The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-12-30
AS HE LEFT THE STAND
WITNESS CROSS, OF TERRE HAUTE,
ARRESTED FOR EMBEZzLEAIENT.
The Red Clay Orchard Company Af-
fair Developing Some UnpIeas-
ant OdOrS.

Something of a sensation was created in
Room 2, Superior Court, yesterday morning,
when w TT. Cross a witness in the Red
Clay Orchard Company litigation, was ar
rested on the charge of embezzlement as he
was leaving the witness stand. The case in
which Cross was a witness has been on trial
for three weeks. 1t is the suit of stockhold-
ers of the Red Clay Orchard Company
against James Fl. Smith, president of the
company to recover money alleged to have
been paid to Smith for shares of stock and
converted to his own use. w. H. Cross,
who lives in Terre Haute, was formerly Sec
rotary of the company, and was called to
testify as to his dealings with James II.
Smith and George Rumpf, one of the pro-
moters of the Red Clay Orchard scheme.
Rumpf lives in Georgia and is not attending
the trial.
In his testimony Cross admitted that he
sold a half share o. stock to Rev. S. w.
Pollard, who was formerly pastor of the
Pilgrim Congregational Church, in West In
dianapolis The pastor now lives at Potts
vile, Ia. He bought the half share of stock
in the Red Clay Orchard Company just be-
fore he moved away from West 1ndianapo-
lis. He sent the company check for $50 in
payment and Cross took charge of it. He
needed money and kept the amount for his
own use, after consulting an attorney. 1t
appears that Cross had some arrangement
with Smith and Rumpf by which they were
all to secure certain dividends ana commits
sions. The attorney whom Cross consulted
told him that under this arrangement he
could keep the money Afterward Smith
asked Cross about the $50 received from the
minister, and the secretary admitted that
he had
that Smith advised him to resign as secre-
tary which he did at a meeting of the
board of directors. Cross says he explained
to the directors all about his transaction
with Mr.. Pollard, and they decided he was
entitled to the money in view of the serv-
ices he had rendered
Before Cross left the witness stand yes
terday morning warrant had been sworn
out for his arrest by one OF the stockhold-
erS of the Red Clay Orchard Company. Two
patrolmen were waiting when he concluded
his testimony, and he was taken over to the
police station and locked up on the charge
of embezzlement. Before he left the court
Edward Little, one of the lawyers for the
plaintiffs. Little demanded that Cross give
up small memorandum book which he had
in his pocket. The book was produced,
Cross turning down the corners of two or
three Of the pages. Mr.. Little says that
Cross asked him not to look at these pages
as they contained figures of a private ma
ture. The attorneys say this book contains
the private account which Cross kept with
Smith and Rumpf in relation to their deal
ings as promoters of the Red Clay Orchard
Company. 1t is intimated that other sensa-
tional features are likely to develop in the
case at any time. Cross still occupied
cell at the police station last night
Yesterday afternoon James H. Smith, the
defendant in the case. was put on the stand
to give testimony in his own behalf. 1t is
alleged by the attorneys prosecuting the
suit that Smith, Cross and Rumpf formed
a combination of their own by which they
hoped to reap some handsome profits.