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."
Tuesday, March 06, 2007
Wednesday, February 28, 2007
Searching for that elusive heat exchanger...
(Train sightings on 2/24/07)
was what I was looking for on this cold Saturday along the Lehigh Line.
My travels took me to Pattenburg (NJ) where NS 214 came through around 8:40. Power was BNSF 4667 (C44-9W), primer painted NS 7566 (ES40DC) and NS 7107 (GP60). It was unusual to see stacked empty truck trailers used for carrying containers in 214's consist. I can't recall seeing that before.
At 9:30, NS 21M, lead by NS 9380 (C40-9W) and two other units would head west past MP 68.
Driving back east along I-78, NS 11J was heard calling signals at CP 64 around 9:50.
At 11:15, NS 213, power unknown, would take the passing siding at Flemington Jct to hold for four eastbounds.
The first eastbounder was NS 18G. Power would be NS 7602 (ES40DC) and NS 9952 (C40-9W). As 18G passed through Stanton Station, it would inform 213 that it would have to wait until the heat exchanger passed that they would continue their westward trip.
Twenty minutes later, NS's ethanol train 64J would pass by with NS 2567 (SD70, ex-CR 2567) and NS 9261 (C40-9W) in command.
At high noon, the third train, a intermodal whose symbol was unknown, passed. Motive power was two C40-8Ws, PRR 8324 (ex-CR 6068) and NS 8351 (ex-CR 6112).
Drove down to Three Bridges where I finally caught the heat exchanger, its width fourteen feet and five inches, heading east at 2:10. Two NS units provided the power. Didn't get the lead unit's number but the second unit was NS 9550 (C40-9W).
Had to feel some pity for 213's crew as they would wait for nearly four hours before the heat exchanger would finally pass.
was what I was looking for on this cold Saturday along the Lehigh Line.
My travels took me to Pattenburg (NJ) where NS 214 came through around 8:40. Power was BNSF 4667 (C44-9W), primer painted NS 7566 (ES40DC) and NS 7107 (GP60). It was unusual to see stacked empty truck trailers used for carrying containers in 214's consist. I can't recall seeing that before.
At 9:30, NS 21M, lead by NS 9380 (C40-9W) and two other units would head west past MP 68.
Driving back east along I-78, NS 11J was heard calling signals at CP 64 around 9:50.
At 11:15, NS 213, power unknown, would take the passing siding at Flemington Jct to hold for four eastbounds.
The first eastbounder was NS 18G. Power would be NS 7602 (ES40DC) and NS 9952 (C40-9W). As 18G passed through Stanton Station, it would inform 213 that it would have to wait until the heat exchanger passed that they would continue their westward trip.
Twenty minutes later, NS's ethanol train 64J would pass by with NS 2567 (SD70, ex-CR 2567) and NS 9261 (C40-9W) in command.
At high noon, the third train, a intermodal whose symbol was unknown, passed. Motive power was two C40-8Ws, PRR 8324 (ex-CR 6068) and NS 8351 (ex-CR 6112).
Drove down to Three Bridges where I finally caught the heat exchanger, its width fourteen feet and five inches, heading east at 2:10. Two NS units provided the power. Didn't get the lead unit's number but the second unit was NS 9550 (C40-9W).
Had to feel some pity for 213's crew as they would wait for nearly four hours before the heat exchanger would finally pass.
NJ Transit Derailment on Wednesday, 2/21/07
The following information is summarized from an article in the Star-Ledger published on Thursday, 2/22/07. ("3 blamed for train that left the track" by Tom Feeney)
A NJ transit commuter train carrying 100 passengers derailed at Ridgewood Junction during the morning rush hour Wednesday, 2/21/07. Three of five cars left the tracks. No passengers or crew were injured. The train was going about 36 mph at the time. Ridgewood Junction is where the Main and Bergen County lines converge. As a result of the derailment there were significant delays throughout the day on the Main, Bergen County, and Port Jervis lines. Service was nearly back to normal by late in the evening.
Cause of the derailment? An improperly installed switch. The rails were too close together. "The rails are supposed to be 58 1/2 [sic] inches apart but were separated by only 54 1/2 inches." (Bloggers note: I thought rails were supposed to be 56 1/2 inches apart.) The switch had been replaced 10 days earlier, and hundreds of trains had passed through Ridgewood Junction since that time without incident. Three employees that were involved in the switch replacement and inspection were suspended - a track supervisor and two track foremen. They face administrative hearings.
A NJ transit commuter train carrying 100 passengers derailed at Ridgewood Junction during the morning rush hour Wednesday, 2/21/07. Three of five cars left the tracks. No passengers or crew were injured. The train was going about 36 mph at the time. Ridgewood Junction is where the Main and Bergen County lines converge. As a result of the derailment there were significant delays throughout the day on the Main, Bergen County, and Port Jervis lines. Service was nearly back to normal by late in the evening.
Cause of the derailment? An improperly installed switch. The rails were too close together. "The rails are supposed to be 58 1/2 [sic] inches apart but were separated by only 54 1/2 inches." (Bloggers note: I thought rails were supposed to be 56 1/2 inches apart.) The switch had been replaced 10 days earlier, and hundreds of trains had passed through Ridgewood Junction since that time without incident. Three employees that were involved in the switch replacement and inspection were suspended - a track supervisor and two track foremen. They face administrative hearings.
Tuesday, February 20, 2007
Railroad quiet zone in Hillsborough, NJ
from Wednesday's (2/14/07) Courier-News (NJ)
Hillsborough (NJ) begins work on train line quiet zones
Project may cost less than anticipated, traffic engineer says
By PAMELA SROKA Staff Writer
HILLSBOROUGH -- The Township Committee has taken a step toward establishing railroad quiet zones along the Norfolk Southern rail line after approving a notice of intent to the Federal Railroad Administration. Quiet zones are a section of a rail line that contains one or more public crossings, where locomotive horns will not be routinely sounded. Under federal law, locomotives are required to sound their horns when approaching crossings.
The notice to the federal government states that safety improvements are necessary for quiet zones to be established at four crossings along the Norfolk Southern Railroad at Beekman Lane, Auten Road, Valley Road and Roycefield Road. The crossings are within a few miles of each other.
The township appropriated $300,000 for the project after receiving $250,000 from developer Beazer Homes and using $50,000 from last year's capital budget. However, Maurice Rached, an engineer for Maser Consulting and the township's traffic engineer, said construction costs for the improvements will be less than originally anticipated. Original cost estimates ranged $350,000 to $450,000 and now the full costs will be about $300,000, Rached said during Tuesday's Township Committee meeting.
The project calls for more security devices to be installed so the zones may be approved by the Federal Railroad Administration, Rached said. The purpose of the notice is to provide an opportunity for railroads and state agencies to offer comments and recommendations to the township zone, he said. Federal regulations require the notice must be filed with the Federal Railroad Administration in Washington, D.C.; the state Department of Transportation Rail Safety Division; and with the Norfolk Southern Corporation in Roanoke, Va., said Clerk and Business Administrator Kevin Davis.
Hillsborough (NJ) begins work on train line quiet zones
Project may cost less than anticipated, traffic engineer says
By PAMELA SROKA Staff Writer
HILLSBOROUGH -- The Township Committee has taken a step toward establishing railroad quiet zones along the Norfolk Southern rail line after approving a notice of intent to the Federal Railroad Administration. Quiet zones are a section of a rail line that contains one or more public crossings, where locomotive horns will not be routinely sounded. Under federal law, locomotives are required to sound their horns when approaching crossings.
The notice to the federal government states that safety improvements are necessary for quiet zones to be established at four crossings along the Norfolk Southern Railroad at Beekman Lane, Auten Road, Valley Road and Roycefield Road. The crossings are within a few miles of each other.
The township appropriated $300,000 for the project after receiving $250,000 from developer Beazer Homes and using $50,000 from last year's capital budget. However, Maurice Rached, an engineer for Maser Consulting and the township's traffic engineer, said construction costs for the improvements will be less than originally anticipated. Original cost estimates ranged $350,000 to $450,000 and now the full costs will be about $300,000, Rached said during Tuesday's Township Committee meeting.
The project calls for more security devices to be installed so the zones may be approved by the Federal Railroad Administration, Rached said. The purpose of the notice is to provide an opportunity for railroads and state agencies to offer comments and recommendations to the township zone, he said. Federal regulations require the notice must be filed with the Federal Railroad Administration in Washington, D.C.; the state Department of Transportation Rail Safety Division; and with the Norfolk Southern Corporation in Roanoke, Va., said Clerk and Business Administrator Kevin Davis.
Rached said the following improvements to the crossings would be needed to meet the requirements for quiet zone designation:
- Beekman Lane: Construction of 4-foot wide, 100-foot long, raised islands at both approaches to the crossing; additional signage and pavement striping. Installation of a "power-out" indicator.
- Auten Road: Construction of 4-foot wide, 100-foot long, raised islands at both approaches to the crossing; additional signage and pavement striping. Installation of a "power-out" indicator.
- Valley Road: Construction of two new gates, which will cross the entire roadway, curbing at the edges of the roadway to prohibit vehicles from traversing around the gate. A wayside horn will be installed for each vehicular approach. Installation of a "power-out" indicator.
- Roycefield Road: Construction of 4-foot wide, 100-foot long, raised islands at both approaches to the crossing; additional signage and pavement striping. Installation of a "power-out" indicator.
Sunday, February 18, 2007
A C40-9W kind of day along the Lehigh Line...
(Train sightings on 2/10/07)
Saturday morning's sightings along the Lehigh Line started out at Flemington (NJ) Junction (CP 51) with NS 20K coming through around 8 AM. Power was two C40-9Ws, NS 9779 and NS 9129.
Once 20K was clear, NS 212 would come off the siding and head east. Motive power for 212 would be three GP60s, NS 7123, NS 7116, NS 7119, along with B32-8 NS 3559.
Next it was down to Manville where NS 21M was running a little later than usual. NS 9332 (C40-9W), NS 9130 (C40-9W) and NS 2775 (SD70M-2) would bring 21M through Manville around 9:10.
CSX's Q300 would then head east with HLCX 7172 (SD40-2, ex BN 7172) and CSX 8196 (SD40-2) for power.
