The first one has a chance of $1/30$, not $1/29$, as there are 30 pieces of paper in the box (if there were only 29 pieces in the box, it would obviously not be fair, as the last one would never get the cross: the other 29 classmates would already have removed all the pieces).
Obviously, if one classmate is chosen at random, he should have a chance of $1/30$ to be the chosen one, therefore it's fair to him.
Now after he has drawn the paper and found no cross (and assuming he didn't put it back into the box— another way to make it unfair), there are only 29 candidates left. Therefore it is obvious that if everyone of them has to have a fair chance, now for each of them the probability to be the chosen one is to be $1/29$. And indeed, that's the chance that the next one taking a piece from the box has, as there are only 29 pieces of paper left.
Note that this is a conditional probability (on the condition that the first one didn't get the cross). To calculate the total probability, you have to multiply the conditional probability with the probability of the condition. That condition is that the first one did not get a cross, and the probability of that condition is $29/30$ (since with probability $1/30$ he did get the cross). So the total probability that the second one gets selected is
$$\frac{29}{30}\cdot\frac{1}{29} = \frac{1}{30}$$
as it should be. So everything is still fair.
Now it isn't hard to check that it remains fair also for the remaining classmates, as at any time there are exactly as many pieces of paper left in the box as there are classmates that didn't yet draw one.
Edit:
From your comments on other answers I gather that you don't understand why the probability for the first one is $1/30$ and not $1/29$. Well, I guess you are simply confusing the probability with the odds.
The probability tells you how often the event will happen if you repeat the experiment many times. That is, if the event (in this case, the first classmate getting the "X") has probability $p$, and you repeat the whole procedure $N$ times, then the expected number of times the even happens is $pN$. In this case, there are 30 different pieces of paper, and on average he will draw each one equally often. Therefore at one of 30 draws he will get the cross, and thus the probability is $1/30$
The odds on the other hand give the relation of the event happening versus the event not happening. I this case, there's one piece with a cross, and 29 without, each of which he will draw with the same probability, and therefore his odds to draw the cross are $1:29$.
Note the different way I wrote this, as this is not really a division (although it is close to it). In particular, if the box only contained the piece with the cross, his odds would be $1:0$; this is not a division by zero error, but a completely valid odds. On the other hand, the probability to draw the cross is $1/1 = 1$. This is a division, and a well-defined one. The value $1$ means he will draw the cross every time ($pN = N$), and that's indeed what will happen if the only piece of paper in the box is the one with the cross.