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The earliest toy trains were made of lead and had no moving parts. Some had wheels that flipped, but these had to be pulled or pushed. Some of the early 19th-century drive toy trains were made from tinplate, like the large, durable, stylized locomotive toys from the U.S., which were painted gold and red and decorated with hearts and flowers. model trains in my area

Around 1875, technological advancements in materials and manufacturing enabled tin to be stamped, cut, wrapped, and lithographed faster than ever before.
Toy trains were altered when Märklina German company that specialized in doll house accessories, sought to make an equivalent toy for boys in which a continuous revenue stream could be guaranteed by selling add-on accessories for years after the first purchase. Along with boxed sets comprising a train and track, Märklin offered additional track, rolling stock, and buildings sold separately, creating the predecessor to the modern model train layout featuring buildings and scenery in addition to a working train.

Electric trains followed, with the first appearing in 1897, made from the U.S. firm Carlisle & Finch. As home use of electricity became more prevalent in the early 20th century, electrical trains gained popularity and as time went on, these electrical trains grew in sophistication, gaining lighting, the ability to change management, to emit a whistling sound, to smoke, to couple and uncouple cars and even load and unload cargo. Toy trains by the first half of the 20th century were frequently made of lithographed tin; afterwards trains were often made mainly of plastic.
Prior to the 1950s, there was little distinction between toy trains and model railroads–model railroads were toys by definition. Pull toys and wind-up trains were marketed by kids, while electrical trains were marketed towards teens, particularly teenaged boys.
Consumer interest in trains as toys waned in the late 1950s, but has experienced resurgence since the late 1990s due in large part to the popularity of Thomas the Tank Engine.

Now, S gauge and O gauge railroads are still considered toy trains even by their adherents and are often accessorized with semi-scale model buildings by Plasticville or even K-Line (who owns the rights to the Plasticville-like buildings produced by Marx from the 1950s to the 1970s). However, due to their high price, one is more likely to find an HO scale or N scale train set in a toy store than a O scale set.

Many modern electric toy trains comprise sophisticated electronic equipment that emit digitized sound effects and permit the operator to safely and easily run multiple remote control trains on one loop of track. In the last few decades, many toy rail operators may operate a train using a TV camera in the front part of the motor and hooked up to a screen, such as computer monitor. This will show an image, similar to that of a real (smaller size) railroad.

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