NS 24V would finally roll through with two C40-9Ws, NS 9233 and NS 9399, for power around 11 o'clock. It would have a rolling meet with a westbound NS train with three C40-9Ws, NS 8991, NS 9024 and NS 9754, for power. I will speculate this train's symbol might have been NS 213 with some autoracks and TOFCs.
Saturday morning's sightings along the Lehigh Line started out at Flemington (NJ) Junction (CP 51) with NS 20K coming through around 8 AM. Power was two C40-9Ws, NS 9779 and NS 9129.
Once 20K was clear, NS 212 would come off the siding and head east. Motive power for 212 would be three GP60s, NS 7123, NS 7116, NS 7119, along with B32-8 NS 3559.
Next it was down to Manville where NS 21M was running a little later than usual. NS 9332 (C40-9W), NS 9130 (C40-9W) and NS 2775 (SD70M-2) would bring 21M through Manville around 9:10.
CSX's Q300 would then head east with HLCX 7172 (SD40-2, ex BN 7172) and CSX 8196 (SD40-2) for power.
At 10 o'clock, CSX S439-10 would bring its train of mixed freight down the Trenton Line. CSX 8773 (SD60M, ex-CR 5543) and CSX 8744 (SD60I, ex-CR 5631)was the power.
NS 24V would finally roll through with two C40-9Ws, NS 9233 and NS 9399, for power around 11 o'clock. It would have a rolling meet with a westbound NS train with three C40-9Ws, NS 8991, NS 9024 and NS 9754, for power. I will speculate this train's symbol might have been NS 213 with some autoracks and TOFCs.
Scheduled to roll down the Lehigh Line but not seen until later was NS 24V and NS 18G. They would come through Neshanic around 11:45. Power was not seen.
The final power tally would be nine C40-9Ws, two SD60s, two SD40-2s, three GP60s, one B32-8 and one SD70M-2. All in all, not a bad day to be trackside.
Friday, February 16, 2007
Freight train damages South Plainfield, NJ building
Home News Tribune Online 02/14/07
GANNETT NEW JERSEY
SOUTH PLAINFIELD - A freight train veered onto the wrong tracks Wednesday evening, striking a piece of equipment and coming to a stop inside the building of a paint manufacturer.
According to John Enright, a spokesman with Conrail, the train was traveling southeast on its way to Woodbridge at about 7:30 p.m. when an open rail switch sent it onto a side track.
The train, which was carrying more than 70 cars of ethanol, then struck a piece of rail equipment on the track and entered the building of Whittaker, Clark & Daniels Inc.
Enright said two locomotives, a buffer car and two of the tanker cars followed the rails into the building. At no time did the train derail, he said, and none of the tanker cars spilled open.
No injuries were reported and no evacuations were necessary, Enright said.
Enright said Conrail officials were still investigating why the switch was open. He said it was unclear if the error was human or if it was related to the weather or the movement of the train.
The area of the derailment sits right off Interstate 287, near Talmadge Road, in the southern part of the borough.
The Web site for Whittaker, Clark & Daniels Inc. describes the company as a manufacturer of colors, minerals and pigments for paint.
GANNETT NEW JERSEY
SOUTH PLAINFIELD - A freight train veered onto the wrong tracks Wednesday evening, striking a piece of equipment and coming to a stop inside the building of a paint manufacturer.
According to John Enright, a spokesman with Conrail, the train was traveling southeast on its way to Woodbridge at about 7:30 p.m. when an open rail switch sent it onto a side track.
The train, which was carrying more than 70 cars of ethanol, then struck a piece of rail equipment on the track and entered the building of Whittaker, Clark & Daniels Inc.
Enright said two locomotives, a buffer car and two of the tanker cars followed the rails into the building. At no time did the train derail, he said, and none of the tanker cars spilled open.
No injuries were reported and no evacuations were necessary, Enright said.
Enright said Conrail officials were still investigating why the switch was open. He said it was unclear if the error was human or if it was related to the weather or the movement of the train.
The area of the derailment sits right off Interstate 287, near Talmadge Road, in the southern part of the borough.
The Web site for Whittaker, Clark & Daniels Inc. describes the company as a manufacturer of colors, minerals and pigments for paint.
Thursday, February 15, 2007
Railroad Workers Hours of Service Rules
FOR IMMEDIATE RELEASE: February 14, 2007 SB-07-09
NTSB CHAIRMAN ASKS CONGRESS TO GIVE FRA HOURS OF SERVICE AUTHORITY
Washington, D.C. - National Transportation Safety Board Chairman Mark V. Rosenker today asked Congress to give the Federal Railroad Administration the statutory authority to revise hours of service rules for railroad workers, noting that current rules are not based on science related to fatigue.
Testifying before the Subcommittee on Railroads, Pipelines and Hazardous Materials of the House of Representatives Committee on Transportation and Infrastructure, Chairman Rosenker said that over the past 23 years the NTSB has investigated 16 major railroad accidents in which it established that the probable cause was crewmember fatigue.
Operator fatigue has been on the Board's Most Wanted List of Safety Improvements since 1990. In 1999, the Board evaluated the Department of Transportation's actions on fatigue and found that, although DOT supported research and educational programs, the problem continued to be widespread and presented an unnecessary risk to the traveling public.
The FRA is the only DOT modal agency that has hours of service for the employees it regulates set by federal statute. The Federal Hours of Service Act was enacted 100 years ago. Chairman Rosenker called the rules archaic and "not adequate to address the problem." They allow railroad operating employees to work 11 hours and 59 minutes, and return to work after only 8 hours off duty. However, if the employee works one more minute - a full 12 hours - the worker is required to have 10 hours off duty before returning to work. Rosenker said "workers are permitted to repeat that arduous work-rest cycle an unlimited number of times."
Fatigue related railroad accidents continue to occur, the latest of which documented by the NTSB was in Macdona, Texas in 2004. "The FRA needs authority to regulate crewmember work scheduling practices and work limits," Chairman Rosenker said. "The Safety Board continues to support the need for change that would provide the FRA the authority."
NTSB Press Contact: Ted Lopatkiewicz (202) 314-6100
lopatt@ntsb.gov
NTSB CHAIRMAN ASKS CONGRESS TO GIVE FRA HOURS OF SERVICE AUTHORITY
Washington, D.C. - National Transportation Safety Board Chairman Mark V. Rosenker today asked Congress to give the Federal Railroad Administration the statutory authority to revise hours of service rules for railroad workers, noting that current rules are not based on science related to fatigue.
Testifying before the Subcommittee on Railroads, Pipelines and Hazardous Materials of the House of Representatives Committee on Transportation and Infrastructure, Chairman Rosenker said that over the past 23 years the NTSB has investigated 16 major railroad accidents in which it established that the probable cause was crewmember fatigue.
Operator fatigue has been on the Board's Most Wanted List of Safety Improvements since 1990. In 1999, the Board evaluated the Department of Transportation's actions on fatigue and found that, although DOT supported research and educational programs, the problem continued to be widespread and presented an unnecessary risk to the traveling public.
The FRA is the only DOT modal agency that has hours of service for the employees it regulates set by federal statute. The Federal Hours of Service Act was enacted 100 years ago. Chairman Rosenker called the rules archaic and "not adequate to address the problem." They allow railroad operating employees to work 11 hours and 59 minutes, and return to work after only 8 hours off duty. However, if the employee works one more minute - a full 12 hours - the worker is required to have 10 hours off duty before returning to work. Rosenker said "workers are permitted to repeat that arduous work-rest cycle an unlimited number of times."
Fatigue related railroad accidents continue to occur, the latest of which documented by the NTSB was in Macdona, Texas in 2004. "The FRA needs authority to regulate crewmember work scheduling practices and work limits," Chairman Rosenker said. "The Safety Board continues to support the need for change that would provide the FRA the authority."
NTSB Press Contact: Ted Lopatkiewicz (202) 314-6100
lopatt@ntsb.gov
Tuesday, February 13, 2007
Not that cold to be trackside...
(Train sightings on 2/03/07)
on this Saturday morning near Manville (NJ) to check out what was running along the Lehigh Line. By time sequence, the trains observed were:
NS 212 @ 8:40-with autoracks and COFCs in tow, motive power was NS 8999 (C40-9W), NS 6616 (SD60) and PRR 8325 (C40-8W, ex-CR 6069).
NS 24Z @ 8:50-Motive power was two SD70M-2s, NS 2753 and NS 2756.
NS 24V 10:20-Motive power was PRR 8323 (C40-8W, ex-CR 6065) and NS 9568 (C40-9W).
CSX K277 @ 10:54-after waiting for a track car to come north on the Trenton Line, K277 was cleared to continue its journey. Motive power had CSX 5834 (B36-7) on the point, CSX 672 (AC60CW) and CSX 8866 (SD40-2) taking the garbage south for disposal.
NS 18G @ 11:10-NS 8366 (C40-8W, ex-CR 6137) and NS 2702 (SD70M-2) bringing this general merchandise train east. Waiting on the passing siding was NS 213. This train's power was NS 7102 (GP60), NS 3539 (B32-8), NS 7146 (GP60) and NS 7110 (GP60).
With the thermos of hot coffee nearly empty, time for me to call it a morning.
on this Saturday morning near Manville (NJ) to check out what was running along the Lehigh Line. By time sequence, the trains observed were:
NS 212 @ 8:40-with autoracks and COFCs in tow, motive power was NS 8999 (C40-9W), NS 6616 (SD60) and PRR 8325 (C40-8W, ex-CR 6069).
NS 24Z @ 8:50-Motive power was two SD70M-2s, NS 2753 and NS 2756.
NS 24V 10:20-Motive power was PRR 8323 (C40-8W, ex-CR 6065) and NS 9568 (C40-9W).
CSX K277 @ 10:54-after waiting for a track car to come north on the Trenton Line, K277 was cleared to continue its journey. Motive power had CSX 5834 (B36-7) on the point, CSX 672 (AC60CW) and CSX 8866 (SD40-2) taking the garbage south for disposal.
NS 18G @ 11:10-NS 8366 (C40-8W, ex-CR 6137) and NS 2702 (SD70M-2) bringing this general merchandise train east. Waiting on the passing siding was NS 213. This train's power was NS 7102 (GP60), NS 3539 (B32-8), NS 7146 (GP60) and NS 7110 (GP60).
With the thermos of hot coffee nearly empty, time for me to call it a morning.
Saturday, February 10, 2007
Train Derailment in BC, Canada
This is old news (early January), but you may not have seen these pictures.
