Ives Manufacturing Company
| Company type | Private |
|---|---|
| Industry | Toy manufacturing |
| Founded | 1868 in Plymouth, Connecticut, United States |
| Founder | Edward Ives |
| Defunct | 1932 |
| Fate | Acquired by Lionel Corporation and American Flyer in 1928; brand discontinued in 1933 |
| Headquarters | Plymouth, Connecticut , United States |
Area served | United States |
Key people | Edward Ives (founder), Harry Ives (president and chairman), Charles R. Johnson (president) |
| Products | Toy trains, clockwork toys, tinplate trains, electric trains, toy boats, construction toys (Struktiron) |
| Parent | Lionel Corporation and American Flyer (from 1928) |
The Ives Manufacturing Company, an American toy producer active from 1868 until 1932, was the leading manufacturer of toy trains in the United States between 1910 and 1924, when it was overtaken in sales by the Lionel Corporation.
Early history
Established in Plymouth, Connecticut by businessman Edward Ives, who descended from Plymouth colony governor William Bradford, the company originally crafted paper dolls with movable joints alongside various toys, including clockwork-driven dolls and animals. By the 1880s, under the guidance of designers Jerome Secor, Nathan Warner, and Arthur Hotchkiss, Ives had become a prominent manufacturer of clockwork toys.
The firm gradually shifted its emphasis to tin or cast iron toy trains, initially powered by clockwork and later by electricity. A catastrophic fire on December 22, 1900, destroyed the main factory and tooling; however, insurance funds enabled Ives to rebuild with updated machinery. Beginning in 1901, Ives produced the first "O" gauge trains made in the U.S., operating on fabricated sectional tracks powered by clockwork mechanisms. That year’s sales reached $2,600 (equivalent to approximately $94,000 today). Early die stamping work was subcontracted to Haberlin and Hayes Bridgeport Tool & Die.
Although electric trains were available from competitors, Ives continued focusing on clockwork models due to limited household electrical access. Its primary rivals initially consisted of German imports rather than domestic companies.
Ives targeted twelve-year-old boys as their key market segment by involving them as managers of a fictional Ives Railway Lines, fostering brand loyalty. This approach helped establish Ives as the dominant U.S. toy train producer until Lionel surpassed it in 1924.
William R. Haberlin
William R. Haberlin played a crucial role in creating all dies and tooling for Ives’ original O-gauge clockwork train line launched in 1901. Alongside T.F. Hayes, Haberlin co-owned the Hayes & Haberlin Machine Company in Bridgeport, Connecticut, which developed the first American machinery for producing tinplate track. Initially employing drop-hammers to manufacture rails and ties, they progressed to punch press dies capable of producing up to 30,000 rails daily by 1902. Haberlin departed from Ives in 1907 to join Thomas Edison before founding the American Miniature Railway Company that same year, which produced a train line similar to Ives until ceasing operations in 1912.
Electric trains
To compete with brands like American Flyer, Ives introduced its inaugural electric trains in 1910 aimed at both O gauge and 1 gauge markets. Despite these efforts, Ives struggled against Lionel’s earlier entry into electric trains and growing competition. In 1913, Ives expanded its product range with Struktiron, a construction toy comparable to Meccano and Erector Set; however, it failed commercially and was discontinued by 1917.
World War I brought mixed effects: the ban on German imports expanded Ives’ market share but geographic limitations restricted access to materials and government contracts compared to Lionel and American Flyer. After the war, protective tariffs favored domestic manufacturers like Ives by limiting foreign competition—particularly in the premium segment.
In an attempt to reduce seasonal sales volatility, Harry Ives launched toy boats in 1917 powered by clockwork engines adapted from O gauge locomotives. Nonetheless, design flaws and quality issues hindered their success; production persisted until 1928 despite these challenges.
A fierce rivalry with Lionel founder Joshua Lionel Cowen escalated through lawsuits and aggressive advertising beginning in 1915. Lionel’s campaigns questioned the durability of Ives products while promoting their own as superior value offerings. Although Ives provided more detailed lithographed cars compared to Lionel’s simpler enamel paint designs, it failed to counter Lionel’s assertive marketing effectively. As a result, Lionel surpassed Ives in sales by 1924.
