One of its first postwar trains was the No. 671, a black behemoth with a 6-8-6 wheel configuration. Radio receivers in each car of a No. 671 set were designed to trigger coupling and uncoupling of cars. It was supposed to be a truly electronic train set, but it didn’t work very well.
To increase the play value in layouts, in 1947 Lionel introduced its Automatic Milk Car, which featured a little man that popped out of the car to push milk cans onto an awaiting platform. Other vintage Lionel accessories that are today quite collectible are the water tower, coal elevator, magnetic crane, and operating watchman.
Lionel’s No. 726 Berkshire followed in 1948, as did the 20-wheel GG-1. A replica of the Pennsylvania train of the same name, with styling by industrial designer Raymond Loewy, Lionel’s GG-1 could draw power from either the third rail in the tracks or lines strung overhead.
These were impressive trains, but all would be eclipsed by the F3 diesels Lionel introduced that same busy year. Until now, kids had only East Coast and Midwestern trains to play with, but the Santa Fe F3 changed all that. With its bright red nose, classic yellow detailing, and sleek aluminum body, the Santa Fe became the Lionel to play with and collect. Other F3s in this iconic O scale line are the Milwaukee Road, Illinois Central, Wabash, Southern, and, later, the B&O.
To power its new diesel line, in 1948 Lionel introduced the ZW transformer, which was strong enough (275 watts) to move four model trains at once. And as the decade ended and the 1950s began, Lionel trumpeted a new featured, Magne-Traction, which used magnets in its engines to increase pulling power, speed, and control.
The 1950s began as a decade for Lionel to reap what it had sowed. By 1953 it was the largest toy manufacturer in the world, and every year, it seemed, brought some new, even-more-wonderful machine. The innovations were not just limited to the new diesels, either. 1957 saw the debut of the No. 746 Norfolk & Western, a powerful looking streamline steamer with gorgeous lines and a handsome, rounded nose.
But in the 1950s, air travel was replacing train travel, and a new network of interstate freeways was replacing the nation’s railroad system. Thus, Lionel struggled to create products that would keep it relevant.
Predictably, a pink train for girls in 1957 bombed, although vintage examples of this so-called Lady Lionel are highly sought by collectors today. Even more prized are the companion baby-blue trains made for boys, which were so scorned they were not even released. To capitalize on the infamous reputations of these two disasters, Lionel reissued both as collectibles in 1991.
No better were the trains made to help fight the Cold War in the late 1950s and early 1960s. Some featured flat cars that carried ominous chambers labeled "Radioactive Waste." Other cars were configured to fire missiles at enemies or to explode and break apart on contact.
By the end of the 1950s, with the Cowen family selling its shares to a group of investors that included former Joseph McCarthy lawyer Roy Cohn, once-great Lionel was on thin ice. In the 1960s, it dabbled in science kits and introduced lesser versions of earlier achievements, but by 1967, Lionel would file for bankruptcy. It would do so again in 2004 and 2008.


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