Sunday, May 27, 2007

BNSF Beer Spill

BNSF had an accident in a Denver rail yard that spliied a lot of beer. Here is a link to local TV station news artile. Click on the link, read the short article, and then click on View Slide Show for 17 pictures of the mess.

Frothy mess after beer spills in rail accident
http://www.9news.com/news/article.aspx?storyid=70643

I wonder how the haz-mat team dealt with that.

Saturday, May 26, 2007

NS Business Train in NJ

This picture is of the NS Office Car Special Train near Bloomsbury, NJ on Tuesday 5/22/07.

Thursday, May 24, 2007

Latest on Lionel bankrupcy and MTH vs. Lionel lawsuits

The following is from the OGR Forum (O Guage Railroading). It was written by a lawyer who has been following these matters.

Friends,

May 22, 2007-Lionel and MTH's attorneys were back in a New York bankruptcy court this morning. Lionel CEO Jerry Calabrese was present in court. MTH's Mike Wolf was not.

Lionel's lawyer, Adam Harris quickly informed Judge Lifland that Lionel filed their bankruptcy reorganization plan with the court yesterday. Among the items in the plan is payment in full of all unsecured claims with interest. The plan is necessary in order for Lionel to begin their exit from bankruptcy. Lionel has been in bankruptcy since November 15, 2004, a period of over 2 1/2years.

Mr. Harris continued by stating the reorganization plan can be confirmed by the court upon the happening of two conditions, 1)resolution of MTH's separate trade secrets and $17.5 million dollar patent infringement lawsuits and 2)obtaining exit financing to make the payments proposed in the plan. Mr. Harris noted obtaining the financing would be "easy" once the trade secrets and patent infringement cases are concluded.

To resolve the trade secrets and patent infringement cases, Mr. Harris once again requested the court conduct a damages estimation hearing, with the trade secrets case being tried first, or concurrently with the patent infringement case.

The court did not set a trial date for the damages estimation hearing. Mr. Harris stated he would file a motion with the court next week which would address some logistical concerns, and the court could then schedule a trial date. Judge Lifland agreed with Mr. Harris's request.

Lastly, Mr. Harris informed the court that after extensive mediation, the two rival model train makers were unable to settle either the trade secrets or patent infringement case.

MTH's attorney Alec Ostrow then addressed the court. He objected to the court scheduling a damages estimation hearing. Judge lifland, becoming fustrated and annoyed, interrupted and stated, "its time get this case moving, no more dillydallying. Its been mired in mud for a long period." Twice more, Mr. Ostrow persisted, and objected to a damages estimation hearing. Judge Lifland again cut off Mr. Ostrow, stating, "This isn't a debate." Mr. Ostrow then stated he would set forth his objections in papers in response to Lionel's motion.

In addition to today, Mr. Ostrow has objected several times at past court conferences to the court scheduling a damages estimation hearing. His reason for doing this is, the appeals court, in its December 14, 2006 decision in the trade secrets case, remanded it to the trial court. That would be the Federal District Court for the Eastern District of Michigan. This is the court where a jury awarded MTH $40 million dollars on June 7, 2004. Strategically, based on past experience, MTH's attorneys have decided they would fare better in front of a Detroit jury, than a New York bankrutpcy judge who is of the opinion that Lionel's bankruptcy has taken a long time. Of course, Lionel's attorneys want to try the case in front of Judge Lifland, who is already very familar with the details of the trade secrets and patent infringement cases. According to Judge Lifland, the Bankruptcy Code gives him the power to pull the case from the District Court, and try it, in the interests of expediting Lionel's exit from bankruptcy. This essentially takes away MTH's right to a jury trial.

In this and in past articles, I have used the legal term "damages estimation hearing." That term is a little misleading. On its face, the term implies the court will 1) estimate damages only and not possible liability and 2)possibly estimate a numerical range, not a specfic number. In speaking with Mr. Harris following today's court proceedings, he explained that Judge Lifland will try both the trade secrets and patent infringement cases as if they were regular trials, determining first, any POSSIBLE liability (responsibility) on Lionel's part, and upon the finding of any wrongdoing 2)determining the exact of amount of damages MTH would be entitled to. For example, in the trade secrets case, MTH must establish Lionel or its employees were involved in the theft of the locomotive blueprints or design plans, and then establish they were damaged by the theft, such as thorough, lost sales.