BC derailment at Mile 97.5 (near Lytton) on the Ashcroft Subdivision on January 04, 2007.
Crew was rescued the next morning as they were unable to climb the embankment. Only minor injuries reported. Certainly a case of simple dumb luck that there were no serious injuries, or worse.
Thursday, February 08, 2007
UP MOW oops
Received the following by email concerning a UP MOW track crane and a bridge over the Columbia River. The kndu link is a TV news item with night time video that is hard to make out. The 2 links to tri-cityhearld are newspaper reports. The yahoo links are only good if you have a Yahoo account.
There was another bridge vs. vehicle incident this week up here in WA. This time it involved a UP MOW Track crane crossing over the Columbia River! The center draw-bridge span reportedly started to raise as the driver was crossing the river from Burbank to Finley, WA.
Monday Story and Video
http://www.kndu.com/Global/story.asp?S=6042865
http://www.tri-cityherald.com/tch/local/story/8618940p-8511530c.html
http://groups.yahoo.com/group/87scalecars/spnew/view/a1af?i=328
Tuesday followup story
http://www.tri-cityherald.com/tch/local/story/8621537p-8514153c.html
http://groups.yahoo.com/group/87scalecars/spnew/view/a1af?i=329
There was another bridge vs. vehicle incident this week up here in WA. This time it involved a UP MOW Track crane crossing over the Columbia River! The center draw-bridge span reportedly started to raise as the driver was crossing the river from Burbank to Finley, WA.
Monday Story and Video
http://www.kndu.com/Global/story.asp?S=6042865
http://www.tri-cityherald.com/tch/local/story/8618940p-8511530c.html
http://groups.yahoo.com/group/87scalecars/spnew/view/a1af?i=328
Tuesday followup story
http://www.tri-cityherald.com/tch/local/story/8621537p-8514153c.html
http://groups.yahoo.com/group/87scalecars/spnew/view/a1af?i=329
Tuesday, February 06, 2007
LIONEL’S GROSS SALES and PROFIT for 2006
Received the following by email. The profit seems high in relation to the sales, but read the whole posting.
LIONEL’S GROSS SALES IN 2006 TOP $62 MILLION
Company’s Operating Statement Shows $36.8 million dollar yearly profit
January 17, 2007-On January 16, 2007, Lionel filed its monthly operating report with the bankruptcy court. It is required to file a monthly operating report since it is in bankruptcy. The report was affirmed to by its Chief Financial Officer, Scott Turkington. December’s numbers were obtained directly from its profit and loss summary filed with court.
The interesting thing about December’s numbers is that it allows us to see how Lionel did as a company for the calendar year 2006, rather than just a monthly snapshot, which I have reported on in the past.
For the calendar year 2006, Lionel’s gross sales were $62,153,000, and its net sales were $59, 301,000. This is an increase when compared to calendar year 2005, when its yearly gross and net sales were $56,652,000 and $54,850,000 respectively. These figures represent increases in gross sales of $5.5 million, and $4.4 million in net sales between the two calendar years. December 2006's gross sales were over $6.8 million, and its net sales were over $6.1 million. Lionel’s best month in 2006 was November, where its gross and net sales were $11.4 million and over $11 million, respectively.
Part of Lionel CEO Jerry Calabrese’s business plan, is to sell a diversified line of Lionel products in more mainstream stores such as Macy’s and Target, in addition to the hobby store market (the funnel theory). This plan is having a positive effect on the company’s sales, based on the increases from 2005 to 2006.Perhaps the most interesting thing about Lionel’s December 2006 report is the monthly profit stated in it. For the month of December, Lionel posted a profit, or net income of $36,111,000. That figure is correct, over $36 million dollars. By contrast, Lionel posted a profit of $2.8 million in November, $1.1 million dollar profit in October, $1.6 million in September and $460,000 in August. Between January and July 2006, Lionel posted monthly losses, but that is to be expected, at least in part, since its business is seasonal.
For the year, Lionel posted a profit of $36,871,000.
Some may be thinking that the yearly profit (net income) seems very high in relation to the gross and net sales figures. Also unusual is that through the end of November, only one month earlier, Lionel’s year to date profit was $760,000 (the difference between the $36,871,000 yearly profit figure and December figure of $36,111,000).
The answer lies in the appeals court decision of December 14, 2006, where it vacated MTH’s $38.6 million dollar jury verdict in its trade secrets lawsuit against Lionel (the total judgment was $40.7 million, but the remaining $2.1 million was against the other two defendants, including Korea Brass). Up to and including November 2006’s monthly report, Lionel’s balance sheet carried a “litigation reserve” amount of $38.6 million on it. In December’s statement, that amount was reduced to zero, due to the court’s decision.
LIONEL’S GROSS SALES IN 2006 TOP $62 MILLION
Company’s Operating Statement Shows $36.8 million dollar yearly profit
January 17, 2007-On January 16, 2007, Lionel filed its monthly operating report with the bankruptcy court. It is required to file a monthly operating report since it is in bankruptcy. The report was affirmed to by its Chief Financial Officer, Scott Turkington. December’s numbers were obtained directly from its profit and loss summary filed with court.
The interesting thing about December’s numbers is that it allows us to see how Lionel did as a company for the calendar year 2006, rather than just a monthly snapshot, which I have reported on in the past.
For the calendar year 2006, Lionel’s gross sales were $62,153,000, and its net sales were $59, 301,000. This is an increase when compared to calendar year 2005, when its yearly gross and net sales were $56,652,000 and $54,850,000 respectively. These figures represent increases in gross sales of $5.5 million, and $4.4 million in net sales between the two calendar years. December 2006's gross sales were over $6.8 million, and its net sales were over $6.1 million. Lionel’s best month in 2006 was November, where its gross and net sales were $11.4 million and over $11 million, respectively.
Part of Lionel CEO Jerry Calabrese’s business plan, is to sell a diversified line of Lionel products in more mainstream stores such as Macy’s and Target, in addition to the hobby store market (the funnel theory). This plan is having a positive effect on the company’s sales, based on the increases from 2005 to 2006.Perhaps the most interesting thing about Lionel’s December 2006 report is the monthly profit stated in it. For the month of December, Lionel posted a profit, or net income of $36,111,000. That figure is correct, over $36 million dollars. By contrast, Lionel posted a profit of $2.8 million in November, $1.1 million dollar profit in October, $1.6 million in September and $460,000 in August. Between January and July 2006, Lionel posted monthly losses, but that is to be expected, at least in part, since its business is seasonal.
For the year, Lionel posted a profit of $36,871,000.
Some may be thinking that the yearly profit (net income) seems very high in relation to the gross and net sales figures. Also unusual is that through the end of November, only one month earlier, Lionel’s year to date profit was $760,000 (the difference between the $36,871,000 yearly profit figure and December figure of $36,111,000).
The answer lies in the appeals court decision of December 14, 2006, where it vacated MTH’s $38.6 million dollar jury verdict in its trade secrets lawsuit against Lionel (the total judgment was $40.7 million, but the remaining $2.1 million was against the other two defendants, including Korea Brass). Up to and including November 2006’s monthly report, Lionel’s balance sheet carried a “litigation reserve” amount of $38.6 million on it. In December’s statement, that amount was reduced to zero, due to the court’s decision.
Wednesday, January 31, 2007
Add to your Christmas Trains
Did you get trains for Christmas? How about adding more stuff? We have all sorts of things to make your Christmas trains even better, like more track and switches, more freight or passenger cars, another locomotive, cars and trucks, people, buildings, etc. We also have a great variety of scenery materials.
Do you have Lionel? We have some "add-on sets" from Lionel that contain 3 RR cars and some additional track. We also have individual RR cars and some operating accessories from Lionel.
Come in and browse around. I'm sure we have something to add to your enjoyment of The World's Greatest Hobby.
Do you have Lionel? We have some "add-on sets" from Lionel that contain 3 RR cars and some additional track. We also have individual RR cars and some operating accessories from Lionel.
Come in and browse around. I'm sure we have something to add to your enjoyment of The World's Greatest Hobby.
New Offerings from The N Scale Architect
We received the following announcement from The N Scale Architect, whose products we carry.
To kick off the new year, The N Scale Architect is releasing the N-Scale version of two very popular HO kits from our Railway Heritage Models product line, the Reading Company Standard Tower and Central of New Jersey Standard 2-Story Station !
Both of these kits were developed using actual prototype plans and are of structures that were replicated at numerous locations along the tracks of these two popular Northeastern railroads. Further information on these exact locations and detailed painting instructions are included with each kit along with our usual high quality laser-cut micro-plywood pieces, castings, roofing material and step-by-step instructions. Both of these kits are now available for immediate shipment.
To kick off the new year, The N Scale Architect is releasing the N-Scale version of two very popular HO kits from our Railway Heritage Models product line, the Reading Company Standard Tower and Central of New Jersey Standard 2-Story Station !
Both of these kits were developed using actual prototype plans and are of structures that were replicated at numerous locations along the tracks of these two popular Northeastern railroads. Further information on these exact locations and detailed painting instructions are included with each kit along with our usual high quality laser-cut micro-plywood pieces, castings, roofing material and step-by-step instructions. Both of these kits are now available for immediate shipment.
Tuesday, January 30, 2007
A meet at Flemington Jct's CP 51...
(Train sightings on 1/13/07)
found NS 24V holding the Lehigh Line's main here for NS 213. Power for 24V would be PRR 8434 (C40-8W, ex CR-6256), NS 6641 (SD60) and NS 7129 (GP60).
At 10:35, 213 [Elizabethport, NJ-Atlanta, Ga] would start to take the siding. Power on 213 would be NS 8950 (C40-9W) and NS 2504 (SD70, ex-CR 2504).
After 24V went west, another eastbound headlight appeared off it the distance. This headlight would belong to NS 9496 (C40-9W). That would be on the point for NS 214 [Atlanta, Ga-Croxton, NJ]. BNSF 7721 (ES44DC) and BNSF 1049 (C44-9W) were the additional units spotted on 214.
Not a bad way to spend an hour on this dreary Saturday morning at Flemington Jct (NJ).
found NS 24V holding the Lehigh Line's main here for NS 213. Power for 24V would be PRR 8434 (C40-8W, ex CR-6256), NS 6641 (SD60) and NS 7129 (GP60).
