Joshua Lionel Cowen began his toy train enterprise in late 1900. Lionel's domination of the toy train marketplace stemmed from Cowen's personality and skills. Most of the major innovations came from companies that were already manufacturing toy trains at the time of Cowen's entry into the world of toy trains. Cowen was a skilled engineer, and possessed excellent marketing abilities. One of the major marketing tools utilized by Lionel was the color catalogs they produced each year.
Cowen came to toy trains almost by accident. At the age of 22, he had perfected a small electric motor, but had not found a practical use for it. The story is that he was standing outside a shop window when he came up with the idea of a powered gondola to carry sale items to attract customers. Cowen rented a shop, and began manufacturing his gondolas in early 1901. People soon became far more interested in the gondolas than the items they carried.
Early Lionel products ran on two-rail track. The early items included a small electric engine, passenger cars, and a very popular trolley car. Some accessories were also offered.
In 1906, Lionel introduced three-rail track with 2-1/8 inches between the rails. This new track was called "standard gauge" by Cowen, and this was the start of Lionel's dominance of the toy train industry. Other manufacturers soon offered this type of track under their own names.
By the end of World War One, the major manufacturers of toy trains were Ives, American Flyer, and Lionel. All three manufactured Standard Gauge as well as O gauge trains.
It was at this time that Cowen's superior marketing abilities made their impact. Cowen is responsible for linking toy trains to the Christmas season.
It was Cowen's idea to include toy trains as part of creche displays. Later, incredible showroom and department store displays would leave every young boy wanting toy trains for Christmas, and toy trains remain popular Christmas gifts today.
By the 1920's Lionel was the king of the toy train world. It was during this period that Lionel produced some of their most beautiful trains. The locomotives and rolling stock were highly detailed. Ives and Flyer were also producing wonderful trains. This era is referred to as the "Golden Age of Toy Trains". Financial troubles forced the sale of Ives in 1928, and it was purchased by Lionel and American Flyer. The partnership was short lived, and in 1930 Lionel became the sole owner of Ives. Ives continued as a separate corporation, but was managed by Lionel. The merging of these companies resulted in the production of some very unusual trains under the Ives name. These interesting pieces are some of the most wanted items today.
The Eras
Lionel train production is divided into three major eras: prewar, postwar, and modern era.
Prewar. This refers to the standard gauge trains produced in the early days. This era ended in 1942, when train production was suspended so the factory could be used to produce items needed for the war effort.
Postwar.This era began in 1945 and extended until production ceased in 1969. A catalog was printed for the 1945 Christmas season, offering one train set. Production resumed in 1946. Lionel's best years followed the war. It was at this time that O gauge trains reached peak popularity. By the late 1950's, toy trains began to compete with other, more inexpensive toys, and sales began to drop off. In 1959, Cowen sold his interest in the company to his nephew. Sales continued to decline and production stopped in 1969.
Modern.In 1970, the Lionel name and tooling was purchased by General Mills, and became part of its Model Products Corporation (MPC). MPC did have some success with Lionel despite a disastrous move of production to Mexico in 1983. Production returned to Michigan in 1985, and the name and tooling was sold to Richard Kughn, a businessman and Lionel collector. Under Mr. Kughn, the company became known as Lionel Trains, Incorporated. Mr. Kughn reestablished the original reputation for quality.
Richard Kughn
Prewar Catalogs
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