Los Angeles and San Gabriel Valley Railroad was founded in the general laws of California on Sept. 5, 1883, by James F. Crank with the goal of bring a rail line to Pasadena from downtown Los Angeles. Los Angeles and San Gabriel Valley Railroad was sold and consolidated on May 20, 1887 into the California Central Railway. In 1889 this was consolidated into Southern California Railway Company. On Jan. 17, 1906 Southern California Railway was sold to the Atchison, Topeka and Santa Fe Railway and called the Pasadena Subdivision.
Los Angeles and San Gabriel Valley Railroad sold stock to get funds to build the new rail line, Lucky Baldwin purchased a large share of stocks, knowing the rail line would open markets for goods from his Rancho Santa Anita. James F. Crank's Los Angeles and San Gabriel Valley Railroad had a slow start. The first rail track was laid in Pasadena in 1884, but the first contractor went bankrupt by the end of 1884. In January 1885, a new contractor started working on the line and the second rail bridge that was needed. Test train ran on Sept. 14 and on September 16, 1885 a grand celebration was held in Pasadena for the completion of the Los Angeles and San Gabriel Valley Railroad from Downtown LA to Lamanda Park in East Pasadena. The rail line went from downtown Los Angeles through the Arroyo Seco to Pasadena. The railroad train crossed the Arroyo Seco just north of Garvanza in Highland Park. The first Pasadena Rail Station was built in 1887 was wooden structure, it was later replaced in 1934. The rail line started a boom in Pasadena, the Hotel Green was started by Edward C. Webster in 1887 and finished in 1888 by George Gill Green. The hotel patrons arrived by train at the adjacent Pasadena station. This grand hotel in Old Pasadena is still on South Raymond Avenue.