It was organized in July 1852,[1] and incorporated in January 1854 [2] and began constructing its first line that same year, stretching from Sacramento to Marysville and extending up into the foothills of the adjacent Sierra Nevada mountains.
From Benicia, a branch line was extended to Vallejo and the US Navy yard at Mare Island.
This suit was not resolved until 1863, when the Supreme Court of California upheld the legality of the franchise.
[10] From their beginnings, both the Alta and State companies used telegraphic instruments based on Samuel Morse's patents without proper authorization, although the State company eventually purchased the exclusive right to use Morse's patent in California.
Circuit Court issued an injunction preventing the Alta company from using technology based on the Morse patent.