Weekly Arizona journal-miner., 1905-05-17
Blanchard Accused of Embezzlement
(From Sundays Daily.)

SNACAhA anu OhC bI iiC tors of the American Copper Company | properties, is under indictment for embezzlement, and arrived late Friday night to face the charge.
 Blanchard is specifically accused of misappropriating $1,OOO, but the evi- denee before the grand jury purports to show that the sum is as high as | S34,000. He went to the courtroom | yesterday morning to surrender him self, and was there served with the warrant. He was arraigned before Judge Sloan, but upOn the request of his attorney, R. E. Morrison, was giv- en until Monday morning in which to plead, with bail fixed at $1 ,O0O. Jos. Trenholm and J. w. Wilson qualified as his bondsmen. and he was released from custody.
 The case promises to be one of the most sensational ones in the mining history of Yavapai county, as Blan- ehard claims that the indictment is part of conspiracy to defraud the stockholders out of their holdings, and deprive him of his interest III the company. On the other hand. A. $. Kimberly, treasurer of the company, declares that Blanchard by the man ipulation of checks, has robbed the company of sums aggregating S34.O0O
 There were a number of witnesses besides Kimberly before the grand jury. They were W. R. Williams, the storekeeper; MT. Dodson, the hook keeper; J. J. Murry, and M. B. Hazel tine, cashier of the Bank of Arizona.
 Several hundred checks were intro duced, which were drawn in favor of Williams, who said that he endorsed them on the back at the request of Blanchard, ald then returned them to him. These checks were then turned in to the bank and deposited in fav- or of the account of the Colonial h. vestment Company, a concern of which Blanchard is president.
 In explaining the manner in which these checks reverted to his private ae- count, MT. Blanchard stated last night that they either represented money with which he had eashed pay cheeks of the miners and other employees, or were for money that he had advanced to the company at various times to meet the monthly pay roll apd other expenses.
 The president of the company is J. K. Burnham, who is president of two wholesale houses in Kansas City and Detroit. and is a wealthy man. Blan- chard says that he gave Burnham 30.- 900 share of stock to become identified with the organization, but that he has in reality put up very little money. Nor have the other directors, which include F. A. Faxon. vice-president, and a wholesale druggist, and A. s. Kimberly, who was in the printing business before Blanchard made him treasurer, so he says, at a salary of 5000 a year., In fact, Blanchard claims that he owns the controlling in terest in the company, and that with his own stock, and that he held by proxy, he voted four million shares of stock at the last election.
 "This effort to force the company into bankruptcy" said he "is part of scheme to get control of 100000 shares. The directors have inspected my accounts, and approved them each year, and the vouchers are there for every cent that was expended. "
 ''I am not short in my accounts with the American Copper Company. All funds sent to me were properly expend- ed. came here from the East as soon as heard they had filed charges against me. think the whole fight | against me by the minority faction is simply conspiracy to defraud the or j iginal owners of the mine out of their stock''
 It is also charged that Blanchard | went East about a year ago with a that the directors drew upon their pri- vate bank accounts to meet these claims; and that Blanchard diverted i part of this money to his own private account Blanchard denies that | $4O.OOO was raised, and says that Pre- sident Burnham loaned the company $2O.OOO upon stock furnished by col | lateral by Blanchard himself. Of the | money that was thrs raised at that ! time, MT. Blanchard claims that he ! was given only sl2.500 to pay debts. and he specified the various obligations l which he paid with the funds thus en- trusted to him.
 He further says that instead of him owing the company, the truth of it is ! that it owes him about sS.OOO. whicir