MTH Electric Trains
| Company type | Private |
|---|---|
| Industry | Toy trains, Model railroads |
| Founded | 1980 |
| Founder | Mike Wolf |
| Headquarters | Columbia, Maryland , United States |
Area served | United States |
Key people | Mike Wolf (founder, former CEO) |
| Products | Toy trains, model railroads, licensed model trains |
| Owner | Private |
Number of employees | 57 (2004) (2004) |
| Website | mthtrains |
MTH Electric Trains is a privately owned American manufacturer specializing in toy trains and model railroads, headquartered in Columbia, Maryland. It is also widely recognized as Mike's Train House.
Early career
Mike Wolf, the company's founder, started assembling and retailing trains at the age of 12 in 1973 for Williams Electric Trains, a company known for replicating vintage Lionel models. By 1980, Wolf was running a mail-order operation selling Williams trains from his family home. After Williams ceased production of Lionel Standard and O gauge replicas, Wolf acquired the necessary tooling to continue manufacturing these models. Despite rumors, neither Wolf nor Jerry Williams confirmed that the original Lionel tooling was involved.
From 1983 to 1987, MTH independently sold reproduction trains. In 1987, when Lionel contacted MTH’s South Korean subcontractor Samhongsa about producing Standard Gauge trains, Samhongsa directed Lionel to Wolf. This led to MTH becoming a subcontractor for Lionel, enabling MTH’s reproductions to be branded as Lionel products and distributed through Lionel’s sales network. By the early 1990s, MTH had become the second-largest mail-order dealer for Lionel nationwide.
The collaboration ended in April 1993 when MTH introduced its own O scale General Electric Dash 8 locomotive after Lionel declined to manufacture it. Upon learning of this development, Lionel CEO Richard Kughn terminated MTH’s dealership. MTH responded by filing an antitrust lawsuit against Lionel, which was settled out of court in 1995. Following this, MTH broadened its offerings to include former Lionel reproductions, replicas from other manufacturers, and original designs. By 1998, MTH had overtaken Lionel in O gauge market share—approximately $60 million compared to $50 million—and employed about 135 staff at its peak.
MTH produced licensed models of New York City Subway cars for the MTA as well as Chicago 'L' cars. After licensing rights were transferred, Lionel currently holds the NYC Subway O scale license while Walthers controls the HO scale rights. This change was partly influenced by MTH’s production of sets featuring graffiti artwork.
The competitive dynamic between MTH and Lionel reflects a longstanding rivalry within the industry; although their train cars are compatible mechanically, each company uses proprietary electronic control systems. MTH developed the Digital Command System (DCS), which can control both MTH locomotives and those equipped with Lionel’s Trainmaster Command Control (TMCC) as well as the widely adopted Digital Command Control (DCC) standard.
In December 1999, three former employees of competing firm Korea Brass were convicted of industrial espionage after stealing design data from MTH to manufacture models for Lionel. In April 2000, MTH initiated legal action against Lionel for industrial espionage, submitting electronic design files as evidence. A Detroit jury awarded MTH $40.8 million in June 2004; however, following an appeal by Lionel, this verdict was overturned in December 2006 due to procedural errors during trial and a new trial was ordered.
Later career
MTH became involved in legal conflicts with Quantum Sound Industries concerning electronic sound technology used in model locomotives and faced criticism for patenting aspects of the open DCC standard.
By June 2004, MTH employed approximately 57 people and generated estimated annual revenues between $30 million and $40 million. As a private entity, precise financial details remain confidential. Following Lionel’s reorganization in 2007, MTH’s revenue was estimated at around $30 million, positioning it as the second-largest manufacturer in the O gauge market by share.
Although some Lionel collectors and hobbyists criticized MTH for aggressive marketing strategies and legal disputes, the company is credited with revitalizing a previously stagnant hobby and contributing to price reductions.
In December 2005, Union Pacific Railroad filed suit against MTH alleging unauthorized use of its logos along with those of acquired railroads; the complaint sought damages and destruction of infringing stock. The dispute was amicably resolved in November 2006 with an agreement granting MTH a perpetual royalty-free license to use Union Pacific trademarks—an outcome beneficial to both the company and the broader model railroading community.
By late 2007, longstanding patent and trade secret disputes between Lionel and MTH were settled confidentially. The agreement included a one-time payment to MTH following Lionel’s emergence from bankruptcy.
In 2009, a collaboration commenced between Lionel LLC and MTH under the Lionel Corporation brand umbrella. This partnership allowed MTH to produce authentic Lionel tinplate trains featuring official graphics combined with MTH’s electronic components, enhancing product authenticity and consumer appeal.
In June 2020, CEO Mike Wolf announced his retirement. Although initially planning closure by May 2021, MTH instead relocated operations to Elkridge, Maryland, continuing production of RailKing O Gauge and Premier Line O Scale models utilizing existing tooling.
On January 31, 2021, ScaleTrains.com acquired tooling assets from MTH related to HO and S scale products, thereby expanding their own product lineup.
The licensing arrangement permitting production of Lionel-branded tinplate trains concluded in 2019 due to unfavorable renewal terms proposed by Lionel, limiting future cooperation on tinplate offerings.