San Diego, Old Town, & Pacific Beach R. R. v. Pacific Beach Co.

This is an action upon two promissory notes made by defendant to plaintiff—one for fifteen thousand dollars, and the other for fifteen hundred dollars, the latter being for interest due upon said first-named note. Judgment went for plaintiff, from which, and from an order denying a new trial, defendant appeals.

Each of the parties is a corporation. The respondent owns and operates a railroad from a certain point in the city of San Diego to another point in said city, about ten miles distant, known as Pacific Beach; and it is the only railroad running to the latter point. The appellant is a real estate company owning a large tract of land at said Pacific Beach, and engaged in subdivid *57 ing, improving, and selling said land by lots and blocks. In July, 1888, the two corporations entered into a written contract, by which respondent covenanted that, in consideration of certain sums of money to be paid it by appellant, it would operate its road between said points for two years; that during said time it would run at least four trains daily at such times as appellant should direct, the appellant to have the right to change its directions; that it would charge for passenger fare not…