In 1797, the pueblo was moved from its original location, near the present-day intersection of Guadalupe Parkway and Taylor Street, to a location in what is now Downtown San Jose. San Jose came under Mexican rule in 1821 after Mexico broke with the Spanish crown. It then became part of the United States, after it capitulated in 1846 and California was annexed.
On March 27, 1850, San Jose became the second incorporated city in the state (after Sacramento), with Josiah Belden its first mayor. The town was the state's first capital, as well as host of the first and second sessions (1850–1851) of the California Legislature. Today the Circle of Palms Plaza in downtown is the historical marker for the first state capital. The city was a station on the Butterfield Overland Mail route.
Though not impacted as severely as San Francisco, San Jose suffered damage from the 1906 San Francisco earthquake. Over 100 people died at the Agnews Asylum (later Agnews State Hospital) after its walls and roof collapsed, and the San Jose High School's three-story stone-and-brick building was also destroyed. The period during World War II was a tumultuous time. Japanese Americans primarily from Japan town were sent to internment camps, including the future mayor, Norman Mineta. Following the Los Angeles zoot suit riots, anti-Mexican violence took place during the summer of 1943. In 1940, the Census Bureau reported San Jose's population as 98.5% white. The entire region prepared for the beginning of the war.
As World War II started, the city's economy shifted from agriculture (the Del Monte cannery was the largest employer) to industrial manufacturing with the contracting of the Food Machinery Corporation (later known as FMC Corporation) by the United States War Department to build 1000 Landing Vehicle Tracked. After World War II, FMC
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