According to Mr. Harris, a damages estimation hearing, could take place this summer.

I will continue to keep all updated as necessary.

Erol Gurcan

Tuesday, May 22, 2007

BNSF First: A 10,000-foot Intermodal Train

Received the following via email.

BNSF ran what is believed to be the U.S. rail industry's first 10,000-foot intermodal train from Los Angeles to Logistics Park in Chicago earlier this week, reports Trains.com.

The 10,009-foot (including power) international intermodal stack train departed Los Angeles on May 13 and arrived at the Chicago intermodal terminal May 15. The train ran on BNSF's Transcon, on which BNSF has been steadily increasing the amount of double track in recent years. Because almost the entire 2,200-mile route has now been double tracked, siding length was not an issue. The train used distributed power: four locomotives in the front and two in the back.

BNSF is studying the use of longer trains to maximize the amount of containers that it can carry while minimizing the number of trains it takes to move the containers, which increases efficiency and takes advantage of the aggressive program of double tracking BNSF has been conducting on the Los Angeles to Chicago route for several years.

Thursday, May 17, 2007

Golden Spike Day

Sorry, this is about a week late. May 10th was Golden Spike Day. This comemorates the day in 1869 when the golden spike was driven at Promontory Summit, Utah Territory, thus joining East and West by rail. You can read more about it at the following National Park Service web site.

http://www.nps.gov:80/gosp/

Tuesday, May 15, 2007

Go Fly a Kite

Yes, we have kites too. Besides all our model railroad stuff, we also carry plastic model kits for airplanes, ships, automobiles, and military vehicles. And we even have some RC (radio control) items. If we don’t have something you want, we can order it for you. Please stop in and check us out. And buy a kite, get outdoors, and enjoy the great weather we are having.

Monday, May 14, 2007

Saturday's sparse sightings...

(Train sightings on 5/5/07)

along the Lehigh Line were only two trains.

From what I was told, NS 212, 64J and 18N had already passed by prior to my arrival at Pattenburg, NJ. The trains I did see though made for a nice sight on this spring day.

NS 20R came through Pattenburg Tunnel around 8:55. Motive power would be NS 2752 (SD70M-2) and NS 9427 (C40-9W).

Shades of CR! NS 24Z would have PRR 8336 (C40-8W, ex-CR 6088) as the leader coupled to NS 7644 (ES40DC) around 9:11.



Both trains would be instructed to hold the siding down at CP 51 waiting for NS 21M.

Once 21M was clear, NS 20R would be through Three Bridges, NJ at 10:28 and NS 24Z would follow a little later at 10:40.



On this day, you won't get any complaints from me about the trains or weather...

Tuesday, May 08, 2007

More than the circus train could be seen...

(Train sightings on 4/30/07)

along the Lehigh Line near Manville on Monday morning. The sightings started early and were as follows:

NS 18N @ 6:45-red / silver BNSF 748 (C44-9W) and NS 2537 (SD70) would bring sixty-eight autoracks east in an early morning rain shower.

NS Intermodal, symbol unknown, @ 6:55 had two C40-9Ws, NS 9958 and NS 9878, for power.

CSX 916-30 @ 7:55-a/k/a, the circus train would have CSX 4715 (SD70MAC) and CSX 5010 (CW44-6) for power. The Red Unit's fifty-eight cars weighed in at 4,265 tons and measured 5,148 feet in length. It was making a 443 mile trip from Philadelphia, PA to Providence, RI. (see also the posting below with pictures of this train)

NS 24V would hold for the circus train to proceed before continuing its eastbound journey over CR's Shared Assets Lehigh Line. Motive power was two C40-9Ws, NS 9645 and NS 9322.

NS 21M-after holding the main for CSX 916 and NS 24V to pass on the siding, 21M continued its trip west. Motive power was NS 2632 (SD70M), NS 7552 (ES40DC), PRR 8385 (C40-8W, ex-CR 6173) and PRR 8310 (C40-8, ex-CR 6045). 21M's departure time wasn't recorded.

NS 212-had NS 9626 (C40-9W) and NS 2535 (SD70) bringing a mixture of autoracks and intermodals east.

