Later he became associated with General Beale in the cattle and sheep business in the northern part of the state and in the Tejon area.

With his purchase of the Rancho for cattle and sheep business, Baker moved to Los Angeles.

The Bakers owned the 30,000-acre (120 km2) property two years, and in 1874 sold a three quarter interest in the land to the Comstock millionaire John Percival Jones.

[1] Jones and Baker decided to subdivide part of their joint holdings, and in 1875 they created the town of Santa Monica.

Jones and Baker formed the Santa Monica Land and Water Company, one of the principal developers of western Los Angeles.