5T2 US Telegraph Stamp, California State Telegraph Company, 1870

California State Telegraph Company Incorporated June 17, 1854 as the California Telegraph Com­pany and constructed a line from Nevada through Grass Valley to Auburn. Extended to run from San Francisco to Marysville via San Jose and Stockton. Later absorbed Northern Telegraph Co. and thus extended to Eureka. It was incorporated as the Califor­nia State Telegraph Company on April 6, 1861. At the time of its lease to the Western Union on May 16, 1867 the California State consisted of the following companies which had been previously absorbed: Alta California Telegraph Co., Atlantic and Pacific States Tele­graph Co., National Telegraph Co., Northern California Tele­graph Co., Overland Telegraph Co., Placerville and Humboldt Telegraph Co., Tuolumne Telegraph Co. Stamps were issued in booklets, six to a pane.

Telegraph stamps were issued by the individual companies for use on their own telegrams, and can usually be divided into three classes: Free franking privileges issued to various railroad, newspaper and express company officials, etc., whose companies were large users of the lines; those issued at part cost to the lesser officials of the same type companies; and those bearing values which were usually sold to the general public. Occasionally, some of the companies granted the franking privilege to stockholders and minor State (not Federal) officials. Most Telegraph Stamps were issued in booklet form and will be found with one or more straight edges.