CSX Q300 @ 9:00-would have CSX 7367 (C40-8W) and CSX 5435 (ES44DC) bring a short train of twenty-seven cars of mixed freight east.

NS 214 @ 9:17 would have four GP60s, NS 7150, NS 7101, NS 7120 and NS 7126 for its power consist.


NS 20G @ 10:10-was the morning's final train for me. Motive power would be NS 9796 (C40-9W) and UP 5106 (SD70M).

Nine trains in basically three hours, not a bad way to start off this Monday morning.

The Road to Providence, RI...

(Circus train sighting on 4/30/07)

for the Ringling Bothers Red Unit Circus Train started out in Philadelphia, headed north on the Trenton Line and is seen here crossing over on to CR's Shared Asset Lehigh Line at Port Reading Jct. near Manville NJ at 7:55. It is seen taking the passing siding as NS 21M was holding the main on this meet. Motive power for CSX 916-30 would be CSX 4715 (SD70MAC) and CSX 5010 (CW44-6) to bring the fifty-eight cars to Worcester, MA. The Red Unit would weigh in at 4,265 tons and was 5,148 feet long. Only two weeks earlier, the Red Unit would be delayed in departing NYC to travel to Philadelphia due to the nor'easter that dumped an estimated eight inches of rain causing extensive flooding in this area. Some of that debris from the flooding can still be seen stuck on the bridge.













Thursday, April 26, 2007

Not a morning to be wasted...

(Train sightings on 04/22/07)


After all I couldn't let Sunday's sunshine and pleasant temperatures go to waste now, could I? Headed out along the Lehigh Line with camera and scanner in hand to see what was running.Trackside out in Bloomsbury (NJ) saw the following trains pass by my vantage point:


8:20-NS 21M; In my opinion, this was a shorter than usual 21M when compared to previous 21M's. Power was NS 8345 (C40-8W, ex-CR 6103), NS 8851 (C40-9) and NS 8455 (C40-8W).


8:32-NS 24V; After holding on the tunnel's west side for 21M to pass, NS 2777 (SD70M-2) and NS 9463 (C40-9W) would bring this train of COFCs east.



9:25-NS 18G; Two C40-9Ws, NS 9760 and NS 9266, would bring eighty-five cars of mixed freight east.


10:20-NS 11J; Provided the nice surprise of the day. NS 9656 (C40-9W) and blue and yellow BNSF 8732 (GP60, ex-ATSF 4032) would bring 106 autoracks west. This power was the same power that brought NS 18N east on Saturday (4/21).

Not a bad way to spend this Sunday morning...

Monday, April 23, 2007

A morning of meets...

(Train sightings on 4/14/07)

A number of meets took place Saturday morning between the Lehigh Line's CP 62 and CP 67 in Pattenburg (NJ). Starting at 8 o'clock and falling into the heard but not seen category by me was the first meet at CP 64. NS 19G would hold the main while NS 20K and NS 212 went by on the passing siding.


With NS 214 (Atlanta, GA to Croxton, NJ) holding on Pattenburg Tunnel's west side, NS 23M (E-Rail, NJ to Los Angeles, CA), with NS 7545 (ES40DC) and NS 8590 (C39-8), would go west at 8:30.


Following behind 23M was NS 21M (North Bergen, NJ to Chicago, IL) with PRR 8412 (C40-8W, ex-CR 6218), PRR 6770 (SD60M, ex-CR 5513) and NS 9668 (C40-9W).



After 21M went west, at 9:17 NS 214 would be instructed to bring its train of "...just under 7,000 feet." and take the short siding. 214's power would consist of three B32-8s (NS 3527, NS 3553 and NS 3530) and GP60 NS 7146.


The reason for taking the siding was that NS 11J (Newark, NJ to Oak Wood, MI) was coming west with sixty-nine autoracks. It would pass by CP 64 with NS 2616 (SD70M) and NS 8819 (C40-9) at 9:30 with instructions "to take the long siding." Two more eastbounders would be coming through.


An unknown NS intermodal, possibly 24Z, would be first to come east. Motive power was NS 9721 (C40-9W) and NS 2701 (SD70M-2).


The second train would be NS 64J (Mingo Junction, OH to Kearny, NJ) bringing back empty municipal waste containers for refills. NS 9813 (C40-9W) and NS 8805 (C40-9) provided the power.


