Torchwood's origins date back to an incident involving the Tenth Doctor, Rose Tyler and Queen Victoria in the mid-19th century. At Torchwood House in Scotland, a monastic group called the brethren stored a werewolf, which menanced the countryside, and the Queen. With the monarch's assistance, the Doctor and Rose killed the werewolf. Victoria knighted them for their service, then banished them from the kingdom, declaring the Doctor in particular a threat to the Empire. Nowaware of the reality of alien/supernatural life forms, Victoria ordered an organisation be created to protect the British Empire from the Doctor and threats such as the werewolf. She named the organisation the Torchwood Institute, after the location of the werewolf encounter. She issued a royal decree establishing the Institute on 31st December, 1879.
In 1889, agents Eliza Cooper and Robert Lewis attempted to capture the the Tenth Doctor when they realised he had been stranded in London. They came across H. G. Wells, and interrogated him about the Doctor. Wells led them to the TARDIS, which disappeared, apparently leaving the Doctor behind for them to arrest. The man was found not to be the Doctor when he was dissected.
After discovering a spacetime Rift in Cardiff, Queen Victoria founded a third branch of Torchwood (after the first and second in London and Scotland), Torchwood Three. In 1899 Cardiff, Jack Harkness was recruited by two of this branch's operatives, Alice Guppy and Emily Holroyd as a freelance agent of the Institute. His first mission was to apprehend an intelligent blowfish alien; he succeeded, but was greatly disturbed when Guppy summarily executed the creature before his eyes. He continued to work for Torchwood largely against his will, having been told by a fortune-telling tarot card reader that he would have to wait more than a century before seeing the Doctor again. Meanwhile, he needed money to live. He continued to work for the organisation over the decades that followed, although he remained disturbed by the Institute's callous disregard for alien life forms. At some point, Victoria also established Torchwood India to collect all things alien in the British Raj.
No battle written.
The Torchwood Team won because they were far more experianced than the ARC. They also work together much better than the ARC team which helped them when it came to squad and squad combat.