Sacramento Valley Railroad (1852–1877)

The Sacramento Valley Railroad (SVRR) was incorporated on August 4, 1852, the first transit railroad company incorporated in the U.S. State of California. Construction did not begin until February 1855 because of financial and right of way issues, and its first train operated on February 22, 1856. Although the oldest working railroad in the state was the Arcata and Mad River Railroad, first operational in December 15, 1854, the Sacramento Valley Railroad was the West's pioneering incorporated railroad, forerunner to the Central Pacific.

As was typical when railroads were built, when the Sacramento Valley Railroad was completed, transit time and rates both dropped significantly. For example, the San Francisco to San Jose fare for passengers fell from $32 by stagecoach (with the trip taking nine hours) to only $2.50 by rail (with the trip taking three and a half hours). More significantly, freight rates dropped dramatically also, stimulating all forms of economic activity in the region.