Not a bad morning for train watching to see how efficiently the dispatcher was moving these trains along.

Tuesday, April 17, 2007

A view from the bridge...

(Flooding on the NS Lehigh Valley line in New Jersey)

This is the scene looking east around 1:30 on Monday (4/16) from the Interstate 287 north bound bridge towards Bound Brook. The bridge on the left is the ex-LVRR bridge that is now designated as part of CR's Shared Assets Lehigh Line. The bridge on the right is the former Reading Bridge. Beneath those murkey waters lie two sets of tracks. Judging from the amount of debris and water covering the tracks, one can only speculate when this stretch of tracks will be operational.



Tuesday, April 10, 2007

Lehigh Line Saturday (3/31) sightings...

at Bloomsbury (NJ) were as follows:

NS 24Z-8:35; would have PRR 8340 (C40-8W, ex-CR 6097) and NS 2767 (SD70M-2) taken the Pattenburg siding for two westbounders.

NS 21M-8:55; had a trio of C40-9Ws for power. They were NS 9711, NS 9205 and NS 9376.

NS 19G-Time wasn't recorded as NS 9794 and NS 9834, two C40-9Ws, had some interesting cars in this 116 car general merchandise train. There was a odd couple (No, not Felix Unger and Oscar Madison) of a Guilford Maine Central boxcar coupled to a Pan Am boxcar. The 109th car was a SOO LINE boxcar with a faded "Colormark" marking. The next to the last car was a NW scale car.

NS 11J-9:45; would be instructed to take its ninety-seven autoracks onto the "...long siding for one eastbounder." 11J's power consisted of NS 2526 (SD70) and NS 9010 (C40-9W).

NS 18G-10:30; was moving ever so slowly as it came east. Motive power would be NS 8307 (C40-8, ex-CR 6035) and NS 2620 (SD70M).

Sorry about not including a shot or two with this report. Low battery power in the camera combined with cold temperatures left my digital camera DOA!

Thursday, April 05, 2007

Hot Box on NS in NJ

I put this news in the heard on the grapevine category because I got it at least third-hand.

Saturday afternoon, 3/31/07, the NS line from Allentown, PA to eastern NJ was all tied up when a stack train tripped a hot box detector at Neshanic Station. The conductor said that the train was over 2 miles long. NS had several crews "outlaw" due to this tie up. The train was 24V, a stack train from Harrisburg, PA to dockside in NJ. 24V ended up setting out the shop car at Royce, where it was in turn picked up later in the evening.

But 24V on Friday had a bad car too, which was set out on the hotbox siding at the tunnel.

All this news leaves me with several questions. How do they pick up these cars and where do they take them? How do they repair them? What happens to the cargo? And as these questions are answered, the answers could raise more questions. I guess this is what happens when you hear it on the grapevine.

Sunday, April 01, 2007

Before the clouds rolled in...

(Train sightings on 3/24/07)

managed to get trackside along the Lehigh Line in Manville (NJ) and Three Bridges on this Saturday (3/24). Here is what I saw during that time.

8:30-NS 23M @ Manville had NS 7114 (GP60) and NS 3528 (B32-8) for power. This very long intermodal seemed to go on forever. By my time estimation, it would take around four minutes to pass completely by.

8:45-NS 21M @ Manville would have NS 9519 (C40-9W), NS 6687 (SD60) and NS 6780 (SD60M) providing the power. This one could also be categorized as another long intermodal.

10:00-falling into the seen but unknown symbol category was a eastbound intermodal, possibly NS 214, that passed through Manville. Power was three NS diesels.

10:10-NS 64R @ Manville was finally given permission to head east over the Royce Runner to Port Reading Junction. Behind NS 9303 and NS 8912, two C40-9Ws, was a "Southern" boxcar followed by seventy-nine tank cars containing ethanol and then another "Southern" boxcar.



1:50-NS 64J @ Three Bridges had NS 9460 (C40-9W), BNSF 994 (C44-9W), PRR 3018 (GP40-2, ex-CR 3310) and NS 7600 (ES40DC) bringing back those empty garbage containers.



