Kniese

This is an appeal by the plaintiff from the judgment which was under consideration in the appeal by the defendant in Kniese v. Fairfax Incline R. R. Co., 96 Cal. App. 427 [ 274 Pac. 382 ], All of the stock of the defendant corporation was formerly owned by Rivers Bros., a corporation. While so owned the railroad was operated at a loss. The loss was paid by Rivers Bros, and the deficits were carried on the books of the defendant corporation as deficits and as such were reported to the Railroad Commission. On August 15, 1921, the defendant owned a block at Fairfax which was known as a park. It also owned an incline railroad. On the date last mentioned Rivers Bros, sold to G. F. C. Seidel all of the stock in the defendant corporation. The sale was made under an executory contract by which the purchaser received the stock and at once redelivered the same as security for the payments thereafter to fall due. There is no evidence in the record of more than one transfer. That transfer was the sale of the corporate stock which represented the properties owned by the defendant corporation. The vendee operated the road from the date he purchased it until August 16, 1923. "While so operating…