' Los Angeles, Calif.—)—Edward L.
‘Doheny and directors of the Pan-
American Petroteunt and Transport
Scompany, Monday faced a bill of com-

' ptaint demanding an accounting of

| $39,000,000 stockholders alegre they

fast in the fraudulent tease of the Eik
. Hills Naval Oil reserve.
The complaint, filed im behail of

Frank H. Kunkel, Cincinnss:, ant
other sbharehniders, declared the toss
!resulted from the caaceliation of the

lease by a decision of the Umited
States Supreme court after the com
; pany had spent several miliion dollans
In the development of the field. The
‘lease was negotiated far the govecn-
‘ment by Albert FL Fall. theo secretary
fof the interior.

The $196,500 delivernd to Fall by E.

L. Doheny Jr. in the much diss
ttle black satchel” was deciar
the suit to have been given by the
holders and used as a bribe. An
-accomntngs of the exchange also cs
asked,
Kunkel sets forsh in the complaint
that nether he nor any of the piain-
dM stockholders had any knawiedse
of the negotiations and desermbes Do-
heny’a conduct of the deat as a “fraud
not oniy against the United States but
aiso against the Pan-American com.
pany and its stockholders” Doheny is
charged with dominating the affairs
of the company when the lease was
mignesd],

 

 

 

 

 

 

 

    

 

 

 

 
 
“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.
 