3:00-NS 24V @ Flemington Jct was still waiting on the siding for a possible recrew. It called a stop at CP 51 a little after 1 PM and was still waiting when I departed. Power was PRR 8442 (C40-8W, ex-CR 743) and BNSF 7616 (ES44DC).

Friday, March 23, 2007

The luck of the Irish...

(Train sightings on 3/17&18/07)

certainly wasn't with me on this St Patrick's Day weekend when I headed track side. On Saturday, after spending the whole morning shoveling the ice-encrusted snow that fell on NJ, I decided to head out towards Three Bridges to see if anything was running on the Lehigh Line.

Caught Black River & Western's crew shuffling cars around for Sunday's pickup by NS at the Three Bridges interchange. The engine they were using was BR&W 752 (GP9, ex-CLP 752, ex-BN 1879, ex-NP 256)).



From there it was on to Flemington Jct (CP 51) to see a crew less NS 18N sitting on the siding. Motive power was NS 9963 (C40-9W) and NS 6594 (SD60).

Under Sunday's sunny skies, I headed back out hoping to photograph some winter railroading scenes. From 8:15 until 10:58, not a single train was seen on the Lehigh Line. Had me wondering where NS's intermodals were?

The drought was broken when NS 18N was seen taking the siding at CP 64. Motive power would be NS 9150 (C40-9W) and NS 8569 (C39-8). It would hold there for a westbound that fell into the unseen but heard category. After that WB'er passed, 18N would pass by Stanton Station with its forty-three autoracks at 11:37 and take the siding at CP 51.



Deciding to munch on the buttered bagel I brought along while waiting, that also became a problem. The cold morning temperatures had frozen the buttered bagel halves together! A frozen bagel and no trains showed that the luck of the Irish certainly wasn't with me on this St Paddy's Day weekend.

Tuesday, March 20, 2007

"Potter" puts model trains back on track .....Yahoo story

Received the following Reuters story via email. Do not know the original date.
Also see our blog post of 3/6/07, and note that we carry both Lionel and MTH products year round, not just at Christmas.

NEW YORK (Reuters) - Sales of model trains are picking up steam again thanks to deals linking them to Harry Potter and The Polar Express movies, along with a new approach to marketing the old-fashioned toys Lionel, one of the big names in model trains in the 1950s, has watched as its business had to focus less on selling toys to kids than serving an older but much smaller hobbyist market.

Folk-rock singer Neil Young, 61, is so passionate about trains that he bought a fifth of the company in 1995. Now, the company is bringing trains back to young people, and sales are up 40 percent in the last two years.

Lionel signed deals to bring out "Harry Potter" and "The Polar Express" trains, and filled shelves at department stores such as Macy's and Target, instead of just hobby shops.

"We're a resurgent brand based on nostalgic appeal," said Jerry Calabrese, chief executive of Lionel.

Last Christmas, the company advertised toy trains as the ultimate gift by setting up displays at Macy's Santaland and Grand Central Terminal in New York. Forty percent of Lionel's sales of $70 million in 2006 came during the Christmas season.

This sort of advertising is as much geared to children as it is to parents who remember Christmas train displays when they were young, said Andy Edleman, vice president of marketing for MTH Electric Trains.

MTH sells its trains with promotional DVDs and catalogs that portray parents and children enjoying trains together.

"We almost make them feel guilty," Edleman said, before adding that "people would prefer family participation and nostalgia" to things like Game Boys and PlayStations.

Companies such as Lionel and MTH also showcase their products at events like the World's Greatest Hobby on Tour. The show has attracted roughly 290,000 attendees in 11 cities since it was established in December 2004, said Dave Swanson, chairman of the tour.

At the show, children can play with Thomas the Tank Engine toys and ride giant trains while parents can run locomotives using wireless handheld devices.

"Our company and others are trying to infuse trains with as much technology as possible," Edleman said.

For example, in most MTH starter sets, a single handheld throttle allows users to command multiple engines and tracks.

Users can control the amount of smoke coming out of a locomotive and track the number of scale miles (km) a train has traveled. There is downloadable software to program new sounds and features into trains.

KIDS DON'T WANT TO ASSEMBLE SETS

Mark Guiffre, 34, a member of the West Island Model Railroad Club in Long Island, N.Y., said that such technology had made model railroading better, partly because users can run trains and switch tracks just by punching a few buttons.

