The Providence news. (Providence [R.I.]) 1891-1906, 1893-12-26
Petition Filed in Court to Prevent
Endorsement Of P. and 5. Bonds.
not SECURED BY FIRST MORTGAGE
II. III. Goddard and Other Prominent
Taxpa yers Protest Against the Pro-
posed Guaranty and Set Forth Num-
erous Reasons.

The long expected outbreak OF city tax
payers against the proposed endorsement
by the city OF the bonds OF the Pow
dence and Springfield Railroad company
occurred late today when petition was
submitted to the supreme court asking
for an Injunction to restrain the mayor
from signing the guaranty. The text OF
the petition is in substance this:
To the Honorable Appellate Division Of the su-
preme Court. ,,,,
Robert II. /. Goddard, Robert l. Gammeli, VIII
liam Gammell, George W. X. Matterson ana
Henry Pearce all Of the city OF Providence in
said county OF Providence, state OF
r. l. and William Goddard OF Warwick In the
county OF Kent and Elizabeth A. Oammell OF the
city OF Newport in said state, suing Tor themselves
and all other taxpayers OF said city OF
Providence bring this bill OF COM
nlaint against the city OF Providence, Will
lam X Potter Daniel n. Ballou, Clinton ID.
srllew, william p Vaughn and John W. Angel, all
Of said city OF Providence, and George III. Utter OF
Westerly in said state, defendants ana bhereuPoh
complain and say
First-That each OF the petitioners Is possessed OF
ratabIe real estate and property in the city oil
Providence and is a tax payer therein.
Third-That the Providence aud springneld RAN
roud company was incorporated by the general as
sembly of said state and is equipped and in actual
operation.
Fourth-that the general assembly on February
2t. 1851. authorized the company 10 It's pohus
10 an amount not 20 exceed Si,ooo,Ooo, and
20 execute q trust mortgage deed to
n trustee or trustees conveying all its
franchise, equipment and real and personal estate
and what il may acquire In future TO secure pay
rnent OF these bonds. Authority was also given TO
the city OF Providence 20 endorse or guarantee tue
payment Of the principal and interest OF
the bonds according to terms TO an amount
not to exceed $i0oo,ooO upon the execution OF the
trust mortgage aforesaid and upon the same being
endorsed by the New York and New England Rail-
road company making the enforcement OF the city
eecond TO the railroad company and II was also re-
quired that give validity TO said guaranty OF the
CITY said bonds should be countersigned by the
secretary OF state.
Fifth. That the Providence & Springfield COM
pany, acting under the pretended authority OF the
faid act has erected trust mort
gage OF its railroad, and franchises
Loan a Trust Co. OF New York dated June
l. 1892 and that under said mortgage
bonds secured to the amount OF sI5o,OOO
have been issued by the road and certified by the
Farmers Loan and Trust company, as trustee and
the orators believe that the bonds have been nego-
tiated and are in the hands of persons unknown
sixth-That the road prior to the execution OF
the mortgage OF February "a and prior to the is
suance of the bonds leased TO the New York
and New England for 80 years.
seventh-ThatS prior to the execution OF the
mortgage the New England road executed O mort
gage TO its bonds for $4,000 000 and another
for Sb,OOoOOO ana third Tor szoVVVV, covering all
its property.
Eighth-That the city council of Providence passed
an ordinance authorizing the mayor with advice
20 guarantee the bonds tor S75o,0o0 and that the
ordinance requires the bonds to be secured
by first mortgage on the real estate
Of the company in Rhode Island and Massa-
chusetts, whereas, the petitioners alege that no
part OF the road is I'm Massachusetts and the mort
gage does not cover any part OF the road in Con-
neticut.
rLot tt.a patft haya ofa atah
against signing of the guaranty TO no avail.
Tenth.-That the act Of the general assembly is
unconstitutional
Eleyenth-That all the bonds referred TO In the
second section OF the act have been paid and cam
ceIled and that the guaranty OF the bonds tor $3.50
600 Is absolutely without consideration
Twclth--That said mortgage does not constitute
first mortgage.
Thrtecnth--That Endorsement would involve the
city in endless litigation.
Therefore 1t is asked that the city OF Providence
be rest aimed from endorsing guaranteeing the
payment of principal and interest Of the bonds Of
the Providence and Springfield road
and that the mayor be enjoined
from signing tho guaranty of the city and that the
defendants be enjoined from advising the guaranty
OF the mayor OF the bonds and that the secretary OF
state be enioined from countersigning the same
To this end a writ OF injunction is asked from
the supreme court preventing the
steps contemplated as named above and that
subpoena issued commanding the defendants TO
appear before tho court and answer all these
premises and 10 abide by the ruling OF the court
a temporary injunction Is also asked covering all
the points above enumerated.