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The first toy trains were made of lead and had no moving parts. Some had wheels which turned, but these needed to be pushed or pulled. Some of the early 19th-century push toy rails were made from tinplate, such as the big, durable, stylized locomotive toys from the U.S., which were painted red and gold and decorated with hearts and flowers. model trains nz

Around 1875, technological improvements in materials and manufacturing enabled tin to be stamped, cut, rolled, and lithographed faster than previously.
Toy trains were revolutionized when Märklin, a German firm that specialized in doll house accessories, sought to create an equivalent toy for boys in which a continuous revenue stream could be guaranteed by selling add-on accessories for decades after the initial purchase. In addition to boxed sets containing a train and monitor, Märklin offered extra track, rolling stock, and buildings sold separately, creating the predecessor to the modern model train layout featuring buildings and scenery in addition to an operating train.

Electric trains adopted, with the first appearing in 1897, produced from the U.S. company Carlisle & Finch. As residential use of power became more prevalent from 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 direction, to emit a whistling noise, to smoke, to remotely couple and uncouple cars and even load and unload freight. Toy trains by the first half of the 20th century were frequently made of lithographed tin; afterwards trains were often made mostly 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, especially teenaged boys. It was during the 1950s that the modern emphasis on realism in model railroading started to catch on.
Consumer interest in trains as toys waned in the late 1950s, but has undergone 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 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 in the 1950s into the 1970s). However, as a result of their high cost, one is more likely to find an HO scale or N scale train set at a toy store than an O scale collection.

Many modern electrical toy trains comprise sophisticated electronics which emit digitized sound effects and allow the operator to safely and easily run several remote control trains on one loop of course. In recent decades, many toy train operators will operate a train with a TV camera in the front of the engine and hooked up to a screen, such as computer monitor. This will show an image, similar to that of a genuine (smaller size) railroad.

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