It's ideal for young people because they do not want to spend a lot of time assembling the train sets, said Brett Einhorn, 16, of West Babylon, N.Y.

"They just like to run them," he said.

The West Island club tries to bring in new members by holding several shows each November.

"Fathers bringing their kids to the club is the most important part of model railroading," Guiffre said.

Lionel's golden years lasted from the mid-1940s through the 1950s, according to "Toy Train Collecting and Operating," a book by train expert John Grams. Sales started dropping in the 1960s because of company mismanagement and the decline of trains as a mode of transportation. In 1969, Lionel found a steady market in baby boomer collectors who fell in love with trains as children. But these hobbyists aren't getting any younger.

"Our membership is getting about 10 months older on average per year," said Jeff Pape, 61, a member of the Columbia Gorge Model Railroad Club in Portland, Ore. "We're up against trends in culture. If you have a job, that job consumes you. There are less vacation hours, less ability to get a day off ."

Kelly Shaw of Classic Toy Train magazine estimates that the average age of the publication's readership is 59.

Dick Christianson, managing editor of Model Railroader magazine, said the resurgence in trains would probably start up a whole new, younger generation of model railroaders. One day they'll remember they had a train as a kid and say, 'Hey, I wonder if Mom has that in her attic somewhere'," he said.

Tuesday, March 13, 2007

Where is it?

This scene was photographed in NJ at a CP that no longer exists. The rail line still remains active to this day. With those being your clues, I ask "Where is it?"

Stop in the store to give us your answer. We would love to see you. If you cannot stop in, send us an email. Our address is blrrs@crisp.net



Thursday, March 08, 2007

A black and blue Sunday...

(Train sightings on 3/4/07)

along the Lehigh Line in Manville and Three Bridges. Every unit seen today had either a NS or ex-CR unit. Even CSX's Q300 had a ex-CR as a leader and NS 9294 for power. In time sequence, the trains seen were as follows:

7:51-NS 214 (Manville); NS 7141, NS 7136, NS 7147 and NS 7144 would take the Port Reading Secondary to its destination.

8:35-NS 11J (Manville); PRR 6718 (ex-CR 5578) and NS 9552 was in charge of ninety-nine autoracks, estimated length was 9,300 feet and weighing in around 5,000 tons (at least that what was mentioned over the radio. NS 9552 was the leader on Saturday's NS 18N.

9:35-NS 24V (Manville); not definte about this intermodal's symbol that had NS 2610 and NS 2727 for power.

10:00-NS 212 (Manville); NS 6685 and NS 9810 was the power consist for this train.

10:54-CSX Q300 (Manville); Thank goodness for having a scanner or else I might have mistaken this for an NS train. Power was NYC 8457 (ex-LMS 717) and NS 9294.




??:??-NS 20K (Three Bridges); Place this train in the heard but not seen category as I was in transit from Manville to Three Bridges when I heard it on the scanner calling signals at MP 45. [Chicago, IL to North Bergen, NJ]

11:08-NS 20W (Three Bridges); Yes, that is the symbol heard over the scanner as it passed by MP 45. Motive power on this intermodal was NS 2743 and NS 2766. [Los Angeles, CA to Croxton, NJ]

12:20-NS 18G (Three Bridges); had a PRR leader and second unit was an NS diesel. Sorry about not jotting the numbers as the pencil's point broke-DARN!

Tuesday, March 06, 2007

Engineering a comeback

The following is an article from a New Jersey newspaper, the Star-Ledger, about the Lionel company and its president, Jerry Calabrese.

Please note that we are a Lionel dealer, and we have Lionel products year round, not just at Christmas. We have track and switches, locomotives and cars, accessories and complete sets, and the all important Lionel catalog. Come in and check us out.

We also have products from other O scale manufactures such as MTH and Atlas.

Engineering a comeback
Jersey native is turning around venerable train maker Lionel

Tuesday, February 27, 2007
BY TOM JOHNSON Star-Ledger Staff

Jerry Calabrese inherited a train wreck of a company in October 2004 when he took control at Lionel, the more-than-century-old model train maker.

After losing a $41 million judgment in a trade-secrets dispute, the nation's biggest toy train manufacturer was propelled into bankruptcy-court protection.

