The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1909-05-29
IECT0RS must
PRODUCE BOOKS
oovsrnment to Ask That United
Copper Directors Be Sent to
Jail II They Refuse.

NEW YORK, May 29.-It will not
~ necessary for the United States
government to call upon District At
torney Jerome for aid in securing the
books OF the United Copper Co. whica
are being withheld by Fritz Augustus
Heinxe.
The governments TO-DAY decided 1t
would require the directors to produce
+ The books OF ask that they be sent TO
JAIL II they fail. The directors have
the right To the books OF the corpora
ton under the sfate laws OF New
York, and the governments attorneys
have found ample precedent for re-
Quiring that the directors bring ac-
tion In the state courts TO secure the
missing books.
The federal courts have taken the
stand I'm such cases heretofore that
hey are not concerned as 10 how the
Dooks are secured. but that the direc-
tors OF any corporation can be sent TO
Jail for failure to produce the books
OF their corporation liz court. Ii 10
stated today that the directors will
be SO told by Judge Lacombe when
they are called into court next Tues
day afternoon.
A similar situation arose during the
prosecution of the Fibre and Manila
association year and half ago The
books OF the corporations which we're
alleged to be In paper pool were
turned over to the indicted man and
the directors informed the court that
they could not secure them. The
4se<{ 90 har IN ri
ines in the state courts and they re-
ported that they still could not sc.
cure the books. The federal court
then ordered the directors sent To Jail
and the proceedings In the lower court
rapidisy.
The government does not believe
that the books or the missing papers
are outside New York city. While
there 10 no way OF reaching them di-
rectly. without granting to Heinze
+ this immunity they allege he is look
ing for. they are confident that an in
vestigation by the directors would .e-
veal the whereabouts of the missing
books within a very few hours.
Furthermore. United States District
! Attorney Wise is of the opinion that
tue mutilhtlOu Vi TIE UOOhs VI d CUT
poration Is a federal as we'll as a stote
offense and IL is planned to reach
Heinze in this way. If II is thought
necessary.
II developed today that the pages
OF the missing leoger showed the nc
counts of Otto ana f. Augustus Heinze
and District Attorney Wise alleges
contained the very information want
ed by the government to prove that
Heinxe loaned money TO himself and
his associates for the purpose OF stock
manipulation.
s When deputies from the United
States district attorneys Office were
going over the books at the Offices Of
the United Cope: Co., they made
copies OF all the entries. The cash
book, which was examined first. show
ed entries tc the accounts of these
three men. A representative OF
Heinze sat at the elbow OF the assist
ant district attorney and noted that
these entries from the cash book were
copied bx the government investiga-
tors. When they looked for the pages
OF the ledger to winch these accounts
had been posted. they had been torn
out, the federal authorities allege. TIE
government thinks II improbable that
the records of the United Copper Co..
which is capitalized for $4,000. 900,
have been permanently destroyed or
thrown away.