At 10:35, 213 [Elizabethport, NJ-Atlanta, Ga] would start to take the siding. Power on 213 would be NS 8950 (C40-9W) and NS 2504 (SD70, ex-CR 2504).
After 24V went west, another eastbound headlight appeared off it the distance. This headlight would belong to NS 9496 (C40-9W). That would be on the point for NS 214 [Atlanta, Ga-Croxton, NJ]. BNSF 7721 (ES44DC) and BNSF 1049 (C44-9W) were the additional units spotted on 214.
Not a bad way to spend an hour on this dreary Saturday morning at Flemington Jct (NJ).
Thursday, January 25, 2007
MTH - Lionel Legal Matters
The following was posted on the O Gauge Railroading Forum (OGR Forum) by Erol Gurcan, a laywer who follows these things.
MTH and Lionel Appear in Bankruptcy Court Today
Judge Directs the Parties to Mediate and Attempt Settlement of Their Legal Matters
January 9, 2006 - For the first time since December 14, 2006, when an appeals court vacated MTH’s $40.7 million dollar trade secrets verdict against Lionel, and remanded the case for another trial, attorneys for the two rival model train makers appeared in the Bankruptcy Court for the Southern District of New York today.
My summary of today’s legal proceedings will be a little different this time, compared with the past. I was present in court today to observe the proceedings, (as was Stuart Rankin aka OGR forumite Lionel LLC). In the past, my information was based on conversations with the party’s principals or their attorneys, or by reviewing the legal documents filed with the court.
Today’s legal proceedings were significant enough that both MTH’s Mike Wolf and Jerry Calabrese were present in court today. The two men shook hands upon seeing each other.
After making several applications for interim compensation on behalf of the attorneys and other professionals representing Lionel, which were quickly approved by Judge Lifland, their attorney Adam Harris, represented to the court that although the appeals court decision was very favorable to Lionel, they were still interested in settling the outstanding trade secrets case, and separate patent infringement lawsuit brought by MTH in June. Mr. Harris proposed to the court that a neutral third party mediator be agreed to by the parties so they could discuss settlement. Not surprisingly, he stated he expects the appeals court to deny the petition for reconsideration of its December 14 decision, filed by MTH with the appeals court on December 28. He also stressed it was in Lionel’s best interest to exit from bankruptcy as soon as possible as there are companies that will not do business with them until that occurs.
Mr. Alec Ostrow, representing MTH, then addressed the court. His proposal was that Lionel be directed to pay their other creditors in full, so they would not be prejudiced, and that the parties continue to litigate the legal matters between them. As Mr. Ostrow was discussing continuing the litigation between the parties, Judge Lifland, politely but firmly interrupted, and inquired why there was no response to Lionel’s proposed offer of settlement talks between the companies, or agreement to mediate their differences with a neutral third party. Mr. Ostrow requested a short adjournment so that he could confer with MTH’s Mike Wolf. Judge Lifland granted the request. Both Jerry Calabrese and Mike Wolf exited the courtroom to discuss matters with their attorneys.
After re-entering the courtroom, Mr. Ostrow informed Judge Lifland that MTH would agree to mediate the remaining legal issues between the parties.
Judge Lifland informed both sides they have 7 days to agree to a mediator. Mr. Harris proposed that one of the other bankruptcy judges be appointed, rather than selecting one through a private mediation company. Mr. Ostrow agreed this would be acceptable. Judge Lifland stated he would make an inquiry to some of his judicial colleagues, and would notify the parties if one of them would agree to do it. Judge Lifland noted that a “retrial of the trade secrets case would not be palatable to either side, and the lawyers should get out of the way.” In other words, he told the attorneys that they are not to be present when Mr. Wolf and Calabrese discuss settlement of the case between themselves or with a mediator.
Judge Lifland also informed the parties that if the legal issues are not resolved through settlement within one month, he would conduct a Bankruptcy Code section 502c estimation hearing on damages. This procedure allows the court to make a determination of any potential damages MTH would be entitled to for both the trade secrets lawsuit and separate patent infringement lawsuit (the patent infringement lawsuit was filed in the bankruptcy court since Lionel’s bankruptcy was already pending there). Mr. Ostrow stated an estimation hearing would be inappropriate if the case is not resolved through mediation. I suspect his rational for this is he would prefer to allow a jury to decide damages in the trade secrets case, as it did once before (prior to it later being vacated by the appeals court). Judge Lifland responded by stating he would not allow the bankruptcy to continue indefinitely. Lionel has been in bankruptcy since November 15, 2004 a period of over two years.
Both parties were also directed to work out scheduling orders for each litigation matter, even if it looks like the legal matters will settle.
Hopefully, the apparent willingness of both sides to discuss resolution of the various legal matter s between them, coupled with the judge’s directives, will result in a settlement of their legal disputes. Stay tuned
Please, let’s keep all follow-up posts civil, and avoid rude comments and speculation. Thanks.
Erol Gurcan
MTH and Lionel Appear in Bankruptcy Court Today
Judge Directs the Parties to Mediate and Attempt Settlement of Their Legal Matters
January 9, 2006 - For the first time since December 14, 2006, when an appeals court vacated MTH’s $40.7 million dollar trade secrets verdict against Lionel, and remanded the case for another trial, attorneys for the two rival model train makers appeared in the Bankruptcy Court for the Southern District of New York today.
My summary of today’s legal proceedings will be a little different this time, compared with the past. I was present in court today to observe the proceedings, (as was Stuart Rankin aka OGR forumite Lionel LLC). In the past, my information was based on conversations with the party’s principals or their attorneys, or by reviewing the legal documents filed with the court.
Today’s legal proceedings were significant enough that both MTH’s Mike Wolf and Jerry Calabrese were present in court today. The two men shook hands upon seeing each other.
After making several applications for interim compensation on behalf of the attorneys and other professionals representing Lionel, which were quickly approved by Judge Lifland, their attorney Adam Harris, represented to the court that although the appeals court decision was very favorable to Lionel, they were still interested in settling the outstanding trade secrets case, and separate patent infringement lawsuit brought by MTH in June. Mr. Harris proposed to the court that a neutral third party mediator be agreed to by the parties so they could discuss settlement. Not surprisingly, he stated he expects the appeals court to deny the petition for reconsideration of its December 14 decision, filed by MTH with the appeals court on December 28. He also stressed it was in Lionel’s best interest to exit from bankruptcy as soon as possible as there are companies that will not do business with them until that occurs.
Mr. Alec Ostrow, representing MTH, then addressed the court. His proposal was that Lionel be directed to pay their other creditors in full, so they would not be prejudiced, and that the parties continue to litigate the legal matters between them. As Mr. Ostrow was discussing continuing the litigation between the parties, Judge Lifland, politely but firmly interrupted, and inquired why there was no response to Lionel’s proposed offer of settlement talks between the companies, or agreement to mediate their differences with a neutral third party. Mr. Ostrow requested a short adjournment so that he could confer with MTH’s Mike Wolf. Judge Lifland granted the request. Both Jerry Calabrese and Mike Wolf exited the courtroom to discuss matters with their attorneys.
After re-entering the courtroom, Mr. Ostrow informed Judge Lifland that MTH would agree to mediate the remaining legal issues between the parties.
Judge Lifland informed both sides they have 7 days to agree to a mediator. Mr. Harris proposed that one of the other bankruptcy judges be appointed, rather than selecting one through a private mediation company. Mr. Ostrow agreed this would be acceptable. Judge Lifland stated he would make an inquiry to some of his judicial colleagues, and would notify the parties if one of them would agree to do it. Judge Lifland noted that a “retrial of the trade secrets case would not be palatable to either side, and the lawyers should get out of the way.” In other words, he told the attorneys that they are not to be present when Mr. Wolf and Calabrese discuss settlement of the case between themselves or with a mediator.
Judge Lifland also informed the parties that if the legal issues are not resolved through settlement within one month, he would conduct a Bankruptcy Code section 502c estimation hearing on damages. This procedure allows the court to make a determination of any potential damages MTH would be entitled to for both the trade secrets lawsuit and separate patent infringement lawsuit (the patent infringement lawsuit was filed in the bankruptcy court since Lionel’s bankruptcy was already pending there). Mr. Ostrow stated an estimation hearing would be inappropriate if the case is not resolved through mediation. I suspect his rational for this is he would prefer to allow a jury to decide damages in the trade secrets case, as it did once before (prior to it later being vacated by the appeals court). Judge Lifland responded by stating he would not allow the bankruptcy to continue indefinitely. Lionel has been in bankruptcy since November 15, 2004 a period of over two years.
Both parties were also directed to work out scheduling orders for each litigation matter, even if it looks like the legal matters will settle.
Hopefully, the apparent willingness of both sides to discuss resolution of the various legal matter s between them, coupled with the judge’s directives, will result in a settlement of their legal disputes. Stay tuned
Please, let’s keep all follow-up posts civil, and avoid rude comments and speculation. Thanks.
Erol Gurcan
Saturday, January 20, 2007
Trains and Snow - Part 2
(Also see Part 1 below posted on 1/17/07.)
Here is a set of pictures of a UP rotary snowplow working in western Kansas, near Wallace, around New Year's day. It seems to be working east, and probably came out of the Denver area.
Here is a set of pictures of a UP rotary snowplow working in western Kansas, near Wallace, around New Year's day. It seems to be working east, and probably came out of the Denver area.
UP Rotary 900082 coming almost straight at the camera.
Just west of overpass
Standing on overpass. Note top of guard rail in foreground.
Note depth of drift the plow just went through. This is the back of the work train.
Coming up to Wallace, KS
Wednesday, January 17, 2007
Trains and Snow - Part 1
Here in central New Jersey we have been having a mild winter, although we just entered a cold spell today. But still no snow to speak of. Not normal for us. But other parts of North America have gotten snow, and the following sets of pictures we received via email show 2 railroads dealing with a lot of snow.
The first set of pics are of a CN coal train on the ex BC RAIL/PGE that was hit by a snowslide. Don't know exactly when this happened, but the email was dated 1/11/07. The email also included the following text: "CP also had a major avalanche on the Mountain Sub at the west end of the Mount McDonald Tunnel yesterday blocking the railroad and the trans-Canada highway."
The first set of pics are of a CN coal train on the ex BC RAIL/PGE that was hit by a snowslide. Don't know exactly when this happened, but the email was dated 1/11/07. The email also included the following text: "CP also had a major avalanche on the Mountain Sub at the west end of the Mount McDonald Tunnel yesterday blocking the railroad and the trans-Canada highway."
