The Nevada County Traction Company began as an idea of its primary promoter: John Martin. He was the President of the Marysville Gas and Electric Company, and also had control over the power production of six California cities.[3] Beginning in May of 1901 the railroad ties and rails had been ordered,[4] and construction began a month later on June 6, 1901. On that date a groundbreaking ceremony took place, with the general manager of the railroad: G.H. Fairchild, promising that the railroad would be completed by September 9, 1901.[5] After the railroad was completed there were rumors that the railroad would expand to the Bay Area, considering the relationship between the railroad's directors and their ownership of Gas and Electric companies throughout the state; These hopes however were never realized.[6] The railroad would operate for over a decade before it was purchased alongside its competitor the Nevada County Narrow Gauge Railroad, by the California Midland Railroad, which was a subsidiary of the San Francisco and Northwestern Railway.[7] Despite its purchase, the railroad continued to operate normally for several more years until 1923, when the railroad applied to the state railroad commission and asked for permission to abandon some tracks in Grass Valley.[8] A snowstorm in early 1924 halted service and it was never restarted.[8][9][10] In their application to the state railroad commission to convert operations to buses, the company cited increased automobile usage in the area as suppressing the demand for electricity necessary to run trains.[11]