To my knowledge, Carl Heinichen didn't make police holsters. If anyone has one, please post photos, as I've never seen one.
So I'm going to guess it's a military "WaA142" holster.
Nothing really rare about it. It's a very common well known maker. The date is early, and the 1935 date is considered the "rarest date" for luger holsters. However, that just means it's the least produced date. That doesn't necessarily make it "rare" IMHO.
As for the stitching, it depends on how good/bad it is? Photos would help out a lot.
If it's not bad, I'd personally leave it alone. If it's about to fall apart, then yes, definitely send it to Jerry to have it properly repaired.
Matt