Saturday, January 13, 2007
C-Span to feature rail author
January 10, 2007
BALTIMORE - Rush Loving, Jr., author of the best selling book, "The Men Who Loved Trains," will appear on cable television network C-Span next week discussing his book. The interview was taped at the B&O Railroad Museum in Baltimore. It is scheduled to air on C-Span Sunday, Jan.14 at 7 p.m., Eastern time and be repeated at 1:30 a.m. Eastern time Monday, Jan 15. Loving's book offers a behind-the-scenes look at the boardroom battles to save America's northeastern railroads beginning with the lead-up to the Penn Central merger through the Conrail break-up in 1999. Loving is a journalist and former associate editor of Fortune magazine who covered the demise of Penn Central and the creation of Conrail.
BALTIMORE - Rush Loving, Jr., author of the best selling book, "The Men Who Loved Trains," will appear on cable television network C-Span next week discussing his book. The interview was taped at the B&O Railroad Museum in Baltimore. It is scheduled to air on C-Span Sunday, Jan.14 at 7 p.m., Eastern time and be repeated at 1:30 a.m. Eastern time Monday, Jan 15. Loving's book offers a behind-the-scenes look at the boardroom battles to save America's northeastern railroads beginning with the lead-up to the Penn Central merger through the Conrail break-up in 1999. Loving is a journalist and former associate editor of Fortune magazine who covered the demise of Penn Central and the creation of Conrail.
The bridges of Hunterdon County...
(Train sightings on 1/6/07)
along the Lehigh Line in Hunterdon County (NJ) provided Saturday morning's vantage points and photo landmarks. With temperatures in the mid-sixties, I had to pinch myself to make sure I wasn't dreaming and this was actually January and not early spring. The line up of NS trains was as follows:
NS 19G rolled by Flemington Jct (CP51) @ 8:32-Motive power was two C40-9Ws, NS 9159 and NS 9509, along with PRR 3026 (GP40-2, ex-CR 3324). Behind these three there was 151 cars of freight. Car 146's appearance provided a nice sight. It was a Rio Grande boxcar. I haven't seen many of those during my time trackside. 19G would be instructed to take "...the long siding at Pattenburg..." as it passed by CP51 so that 21M could pass by.
NS 21M-Bloomsbury @ 9:30-Motive power would be NS 8931 (C40-9W) and NS 7535 (ES40DC).
NS 24V-Bloomsbury @ 10:24 was the time when 24V would pass beneath the Milford Road Bridge.
NS 18G-Jutland @ 11:30-Motive power would be NS 9809 (C40-9W), PRR 8329 (C40-8W, ex-CR 6074) and HLCX 5980 (SD60) would take the siding at Flemington Jct.
Warm temperatures and a nice array of trains made for an enjoyable morning. No complaints from me on this day!
along the Lehigh Line in Hunterdon County (NJ) provided Saturday morning's vantage points and photo landmarks. With temperatures in the mid-sixties, I had to pinch myself to make sure I wasn't dreaming and this was actually January and not early spring. The line up of NS trains was as follows:
NS 19G rolled by Flemington Jct (CP51) @ 8:32-Motive power was two C40-9Ws, NS 9159 and NS 9509, along with PRR 3026 (GP40-2, ex-CR 3324). Behind these three there was 151 cars of freight. Car 146's appearance provided a nice sight. It was a Rio Grande boxcar. I haven't seen many of those during my time trackside. 19G would be instructed to take "...the long siding at Pattenburg..." as it passed by CP51 so that 21M could pass by.
NS 21M-Bloomsbury @ 9:30-Motive power would be NS 8931 (C40-9W) and NS 7535 (ES40DC).
NS 24V-Bloomsbury @ 10:24 was the time when 24V would pass beneath the Milford Road Bridge.
NS 18G-Jutland @ 11:30-Motive power would be NS 9809 (C40-9W), PRR 8329 (C40-8W, ex-CR 6074) and HLCX 5980 (SD60) would take the siding at Flemington Jct.
Warm temperatures and a nice array of trains made for an enjoyable morning. No complaints from me on this day!
Tuesday, January 09, 2007
de luxe Innovations has been sold
de luxe Innovations, manufacture of N-scale models, has been sold to Squeak N Products of Whippany, NJ. de luxe Innovations makes N-scale models of intermodal containers, double stack well cars, Road Railers, wood chip cars, some hopper cars, etc. We carry de luxe Innovation products here at The Big Little Railroad Shop.
Following is from Model Retailer 01/07.
"DeLuxe Innovations changes hands, coasts.
N-scale model-railroad manufacturer deLuxe Innovations has changed ownership and locations.
Founded in 1993 by George Johnsen, the company will now be headed by Dave Ferrari, a veteran of the model railroad industry. Ferrari is the founder of Squeak N Products and held a position at Atlas Model Railroad.
As for the name, deLuxe is now DeLuxe with a capital D and purple triangle logo. It is moving its headquarters from Burbank CA to Whippany NJ, appropriately in a 53 ft. CSX intermodal container on a double stack train.
Veteran deLuxe managers Steve Rodgers and Craig Ross will stay with the company. Rodgers and his dealer sales office will remain in IL. Atlas veteran Wayne Shortman has joined the team."
Check out the web sites.
Following is from Model Retailer 01/07.
"DeLuxe Innovations changes hands, coasts.
N-scale model-railroad manufacturer deLuxe Innovations has changed ownership and locations.
Founded in 1993 by George Johnsen, the company will now be headed by Dave Ferrari, a veteran of the model railroad industry. Ferrari is the founder of Squeak N Products and held a position at Atlas Model Railroad.
As for the name, deLuxe is now DeLuxe with a capital D and purple triangle logo. It is moving its headquarters from Burbank CA to Whippany NJ, appropriately in a 53 ft. CSX intermodal container on a double stack train.
Veteran deLuxe managers Steve Rodgers and Craig Ross will stay with the company. Rodgers and his dealer sales office will remain in IL. Atlas veteran Wayne Shortman has joined the team."
Check out the web sites.
Monday, January 08, 2007
Before 2006 ends...
(Train sightings on 12/30/06)
I decided one more trip trackside was on my agenda. Despite overcast skies I headed out along the Lehigh Line at various locations on this Saturday morning. The trains and their locations are as follows:
NS 21M (North Bergen, NJ to Chicago, IL-BNSF) -Bloomsbury, NJ (MP 69) @ 9:10-had two SD70M-2s, NS 2771 and NS 2745, along with NS 9962 (C40-9W) for power.
NS 19G (Oak Island, NJ to Pittsburgh, PA)-Jutland, NJ (MP 60.8) @ 9:36- was laboring with 104 cars of freight as it approached "NJ's Continental Divide" at Pattenburg Tunnel. Motive power was NS 9711 (C40-9W) and PRR 8443 (C40-8W, ex-CR 6271).
NS 24V (Harrisburg, PA to Dockside, NJ)-Flemington Jct. NJ (MP 51) @ 10:30- had NS 9343 (C40-9W) and CEFX 3166 (SD40-2, ex-UP 3360) bringing the containers east on this overcast Saturday.
In closing, I hope that 2006 was a good year for you and that 2007 will be even better...
I decided one more trip trackside was on my agenda. Despite overcast skies I headed out along the Lehigh Line at various locations on this Saturday morning. The trains and their locations are as follows:
NS 21M (North Bergen, NJ to Chicago, IL-BNSF) -Bloomsbury, NJ (MP 69) @ 9:10-had two SD70M-2s, NS 2771 and NS 2745, along with NS 9962 (C40-9W) for power.
NS 19G (Oak Island, NJ to Pittsburgh, PA)-Jutland, NJ (MP 60.8) @ 9:36- was laboring with 104 cars of freight as it approached "NJ's Continental Divide" at Pattenburg Tunnel. Motive power was NS 9711 (C40-9W) and PRR 8443 (C40-8W, ex-CR 6271).
NS 24V (Harrisburg, PA to Dockside, NJ)-Flemington Jct. NJ (MP 51) @ 10:30- had NS 9343 (C40-9W) and CEFX 3166 (SD40-2, ex-UP 3360) bringing the containers east on this overcast Saturday.
In closing, I hope that 2006 was a good year for you and that 2007 will be even better...
Sunday, January 07, 2007
Interview with Lionel CEO Jerry Calabrese
Below is an interview with Lionel CEO Jerry Calabrese and visit with photos of Lionel's NYC office that originally appeared in The Lionel Collector Club's (LCCA) magazine, "The Lion Roars."
With regard to the delivery of TMCC II, that is now scheduled for Late February, pursuant to a discussion with Mr. Calabrese last week. The story states January, but it has been pushed back since then.
The Past Is Prologue
Train hobbyists familiar with the history of Lionel® know that when New Yorker Joshua Lionel Cowen entered the electric train business more than 100 years ago, he setup shop in lower Manhattan. During Lionel’s golden years following World War II, the company had an office and display showroom at 15 East 26th Street in mid-town Manhattan. After General Mills bought Lionel in 1969, the company moved to Chesterfield, Michigan. The connection to New York City all but disappeared.
The good news is that on February 16, 2006, President/CEO Jerry Calabrese announced in an online press release that Lionel would open an office and showroom in Manhattan. In essence, the company has come full circle and returned to its roots in New York City. On October 17, 2006, I visited Lionel’s new office and met Mr. Calabrese, who now works at this location as home base (see photo 1).
Photo 1
With regard to the delivery of TMCC II, that is now scheduled for Late February, pursuant to a discussion with Mr. Calabrese last week. The story states January, but it has been pushed back since then.
The Past Is Prologue
Train hobbyists familiar with the history of Lionel® know that when New Yorker Joshua Lionel Cowen entered the electric train business more than 100 years ago, he setup shop in lower Manhattan. During Lionel’s golden years following World War II, the company had an office and display showroom at 15 East 26th Street in mid-town Manhattan. After General Mills bought Lionel in 1969, the company moved to Chesterfield, Michigan. The connection to New York City all but disappeared.
The good news is that on February 16, 2006, President/CEO Jerry Calabrese announced in an online press release that Lionel would open an office and showroom in Manhattan. In essence, the company has come full circle and returned to its roots in New York City. On October 17, 2006, I visited Lionel’s new office and met Mr. Calabrese, who now works at this location as home base (see photo 1).
