The area known as California was first claimed for Spain in 1542 by Juan Rodriguez Cabrillo when San Diego Bay was discovered. The recorded history of California did not begin until May 14, 1769, when a small land party of Spanish soldiers and Indians reached San Diego . In 1847 California became a U.S. territory when Mexico surrendered it to John C. Frémont. James W. Marshall discovered gold at Sutter's Mill, on Jan. 24, 1848, starting the California Gold Rush and bringing settlers to the state in large numbers. By 1964, California had surpassed New York to become the most populous state.