The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-01-05
LONG SESSION OF COURT.
witness Smith, of Red Clay Orchard
Company, on the Stand.

witness Smith, of Red Clay Orchard
Company, on the Stand.
Judge feathers, of Room 2, Superior
court Is anxious to wind up the Red Clay
orchard Company litigation this week, and
win view to expediting matters, held
court until II o'clock last night James H.
Smith, the treasurer of the company. was
on the witness stand all day yesterday and
last night and when the court adjourned
was ready to drop from exhaustion. Smith
is being sued by the stockholders who paid
IN their money and received no returns The
case presents a number of amusing features
and last night the jurors were chuckling
quietly over the manner in which Attorney
Rockford cross-examined the witness. This
is the third week of the trial Every dav
since the trial began Smiths wife has been
at his side in the courtroom assisting him
and his lawyers in the case. The devoted
woman, looking wan and tired-eyed.
watched her husband anxiously last night
as the lawyers piled him with pertinent
questions
Treasurer Smith in his cross-examination
related how the Red Clay Orchard Company
was to be operated. Smith, together with
w. II. Cross, who was arrested last week
Tor embezzlement, and George Rumpf, a
citizen of the State of Georgia, were the
promoters. Smith said that he and Cross
and Rumpf formed a plan by which lot
of land was to be purchased in Georgia.
Rumpf was to buy the land in his own name
for $500. The Red Clay Orchard Company
was then to be formed in this city and
Rumpf to come here and offer to sell
the land with proper improvements on it for
$4,000. The company was to pay one-third
cash ana for the remainder tirst-mortgage
n h- nd
formed, the land was contracted for and
Smith and Cross were made directors. Smith
became treasurer and proceeded to begin
the sale OF stock in order that the one
third cash due on the purchase might be
PAID. Cross was elected secretary and Will
liam Jones' who bought 81 500 worth of
stock, was made president. The enterprise
did not seem to be a success and number
OF the stockholders finally Joined with Jones
IN suit against Smith to recover the money
they had PAID out. Smith, in his cross-eX-
animation, asserted that he paid out good
deal of the money for necessary expenses.
lie had never had a final settlement with
Rumpf, who had constituted him as his
trustee to apply the proceeds from stock on
the land debt. Smith told Attorney Roch-
ford that at a number of the meetings of the
directors a vote of thanks was rendered to
President Jones.
"Of course, they did; Jones was paying
the freight remarked the attorney sar-
sally, and Smith could not conceal a smile.
The witness testified that the consideration
for a good deal of the stock was "anticpa-
ton" He meant by this that people con-
tracted for stock but did not take it. The
officers anticipated" that they would take
the stock at some future time and pay for
IT, The witness admitted that at one meet
ing of the board of directors he made
report in which he stated that the total
aggregated about $1,000. He said this was
not all money, but part of it was "anticipa-
ton"
The witness was asked about the sale of
some stock to Sadie T.. Davidson, a nurse.
Smith recalled that this woman bought
about $50 worth of stock. She did not pay
money for all of it, Smith said part of
the stock was issued to her in consideration
for services she had rendered in the family
of Secretary Cross. The company received
no benefit from this, as Cross never paid the
amount.