Photo 1
The New NYC Office
The new office is located in the NAP building, on the northeast corner of Madison Avenue and 33rd Street, not too far from the old office/showroom on 26th Street. The offices for Calabrese and Vice President of Marketing Mark Erickson are on the 11th floor. A large room on the second floor currently contains three small operating display layouts shown in photos 2, 3, and 4. Currently, the room is used to display and demonstrate Lionel products to corporate buyers from retail stores.
Photo 2
Photo 3
Photo 4
Jerry explained the purpose of a New York City office as “Being close to the executive offices of potential retail buyers, such as those who attend Toy Fair, and licensors like NASCAR. Retail buyers representing the major department stores will not travel to Chesterfield to see Lionel products,” he said, “so if they won’t come to the mountain, we’ll bring the mountain to them.”
The Man and His Plan
Calabrese became the President and CEO of Lionel LLC in September 2004. Prior to that, his career posts included: President of Marvel Comics Group, the ad agency of record for NASCAR’s 50th anniversary in 1998, a Senior Vice President for Playboy, and Editor of “Games” magazine. He is an expert at rebuilding and redeveloping hobby-based businesses, which of course makes him ideally suited to lead Lionel.
When I asked him about Lionel’s current marketing plans, he was eager to talk about it. He has a specific two level vision for the company — to offer a diversified line of high-quality Lionel products and to broaden the retail base where the company’s trains can be purchased. He cited The Bose Corporation® (maker of speakers, Surround Sound™ systems, and the Wave Radio™) as a business model that Lionel should try to emulate.
Quality throughout the Line
“In order for Lionel to be successful, we must offer a diversified product line in terms of cost, but with high quality,” he said, “beginning with a $200 starter set such as the Pennsylvania Flyer set [6-30018] for first-time buyers at one end of the spectrum and continuing to top-of-the-line products such as the Acela set for $2,000.”
He stressed that quality consciousness must include everything in between: low cost accessories, expansion packs, and mid-priced engines in the $300 to $800 dollar range. “Once a ‘newbie’ to the hobby has purchased a starter set, the next step may be to add-on an expansion pack for that set. That’s why we offered them for the less expensive starter sets a couple of years ago. Similarly, it’s the reason for presenting additional passenger cars, the elf hand car, and an add-on figure set for our very popular Polar Express set [6-31960]. The third step would be to point customers to a mid-priced engine, and the ultimate goal would be to get as many devoted enthusiasts into the hobby as realistically possible.”
Seeking Retailers but not Discounters
Jerry emphasized that Lionel must expand its retail base beyond the traditional hobby stores in order to reach more first-time buyers and bring them into the hobby; thereby increasing sales. “Lionel needs to sells trains in mainstream retail stores where they will be discovered and purchased by the general public,” he said.
“We have worked hard to convince upscale retail stores to carry Lionel train sets with the understanding that the trains would not be cheaper versions of cataloged sets nor built-down to meet a certain price point. We told retailers of the value, tradition, and quality of the Lionel brand, and we pressed for agreement about not discounting the sets. Also, retailers will not be entitled to sell our other items such as track and operating accessories. Those products will be reserved exclusively for the hobby store market.”
Making a Christmas List
He cited several specific examples of how Lionel would accomplish this during this holiday season. First, they teamed up with Target, the nation’s second-largest retail store chain, as its exclusive general merchandise retailer. Target will sell an exclusive uncataloged starter set with the venerable 4-4-2 Atlantic steam locomotive and tender with Trainsounds and four freight cars for $249. The set will include such extras as a tractor-trailer truck, play mat, and railroad signs. Jerry excitedly referred to this set as “the big box of trains” (see photo 5).
Photo 5
Lionel will also provide its starter sets to upscale stores including Macy’s, FAO Schwartz, Dillards, Fortunoff, and Belks this Christmas season. All these stores will carry the Polar Express set, O-gauge Christmas set [6-30039], and the Holiday Tradition Express G-scale Christmas set [7-11000] (see photo 6). Lionel has sold almost 20,000 G-scale Christmas sets to retailers and hobby stores.
Photo 6
Most of these stores will also be selling the Thomas and Friends set [6-31956]. Macy’s will offer the Pennsylvania Flyer set and the New York Central Flyer set with Trainsounds. Because it is located in the south where NASCAR events are very popular, Belks will also be selling NASCAR train sets.
Due in part to these efforts, Calabrese expects Lionel’s gross sales for 2006 to be in the $65 to $70 million dollar range. Lionel will honor its one-year warranty for purchases made in retail stores as a confidence builder.
Visual Excitement on Rails
Lionel has installed operating display layouts in some retail stores — at Macy’s in New York City, FAO Schwartz stores in New York City and Las Vegas, Fortunoff stores in New York and New Jersey, and the Dillards store in Dallas, Texas. All the stores will have one or more of the three layouts shown in photos 2 through 4. TW Designs in Dallas, Texas built the layouts.
Lionel will also operate two large public layouts during the holiday season in New York City; one at the New York City Transit Museum within Grand Central Station (42nd Street and Lexington Avenue), and the other in Santa Land at Macy’s at Herald Square (34th Street and Sixth Avenue). The Grand Central layout will be open through January 15, 2007.
What’s Happening Now?
He described Lionel’s much-anticipated, new Big Boy locomotive, the first engine available with TMCC II Legacy Command Control™ as featured on the cover of the 2006 Volume 2 Catalog. “Dealer orders for this locomotive exceeded expectations by fifty percent — an encouraging situation, especially since this locomotive is expensive, listing for $1,700. The free Legacy set offered with this loco was the driving force behind it.”
Both the locomotive and TMCC II are currently scheduled for release in January 2007. TMCC II was first demonstrated by Jerry and Lou Kovach in Denver during the LCCA Convention in July.
NASCAR train sets were scheduled to hit stores in mid to late November, in time for the Christmas season. The NASCAR expansion packs are scheduled for release in January or February 2007, in time for the beginning of the car-racing season.
Regarding the future integration of the K-Line brand into the Lionel portfolio, Jerry said there will new K-Line products offered in 2007 with an emphasis on mid-priced locomotives in the $300 to $800 range. On a related note, K-Line orders from the old K-Line Collector Club, most notably the SD-70MAC diesel locomotive, are scheduled for January 2007 delivery. Lionel previously agreed to honor Collector Club orders placed before K-Line declared bankruptcy but not delivered.
What’s Happening Next
Lionel’s product plans for 2007 will include an O-gauge Harry Potter Hogwarts Express passenger train set for release in the summer (see photo 7). This set will bear a retail price in the $300 range. Jerry hopes this set will become the successor to the popular Polar Express passenger set.
Photo 7
Lionel will offer familiar trains in G scale: a Polar Express set and a Thomas the Tank Engine set. To me, the most interesting thing about these sets is they will be powered by a rechargeable battery pack instead of a transformer and operated by an infra-red remote control. The trains will be retail priced in the $130 to $140 zone. Lionel has entered into licensing agreements for these sets. Jerry showed me a pre-production sample of the Polar Express set (see photo 8). The locomotive will not have a puffing smoke unit. The observation car has a panel in the roof that flips and shows the “hobo ghost” from the movie on one side (see photo 9).
Photo 8
Photo 9
A G-scale General set will also be produced. With the rechargeable battery pack and remote control, it will list in the $120 to $130 range, as a licensing agreement is not involved. Lionel will also offer low-cost accessories to those who have previously bought starter sets. One of the items will be a play mat with computer-generated imagery on it. The ballast on the production sample was so realistic that I had to touch it to determine if it was real ballast or part of the computer-generated picture.
A second accessory item will be a “scenic panorama” desert scene (see photo 10). The panorama will have openings through it so that track and a train can pass through. It is possible, but not yet definite, that the computer-generated play mat and scenic panorama will be sold together as a modest-cost accessory set.
Photo 10
Stay Tuned for More
I’m sure there will be other surprises in the pipeline for hobbyists in 2007, but I didn’t expect Calabrese to reveal them all and risk deflating the excitement when the Lionel 2007 Volume 1 Catalog arrives in a few weeks. Monitor your mailbox!
Tuesday, January 02, 2007
There were some trains running on Christmas Eve...
(Train sightings on 12/24/06)
on the Lehigh Line near Manville (NJ) and they were as follows:
NS @ 7:55 This westbound train's symbol was unknown and spotted at the Roycefield Road grade crossing. For power it had PRR 8330 (C40-8W, ex-CR 6076) and NS 8763 (D8-40C). Its consist was a combination of empty auto racks along with mixed freight.
NS 19G (Oak Island, NJ to Pittsburgh, PA) @ 8:15-Power was two C40-9Ws, NS 9522 and NS 9346. Behind them was 148 cars of mixed freight.
CSX Q300 (Philadelphia, PA to Oak Island, NJ) @ 8:20-had HLCX 8142 (SD40-2, ex-BN 8142) and CSX 7787 (C40-8W) for power.
NS 24V (Harrisburg, PA to Dockside, NJ) @ 9:10-had NS 9473 (C40-9W) and UP 4914 (SD70M) for power.
Hope everyone has a good holiday...
--
on the Lehigh Line near Manville (NJ) and they were as follows:
NS @ 7:55 This westbound train's symbol was unknown and spotted at the Roycefield Road grade crossing. For power it had PRR 8330 (C40-8W, ex-CR 6076) and NS 8763 (D8-40C). Its consist was a combination of empty auto racks along with mixed freight.
NS 19G (Oak Island, NJ to Pittsburgh, PA) @ 8:15-Power was two C40-9Ws, NS 9522 and NS 9346. Behind them was 148 cars of mixed freight.
CSX Q300 (Philadelphia, PA to Oak Island, NJ) @ 8:20-had HLCX 8142 (SD40-2, ex-BN 8142) and CSX 7787 (C40-8W) for power.
NS 24V (Harrisburg, PA to Dockside, NJ) @ 9:10-had NS 9473 (C40-9W) and UP 4914 (SD70M) for power.
Hope everyone has a good holiday...
--
Tuesday, December 19, 2006
Gift Certificates
Afraid your family or friends will get you the wrong thing for Christmas? Suggest a gift certificate from The Big Little Railroad Shop. Then you can come in and get exactly what you want. This is especially good for special order items.
Here's another idea for gift certificates. Get multiple people to each give you one, then come in and use them together to get something a little more expensive.