In 1921, Ives ceased production of slow-selling 1 gauge trains to concentrate on Wide Gauge models (similar to Lionel's Standard Gauge). The growing Wide Gauge market encouraged innovation among manufacturers.
The company introduced the "R-unit" in 1924—a locomotive engine featuring forward, reverse, and neutral settings with continuous headlight operation—an advancement that preceded a similar feature from Lionel by two years. While this high-end innovation boosted sales, it was insufficient for reclaiming market leadership.
By 1926, Lionel’s revenue had doubled that of Ives, which was experiencing financial losses worsened by selling entry-level models at a loss. Although this pricing strategy benefited customers seeking affordable quality products, it weakened Ives’ profitability and competitive standing.
Slogan
The Ives Manufacturing Company promoted their products with the tagline: "Ives Toys Make Happy Boys".
Bankruptcy
In 1927, Harry Ives transitioned from his role as president to chairman, appointing Charles R. Johnson as the new president in an attempt to revitalize the struggling company. Despite these efforts, financial difficulties continued and by 1928, Ives' largest creditor initiated legal action. The company declared bankruptcy, listing debts totaling $188,303.25, even though anticipated Christmas sales were projected to reach $245,000. A plan for a private sale was ultimately rejected.
On July 31, 1928, Lionel and American Flyer jointly purchased Ives for $73,250—a sum considered low due to liens attached to the company's assets. They maintained Ives as a joint venture, keeping Johnson as president and Harry Ives as chairman. Harry Ives left the company in September 1929 and passed away within seven years thereafter.
Following the acquisition, toy boats were discontinued and much of Ives' train lineup was replaced with rebranded products from Lionel or American Flyer. New models incorporated components sourced from the parent firms rather than using original Ives tooling, which was either leased or possibly no longer viable due to wear. The manufacturing processes of Lionel and American Flyer were less labor-intensive, providing cost savings compared to Ives' more detailed but pricier designs.
Among notable releases was the 1929 Ives 1122 locomotive—recognized as the first near-scale replica of a real locomotive—based on the Baltimore and Ohio Railroad President Washington Class 4-6-2 engine, despite featuring a 4-4-2 wheel arrangement.
After the takeover, the Ives product range exhibited a combination of characteristics drawn from all three companies involved.
Lionel Manufactured Production
In 1930, Lionel acquired American Flyer's interest in Ives and shut down the Connecticut manufacturing plant, transferring production to its New Jersey facility. The Ives brand name remained active until 1932 before being rebranded as Lionel-Ives in 1933 for entry-level train sets; this branding was soon discontinued altogether. While sporadic reissues appeared later, they did not occur regularly.
Joshua Lionel Cowen later asserted that all Ives molds were destroyed; nonetheless, the legacy of Ives persisted. Lionel continued producing budget-friendly train sets running on O-gauge track with a 27-inch diameter circle—a standard inherited from Ives—and included some freight cars originally designed by Ives, such as the Lionel 1680 tanker car, in their catalogs through World War II.
A particularly important innovation was the e-unit introduced by Ives in 1924, which Lionel adapted starting in 1933 and utilized for over five decades. This technological advancement likely influenced Lionel’s decision to acquire Ives, highlighting its strategic importance for product development and maintaining competitive edge.
External links
- December 1918 advertisement for Ives in Popular Science - Ives Toys Make Happy Boys, Popular Science monthly, December 1918, page 111, Scanned by Google Books: https://books.google.com/books?id=EikDAAAAMBAJ&pg=PA111
- The Ives Train Society
- Toy train manufacturers
- Model railroad manufacturers
- Defunct toy manufacturers
- Defunct manufacturing companies based in Connecticut
- Plymouth, Connecticut
- 1868 establishments in Connecticut
- 1932 disestablishments in New Jersey
- Manufacturing companies established in 1868
- Manufacturing companies disestablished in 1932
- Historic American Engineering Record in Connecticut
- Companies that filed for Chapter 11 bankruptcy in 1928
- 1928 mergers and acquisitions
- Model manufacturers of the United States
- Toy companies established in the 19th century
- Companies of the United States by year of establishment
- American companies established in 1868