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American Flyer was formed in 1907 by William Coleman, a Chicago
hardware manufacturer and William Hafner, a mechanical toy maker.
American Flyer produced clockwork O Gauge steam trains, which were
less expensive than comparable competitor's products. They experimented
with the use of lithography in the low-price end of the market.
In 1914, William Hafner left the company to inaugurate his own
windup train business. Shortly thereafter, the first electric American
Flyer was introduced. Starting in O gauge, the American Flyer later
followed suit with Lionel and Ives in Wide gauge production. (Coleman
disallowed the term "standard" to be used.) Although the
company offered trains at all price levels, it was stereotyped with
an economy line image, which placed it at a disadvantage amongst
its competitors.
In 1938, A.C.Gilbert, of "Erector," "Mysto-Magic,"
and home appliance fame, bought the company and moved it to New
Haven, Connecticut. There he manufactured both O and HO gauge trains
until WWII material shortages halted all nonessential production.
The American Flyer introduced the S gauge line in 1946. Though
it had a faithful following for these 3/16" scale models, which
were attractive and well made, it could not compete against with
giant Lionel. The O gauge trains took prevalence, over the incompatible
S gauge trains. After almost 20 years of unsuccessful attempts to
redirect the toy train industry in his direction, the company went
out of business. In 1966, Lionel acquired the rights to the American
Flyer name.
In 1979, the American Flyer S gauge line was re-established as
a supplement to its regular O gauge business. Lionel (now Lionel
L.L.C.) is still producing a limited line of these trains.
By the mid-1960s, two major competitors were taken over by Lionel
- American Flyer and Ives. Louis Marx was Lionel's only remaining
major toy train competitor. Unstable demands of toy trains could
possibly number the days of either Louis Marx or Lionel Corporation
as a toy train manufacturer.
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