Of course if you are a gift giver, as opposed to a gift receiver, and you are not sure exactly what to buy your modeler, then a gift certificate would be perfect.
Here's another idea for gift certificates. Get multiple people to each give you one, then come in and use them together to get something a little more expensive.
Of course if you are a gift giver, as opposed to a gift receiver, and you are not sure exactly what to buy your modeler, then a gift certificate would be perfect.
Monday, December 18, 2006
Railroad Graffiti
The following is an editorial from the December 2006 issue of Railpace magazine. Note that we carry Railpace and many other fine magazines covering railroads and modeling. Also, we do not encourage nor condone graffiti like some other retailer apparently does.
Graffiti Trains
Railfans and rail photographers are becoming increasingly concerned about the growing graffiti menace that has coated nearly every American freight car, and even some locomotives, during the past decade. Kilroy Was Here white chalk markings, and Herbie scrawls on freight cars go back a century or more, but these are marginalia compared with the massive “murals” we now find covering car numbers, AAR markings and FRA reflective tape.
The latest outrage is the Enamelized Graffiti Diecast Train Collection line of toys sold by Wal-Mart, which contains a 1:137 scale (slightly larger than N scale) freight car covered with graffiti, selling for the Always Low Price of $2.97. But the real shocker is the trading card that comes with each car, glorifying the “artist” who has trespassed on railroad property for the express purpose of defacing private property. But wait— it gets worse. Each package contains a web address— www.graffsupply.com --where you can “learn more about graffiti and it’s [sic] artists,” purchase books and videos with step-by-step instructions on
“tagging” railcars, and order graffiti supplies. Did you know an “artist” can spend $55 on this site for a spray nozzle to perfect his technique? The line of Graffiti Trains is brought to you by Maisto, a Hong Kong importer based in Fontana, California. Their press release proclaims: “Graffiti keeps becoming more and more mass and diluted. To be able to use authentic graffiti and tell the stories of the artists in this train collection is a step foreword [sic] in broadening the culture.” “Deep in most inner cities, there is an artist with a collection of spray cans and a vision of getting up on trains that go across the country,” says Ralph Benitez, the influential Art Director who has launched Playerz, Pro-Rodz, and G-Rides lines of die-cast collectibles for Maisto. “This collection pays tribute to those artists that did.”
Trucking companies, container lines, and package delivery companies don’t put up with this urban pathology. It is shameful that the railroad industry has virtually surrendered to the graffiti assault— and that Wal-Mart is promoting it. One rail industry wag stated “at least someone is painting our cars, so they don’t rust!” Many of these graffiti creations involve hours of tedious work, often done by “tagger teams” -- so much for “homeland security” in our nation’s rail yards.
We wonder why the fine people at Union Pacific haven’t jumped on graffiti artists for licensing fees, as they so eagerly have done with legitimate model railroad manufactures. And why the Model Railroad Industry Association (MRIA) hasn’t encouraged Wal-Mart (and other large retailers) to carry a line of inexpensive (non-graffiti) trains, to introduce more Americans to The World’s Greatest Hobby.
Perhaps it will take rail enthusiasts and photographers to turn up the heat where railroads and model makers won’t. You can start by sending an e-mail with your views to Wal-Mart’s ethics department at ethics@walmart.com. And perhaps to your area railroad too, asking them why they tolerate trespassing and destruction of private property. The answers you get may be revealing.
-- Tom Nemeth --
Graffiti Trains
Railfans and rail photographers are becoming increasingly concerned about the growing graffiti menace that has coated nearly every American freight car, and even some locomotives, during the past decade. Kilroy Was Here white chalk markings, and Herbie scrawls on freight cars go back a century or more, but these are marginalia compared with the massive “murals” we now find covering car numbers, AAR markings and FRA reflective tape.
The latest outrage is the Enamelized Graffiti Diecast Train Collection line of toys sold by Wal-Mart, which contains a 1:137 scale (slightly larger than N scale) freight car covered with graffiti, selling for the Always Low Price of $2.97. But the real shocker is the trading card that comes with each car, glorifying the “artist” who has trespassed on railroad property for the express purpose of defacing private property. But wait— it gets worse. Each package contains a web address— www.graffsupply.com --where you can “learn more about graffiti and it’s [sic] artists,” purchase books and videos with step-by-step instructions on
“tagging” railcars, and order graffiti supplies. Did you know an “artist” can spend $55 on this site for a spray nozzle to perfect his technique? The line of Graffiti Trains is brought to you by Maisto, a Hong Kong importer based in Fontana, California. Their press release proclaims: “Graffiti keeps becoming more and more mass and diluted. To be able to use authentic graffiti and tell the stories of the artists in this train collection is a step foreword [sic] in broadening the culture.” “Deep in most inner cities, there is an artist with a collection of spray cans and a vision of getting up on trains that go across the country,” says Ralph Benitez, the influential Art Director who has launched Playerz, Pro-Rodz, and G-Rides lines of die-cast collectibles for Maisto. “This collection pays tribute to those artists that did.”
Trucking companies, container lines, and package delivery companies don’t put up with this urban pathology. It is shameful that the railroad industry has virtually surrendered to the graffiti assault— and that Wal-Mart is promoting it. One rail industry wag stated “at least someone is painting our cars, so they don’t rust!” Many of these graffiti creations involve hours of tedious work, often done by “tagger teams” -- so much for “homeland security” in our nation’s rail yards.
We wonder why the fine people at Union Pacific haven’t jumped on graffiti artists for licensing fees, as they so eagerly have done with legitimate model railroad manufactures. And why the Model Railroad Industry Association (MRIA) hasn’t encouraged Wal-Mart (and other large retailers) to carry a line of inexpensive (non-graffiti) trains, to introduce more Americans to The World’s Greatest Hobby.
Perhaps it will take rail enthusiasts and photographers to turn up the heat where railroads and model makers won’t. You can start by sending an e-mail with your views to Wal-Mart’s ethics department at ethics@walmart.com. And perhaps to your area railroad too, asking them why they tolerate trespassing and destruction of private property. The answers you get may be revealing.
-- Tom Nemeth --
Saturday, December 16, 2006
Appeals Court Verdict on MTH vs. Lionel case
This has to do with the MTH suit against Lionel for "stealing MTH trade secrets."
Following are 2 statements on this verdict; first the MTH statement, then the Lionel statement.
MTH Statement
6th Circuit Denies Lionel’s Request For Judgment In Its Favor, But Remands Case For New Trial
December 14, 2006 – The U.S. Court of Appeals for the Sixth Circuit today entered its decision in Lionel’s appeal of M.T.H.’s judgment against Lionel for willful misappropriation of M.T.H.’s trade secrets. The Sixth Circuit affirmed the trial court’s decision denying Lionel’s motion for judgment as a matter of law in favor of Lionel, but it reversed the trial court’s decision denying Lionel’s motion for a new trial and remanded the case for a retrial.
Significantly, the Sixth Circuit rejected Lionel’s argument that M.T.H. failed to specifically identify the trade secrets at issue, finding “the design drawings here are properly considered trade secrets even though they contain a mixture of secret information (e.g., dimensions, tolerances, and data-reference points) and non-secret information.” The Sixth Circuit also approved the trial court’s decision to admit forty-five exhibits that were English translations of documents generated during the South Korean investigation and judicial proceedings into the misappropriation of M.T.H.’s trade secrets.
“Obviously, we are very disappointed with the Court of Appeals’ decision to remand this case for a new trial, but the decision in no way vindicates Lionel for its actions” said M.T.H. founder and President Mike Wolf. “This has already been a long ordeal for everyone here at M.T.H., but the decision to remand the case for a new trial will not deter us from our relentless pursuit of justice. We have faith in the U.S. jury system. The jury got it right the first time, and we have no reason to believe it will not get it right a second time.”
Wolf added, “We are particularly disappointed the appeals court did not seem to consider the trial evidence concerning Lionel’s destruction of key documents, which led the trial judge to instruct the jury that it could infer from the failure of any party to produce a document that the document would be unfavorable to that party. We believe the jury verdict was influenced more by evidence of document destruction than by M.T.H.’s expert witness testimony.”
According to Wolf, the issue of document destruction will not go away during a retrial. He said the retrial could get “very interesting” because during Lionel’s bankruptcy case, Lionel sued its former chief engineer, Bob Grubba – one of Lionel’s star witnesses in the first trial – for working with a then current Lionel employee to obtain and use Lionel’s trade secrets for the benefit of another company, K-Line, for whom Grubba was working at the time. Lionel also accused Grubba of trying to cover his tracks by destroying key evidence of the scheme. MTH presented evidence of the same pattern of misappropriation and destruction of documents in its case against Lionel. “It is ironic that in the seven years since M.T.H. first filed its lawsuit against Lionel, M.T.H. has not received any compensation for its damages, while during that same period of time Lionel has taken control of and put out of business a 30-year old North Carolina competitor, without a trial, based on the very same claims of conduct by Lionel against Grubba and K-Line as M.T.H. claimed and proved against Lionel during a jury trial,” said Wolf.
Wolf did not rule out an out-of-court settlement of this long-running dispute, stating M.T.H. has always been willing to negotiate in good faith to resolve legal disputes, pointing to M.T.H.’s recent settlement of the lawsuit filed against it by Union Pacific, which benefited the entire model railroading industry. “Unfortunately, Lionel has refused thus far to acknowledge responsibility for any of its actions, leaving us no choice but to vigorously pursue our claim through the legal system. Maybe that mindset will change under Lionel’s current management.”
The Sixth Circuit’s decision does not have any impact on the trial court’s judgment entered against Lionel’s co-defendants Korea Brass Co., Ltd. and Yoo Chan Yang, collection of which M.T.H. is pursuing on several fronts.
Lionel Statement
From Jerry Calabrese, CEO of Lionel L. L. C.
At a time like this, I could say any number of things. Obviously, we feel relieved and happy. Even more important, we’re grateful that the US Sixth Circuit Court of Appeals clearly saw the real issues of law and evidence and supported our position that a significant injustice had been done by the earlier decision in favor of MTH. Rather than try to add my own poor remarks on matters of law, I prefer to let the wording of the court’s decision, handed down this morning, speak for itself.
