Historic Treasure of the Week - December 1, 1991
By David M. Buchanan
Vigo County Historical Society
Toy trains ride into hearts of children
Memories of Christmas gifts are almost as varied as snowflakes in a winter storm. As years pass, gifts are, for the most part, forgotten. But there are usually a few that stand out, gifts that delight, gifts that are treasured, even if its just in wonderful memories.
The sight of a model railroad is one such Christmas gift that many children, both boys and girls, remember. The layouts can be as simple as a single circle of track with an engine and a couple of cars going round and round. Or, layouts may be more complex, with a village, roads, mountains, bridges, and several tracks running different trains. Simple or complex, model railroads seem to draw and delight everyone.
The Ives Company began in 1868 as a toy manufacturer that became known for its ingenuity and imagination in mechanical toys, including model trains. In 1900, the company plant was destroyed by fire. Lost in the inferno were the dies and patterns for cast iron and tin toys. But the catastrophe, while seemingly devastating, actually provided opportunity.
The Ives Company was insured and it began manufacturing again with new dies, new equipment and a wonderful opportunity to try something fresh. The company chose mechanical clockwork trains that would run on tracks. The tracks were sectional and could be laid out by children or adults.
Other companies produced mechanical toy trains, including Lionel, and Ives faced even more competition in 1907 when American Flyer was formed. American Flyers clockwork trains were less expensive than comparable Ives trains, but the increased competition of the various manufacturers probably let to the Ives production of electrically powered toy trains. Lionel had been offering such trains for several years, and many toy manufacturers in Europe, especially Germany, were offering a wide variety of model railroads.
World War I greatly affected toy manufacturers. Materials became had to get because so much was diverted for use in the war. But one positive (from the American point of view) was the decline of imported toys from Germany. In 1910 more than $7 1/2 million of toys were imported. By 1918, imports were down to a little more than $1 million. This reduction of imported toys allowed Ives, Lionel and other American producers to expand their own markets, even with the shortage of materials. It also increased the sense of competition among American manufacturers.
Lionel became very aggressive in its advertising campaigns, often claiming its products to be quite superior to Ives (and others) equipment. Ives did not respond in kind.
Lionels aggressiveness also led to more innovations in its equipment, more appealing designs and an improved sense of weight in its equipment.
By the mid-1920s, Ives was losing money and searching for new capital. Harry Ives, son of the founder, relinquished the presidency and became chairman of the board. Charles Johnson became president. New investment was received but problems continued and in 1928 Ives largest creditor sued for payment. Ives sought protection under the bankruptcy law with reported liabilities of $188,303.25.
Johnson requested a private sale to Risdon Manufacturing Co., but the bankruptcy trustee rejected that idea and pushed for a public sale. The Ives Company was sold through the courts on July 31, 1928. The successful bid of $73,250 was made by a representative of the Lionel and American Flyer companies.
By 1930, Lionel had purchased all of the Ives shares from American Flyer and the Ives Company became a part of Lionel.
The Ives Electric Locomotive 3236R featured as the historical treasure of the week probably was made in 1928. The three cars pulled by the locomotive were made by the Lionel Company sometime between 1925 and 1928.
The cars were, at some point, painted red to match the red of the Ives engine. Two of the passenger cars retain their celluloid stained glass window. The tops of the cars are removable so tiny people or packages could be placed on metal benches inside.
The train set was a gift to the Vigo County Historical Society in 1990 from Robert J. Jones. It is one of many trains on display in December at the museum. Electric model trains will be running in the museum today for "Train Sunday."
The Historical Museum of the Wabash Valley, 1411 S. Sixth St., is open from 1 to 4 p.m. Tuesday through Sunday.