Beyond the legal dispute, Calabrese, a New Jersey native and a former top marketing executive at Marvel Comics Group, faced an even more daunting problem. Lionel's business was primarily driven by a small, aging and shrinking customer base.

Even though train hobbyists are passionate enough about collecting to spend up to $1,400 a year, Lionel had done too little to attract younger people to one of the world's oldest hobbies in an era of sophisticated video games.

"A lot of people had no clue that Lionel was still being produced," says Louis Caponi, of Springfield, Pa. and president of the Lionel Collectors Club of America, an organization with about 10,000 members who are hard-core collectors of model trains. "It got to the point where Lionel was catering exclusively to the collector, and not the general public."

These days, Lionel appears to be back on track. Late last year, a federal appeals court threw out the verdict in the trade-secrets case. The toy-train maker also is making inroads in luring another generation of model-train enthusiasts.

Sales at the privately held company rose to $64 million last year, a 40 percent gain compared with two years ago, Calabrese says.

"We've made a lot of progress in the last couple of years," says Calabrese, who started out his career as a reporter and editor at the Daily Record in Morristown prior to moving into the business side of publishing. "We should be out of bankruptcy this year, and the business, itself, is doing better than it has done in easily the last 20 years."

Lionel is happily chugging along again by trying once again to become a pop-culture giant, not just selling to avid hobbyists, who spend as much as $2,000 for one of its more than 300 replica steam locomotives or engines.

"Hobby was everything," says the 58-year-old Montclair resident in an interview in Lionel's New York offices. He said hobbyists were 100 percent of the business when he was recruited to become chief executive by Wellspring Capital Management, an investment group that includes rock star Neil Young as a minority partner.

In the past year, Lionel began selling its trains, not just in the 1,200 specialty model train shops around the country, but at high-end retail outlets, such as F.A.O. Schwarz, Nieman Marcus, Fortunoff and Macy's. In fairly elaborate displays, the stores showcase low-end train sets, which sell for between $200 and $300.

"We haven't been in those outlets in 50 years," Calabrese says. "For the first time in a half a century, a kid could walk in and see a train running in a beautiful layout and get a sense of the magic of what this thing is."

Lionel is hoping some of those youngsters turn into avid collectors, some one like Calabrese's cousin Victor, who got his first train set back in 1958 and was hooked. "Victor probably owns 150 pieces of incredibly expensive equipment," he says.

It is a strategy that seems to be working, says Neil Besougloff, editor of Classic Toy Trains. "They're putting a lot of emphasis on selling train sets. They're finding new customers outside the realm of the traditional train hobbyist."

Calabrese's background in marketing and licensing, areas he grew to know well selling X-Men and Spider-Man at Marvel, have served him well at Lionel. The toymaker has done well winning licensing from popular children's movies, such as coming out with products linked to "The Polar Express," the Christmas movie starring Tom Hanks.

This year, Lionel will roll out a Harry Potter set, the Hogwarts Express.

The company also has benefited from technological advances in toymaking that have helped reignite interest among avid hobbyists. They now make engine replicas all the more exact and produce added train sets that are more accessible to first-time buyers because they are easier to assemble, Calabrese says.

When he was a kid, Calabrese jokes you had to be a "Mr. Fix-it to make a train set work. The breakthroughs in technology are such there is no reason to put people through what they used to have to go through 50 years ago. We are trying to be American Girl for boys. It is not just for hobbyists anymore," he says.

Lionel once had manufacturing operations in Irvington and Hillside, but its operations were moved to Chesterfield, Mich., when it was purchased by General Mills. Wellspring and Young, who holds patents on model train engines, bought the company in 1995.

Lionel is negotiating with the owners of the Prudential Center arena in Newark to possibly open a Lionel museum or exhibit as part of the Broad Street renovation going on there, Calabrese says, but nothing has been finalized.

"Lionel has enormous roots in Essex County. It employed thousands of people," says Calabrese, including his uncle who worked for the company. "It was like the Xbox of its day."

Today, Lionel outsources its manufacturing to Asia. Its worldwide work force has shrunk to about 90 employees, but the collector Caponi has little doubts it will be around in the future.

"Somehow this company has a history of weathering all the storms," he says. "This is just another storm."