Evening star., 1924-03-17
Pomerene and Roberts Ask
Injunction to Stop Produc-
ti0n in California.
BILL AYERS FALL GOT
100000 FOR CONTRACT
Misled Harding and DENLY Into
Authorizing Policy, Says
q. S. Petition.
By the Associated Press,

By the Associated Press.
Los ANGELES, March 17.-Suit to
cancel the lease of California naval
Oil lands to the Pan-American Pc
troleum and Transport Company, as
well as its accompanying agreements
for construction and stocking by that
company of naval oil storage facili-
ties at Pearl Harbor, Hawaii, was
filed by the government here today.
The bill of complaint charges that
bribery entered into the making of
the agreements, as we'll as. alleging
fraud, conspiracy and illegality, as
in the case of the suit filed March 13
at Cheyenne. Wyo., with reference to
the Teapot Dome lease and contracts.
Ask Temporary Injunction.
AS in the Teapot suit, the govern
ment's special counsel, Atlee Pomer-
enc and Owen ]. Roberts, asked the
United States District Court to issue
temporary injunction stopping the
production Of oil, appoint receivers
oil lands. and to enter a final de-
SiNC aCSidi ihS Noiu anu CduCellluS tue
lease and associated arrangements.
The Pan n-American Petroleum and
Transport Company and its subsidi-
ary, the Pan American Petroleum
Company. were made defendants in
the action, and +. l.. Doheny, presi-
dent of the oil company, and Albert
b. Fall, former Secretary Of Interior,
arr charged in the bill with con-
spiracy to defraud the United States
''for the private gain of said Fall, and
OF defendants, for whom said Do
heny acted
Charges Bribe of 100000.
For the creation Of certain rights
in the defendants, Fall was to re-
ceive certain rewards from said Do
heny," the bill AYERS. adding that the
payment to Fall of 100000 by Do
heny in November. 1921, was that
certain reward Heretofore promised" ;"
In developing the conspiracy, the
complaint charges. Fall and Doheny
by "faIse, fraudulent and untrue
representations induced President
Harding in good faith to sign an ex-
Secretary DENLY of the Navy Depart
ment, 1t adds, was likewise induced to
proceed with the transaction. al
though the leasing project in its en-
tirety Is declared to be without au-
thority of law"
Proceeding under his understanding
with Doheny. the complaint continues.
Fall, ''purporting to act on behalf Of
the United States" invited proposals
for royalty oil accruing from the
California naval oil reserves. The
proposals, however, it adds. were so
drawn that no one but the defendant
American Petroleum and Trans
port Company could or would bid
thereon" the object being to permit
this corporation to make bid not in
the basis of a special, secret and nom
competitive contract with the United
States"
Declares Leases Weld.
Under this arrangement, it is
charged, leasing and other agreements
were entered into covering oil lands
rich in oil and gas in naval reserves
No. 1 and No secretly and privately
without competitive bidding.
The agreements. it is charged. were
obtained by bribery, the result OF
said unlawful conspiracy. were and
are a fraud upon the United states,
are illegal, null and void, and of no
force or validity, and should be de-
livered up to the United States to be
cancelled"
TRANSPORT Corporation is said to have
nroceeded with the requirement OF
ali the royalty oil due the United
States, while the subsidiary is said to
have continued drilling wells and ex-
tracing gas and oil from the leased
raserve area. The removal of the oil
;s declared to be a continuing damage
to the United States. -,
OF the arrangements. the bill asserts
that the transactions under SAID
agreements and said leases. and the
writing themselves, form. but single t.
hound together that the plaintiff (the
United States) cannot obtain full re
lief except by the joinder OF both
cnrnorate defendants, who are, in fact
and law, but one defendant.
o-rrD rrrpFEn