dominating
the affairs of the company when the
lease was signed.

 
 
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,
 