By the spring of 1861, the company had expanded its service area south to Los Angeles, north to Yreka, and east to Fort Churchill by absorbing the other telegraph companies in California (partly through enforcement of its right to the Morse telegraph patent).
On May 3, 1852, the California State Legislature passed an act to grant an exclusive franchise for the construction and operation of a telegraph line between San Francisco and Marysville.
This special charter was granted to Oliver C. Allen and Clark Burnham who formed the California Telegraph Company, which began construction on the line that fall.
Circuit Court issued an injunction preventing the Alta company from using technology based on the Morse patent.
[6][14] During the 1850s, other telegraph companies had been organized to provide service to different parts of California and into neighboring Utah Territory.
[15] The State company re-incorporated in April 1861, with their articles of incorporation now reflecting their larger service area.
[19] Originally, the company planned to build from Shasta to Yreka by way of the Sacramento River, but the route was changed to run via Weaverville, Trinity Center and Scott Valley.
[31] The line was completed to Genoa on November 29, 1858,[32] to Carson City in August 1859[33] and terminated at Fort Churchill in October 1860.
[38] Then in May 1867, the State company ceased operating with the public and its lines became part of Western Union's Pacific Division.