From a personal standpoint, even though the past two years of living under the cloud of this lawsuit has been difficult, it has also been pretty uplifting. The steady and inspirational support of our fans and dealers has been a constant reminder of the love and respect that is invested in Lionel. As the people in charge of this great company, it’s also served as a constant reminder that our first and foremost responsibility is to live up to the Lionel brand and what it means to generations of Americans. Please be assured that we will.
Finally, thank all of you for your good wishes throughout this very difficult time.
Following are 2 statements on this verdict; first the MTH statement, then the Lionel statement.
MTH Statement
6th Circuit Denies Lionel’s Request For Judgment In Its Favor, But Remands Case For New Trial
December 14, 2006 – The U.S. Court of Appeals for the Sixth Circuit today entered its decision in Lionel’s appeal of M.T.H.’s judgment against Lionel for willful misappropriation of M.T.H.’s trade secrets. The Sixth Circuit affirmed the trial court’s decision denying Lionel’s motion for judgment as a matter of law in favor of Lionel, but it reversed the trial court’s decision denying Lionel’s motion for a new trial and remanded the case for a retrial.
Significantly, the Sixth Circuit rejected Lionel’s argument that M.T.H. failed to specifically identify the trade secrets at issue, finding “the design drawings here are properly considered trade secrets even though they contain a mixture of secret information (e.g., dimensions, tolerances, and data-reference points) and non-secret information.” The Sixth Circuit also approved the trial court’s decision to admit forty-five exhibits that were English translations of documents generated during the South Korean investigation and judicial proceedings into the misappropriation of M.T.H.’s trade secrets.
“Obviously, we are very disappointed with the Court of Appeals’ decision to remand this case for a new trial, but the decision in no way vindicates Lionel for its actions” said M.T.H. founder and President Mike Wolf. “This has already been a long ordeal for everyone here at M.T.H., but the decision to remand the case for a new trial will not deter us from our relentless pursuit of justice. We have faith in the U.S. jury system. The jury got it right the first time, and we have no reason to believe it will not get it right a second time.”
Wolf added, “We are particularly disappointed the appeals court did not seem to consider the trial evidence concerning Lionel’s destruction of key documents, which led the trial judge to instruct the jury that it could infer from the failure of any party to produce a document that the document would be unfavorable to that party. We believe the jury verdict was influenced more by evidence of document destruction than by M.T.H.’s expert witness testimony.”
According to Wolf, the issue of document destruction will not go away during a retrial. He said the retrial could get “very interesting” because during Lionel’s bankruptcy case, Lionel sued its former chief engineer, Bob Grubba – one of Lionel’s star witnesses in the first trial – for working with a then current Lionel employee to obtain and use Lionel’s trade secrets for the benefit of another company, K-Line, for whom Grubba was working at the time. Lionel also accused Grubba of trying to cover his tracks by destroying key evidence of the scheme. MTH presented evidence of the same pattern of misappropriation and destruction of documents in its case against Lionel. “It is ironic that in the seven years since M.T.H. first filed its lawsuit against Lionel, M.T.H. has not received any compensation for its damages, while during that same period of time Lionel has taken control of and put out of business a 30-year old North Carolina competitor, without a trial, based on the very same claims of conduct by Lionel against Grubba and K-Line as M.T.H. claimed and proved against Lionel during a jury trial,” said Wolf.
Wolf did not rule out an out-of-court settlement of this long-running dispute, stating M.T.H. has always been willing to negotiate in good faith to resolve legal disputes, pointing to M.T.H.’s recent settlement of the lawsuit filed against it by Union Pacific, which benefited the entire model railroading industry. “Unfortunately, Lionel has refused thus far to acknowledge responsibility for any of its actions, leaving us no choice but to vigorously pursue our claim through the legal system. Maybe that mindset will change under Lionel’s current management.”
The Sixth Circuit’s decision does not have any impact on the trial court’s judgment entered against Lionel’s co-defendants Korea Brass Co., Ltd. and Yoo Chan Yang, collection of which M.T.H. is pursuing on several fronts.
Lionel Statement
From Jerry Calabrese, CEO of Lionel L. L. C.
At a time like this, I could say any number of things. Obviously, we feel relieved and happy. Even more important, we’re grateful that the US Sixth Circuit Court of Appeals clearly saw the real issues of law and evidence and supported our position that a significant injustice had been done by the earlier decision in favor of MTH. Rather than try to add my own poor remarks on matters of law, I prefer to let the wording of the court’s decision, handed down this morning, speak for itself.
From a personal standpoint, even though the past two years of living under the cloud of this lawsuit has been difficult, it has also been pretty uplifting. The steady and inspirational support of our fans and dealers has been a constant reminder of the love and respect that is invested in Lionel. As the people in charge of this great company, it’s also served as a constant reminder that our first and foremost responsibility is to live up to the Lionel brand and what it means to generations of Americans. Please be assured that we will.
Finally, thank all of you for your good wishes throughout this very difficult time.
Wednesday, December 13, 2006
MTH negotiates Union Pacific licensing deal for model railroad industry
This news is already a month old, but not everyone is aware.
November 8, 2006
MTH negotiates Union Pacific licensing deal for industry
Mike Wolf, president and owner of MTH Electric Trains, has negotiated a new royalty-free licensing deal with the Union Pacific Railroad (UP) that covers to all model railroad manufacturers and their products in all scales.
"It was the right thing to do," Wolf said in an exclusive interview with Kalmbach Publishing Co., publisher of Model Retailer. Wolf said the deal, reached November 2, 2006, allows the royalty-free manufacture of UP-related model railroad products in perpetuity. "It's the best thing for the long-term health of the hobby," Wolf said.
Bob Turner, Senior Vice President Corporate Relations for UP, said, "Mike Wolf is to be commended for his commitment to the model railroad industry. His energy and passion helped us find a solution that will better reflect the positive relationship that Union Pacific and the model train industry have enjoyed for many years."
Union Pacific had sued MTH in 2005, stating MTH continued to produce Union Pacific-branded trains in violation of the railroad's 2002 licensing program. That program demanded a 3% royalty on all model railroad products bearing Union Pacific and merged-road logos or a 1/2% payment based on total sales of model railroad products. The program also required manufacturers to reveal to Union Pacific their business strategies for Union Pacific models, including marketing budgets, manufacturing details, distribution channels, and sales goals.
Rather than give in, MTH chose to defend itself on principle. "It was wrong. They [Union Pacific] had supported us in our manufacturing efforts, and we spent $5 million in tooling just for their trains, like the Big Boy, Challenger, and turbines," Wolf said.
The new agreement covers all model railroad manufacturers, including MTH rivals Lionel and Broadway Limited. Companies making model trains will need to contact UP to learn specifics and to be covered under the new program, Wolf said. Under the terms of the agreement, manufacturers must continue to use professional materials and maintain high standards when creating Union Pacific-branded trains.
The agreement covers not only historic road names, such as the Southern Pacific and Chicago North Western, but all future Union Pacific logos and slogans.
Wolf said that sales of MTH locomotives and cars in Union Pacific colors had dropped noticeably as negative publicity toward the licensing program grew. He now foresees sales of Union Pacific branded model trains returning to their pre-licensing levels.
- Neil Besougloff, Editor, Classic Toy Trains magazine
November 8, 2006
MTH negotiates Union Pacific licensing deal for industry
Mike Wolf, president and owner of MTH Electric Trains, has negotiated a new royalty-free licensing deal with the Union Pacific Railroad (UP) that covers to all model railroad manufacturers and their products in all scales.
"It was the right thing to do," Wolf said in an exclusive interview with Kalmbach Publishing Co., publisher of Model Retailer. Wolf said the deal, reached November 2, 2006, allows the royalty-free manufacture of UP-related model railroad products in perpetuity. "It's the best thing for the long-term health of the hobby," Wolf said.
Bob Turner, Senior Vice President Corporate Relations for UP, said, "Mike Wolf is to be commended for his commitment to the model railroad industry. His energy and passion helped us find a solution that will better reflect the positive relationship that Union Pacific and the model train industry have enjoyed for many years."
Union Pacific had sued MTH in 2005, stating MTH continued to produce Union Pacific-branded trains in violation of the railroad's 2002 licensing program. That program demanded a 3% royalty on all model railroad products bearing Union Pacific and merged-road logos or a 1/2% payment based on total sales of model railroad products. The program also required manufacturers to reveal to Union Pacific their business strategies for Union Pacific models, including marketing budgets, manufacturing details, distribution channels, and sales goals.
Rather than give in, MTH chose to defend itself on principle. "It was wrong. They [Union Pacific] had supported us in our manufacturing efforts, and we spent $5 million in tooling just for their trains, like the Big Boy, Challenger, and turbines," Wolf said.
The new agreement covers all model railroad manufacturers, including MTH rivals Lionel and Broadway Limited. Companies making model trains will need to contact UP to learn specifics and to be covered under the new program, Wolf said. Under the terms of the agreement, manufacturers must continue to use professional materials and maintain high standards when creating Union Pacific-branded trains.
The agreement covers not only historic road names, such as the Southern Pacific and Chicago North Western, but all future Union Pacific logos and slogans.
Wolf said that sales of MTH locomotives and cars in Union Pacific colors had dropped noticeably as negative publicity toward the licensing program grew. He now foresees sales of Union Pacific branded model trains returning to their pre-licensing levels.
- Neil Besougloff, Editor, Classic Toy Trains magazine
Tuesday, December 12, 2006
A cover-up in Manville...
(Train sightings on 12/02/06)
of one of the identifying landmarks found along the Lehigh Line in Manville (NJ). It is the water tower with the word "Manville" painted on the top. It is currently being repainted and was wrapped in plastic. I say "...was wrapped..." because after Friday night's gusty winds, it is now partially wrapped. When NS 11J passed by, workers were busy on the scaffolding reattaching the plastic sheets. As for the trains that passed by my location, by time sequence, they were:
NS 21M @ 8:15-Power was NS 2749, NS 2751 and PRR 8316 (C40-8W, ex-CR 6056).
NS 24Z(?) @ 9:05-NS 9691 and BNSF 4845 was in charge of the eastbound intermodal.
NS 11J @ 9:25-UP 4932 and NS 7615 would finally be on the move once again. Around 7:15, 11J would hold near the waterworks due to problems with NS 7615. The power would be reversed using the Roycefield Runner making UP 4932 the leader for the remainder of the trip.
CSX Q300 @ 10:15-with CSX 8118 and CSX 8860 would depart Manville yard with thirty loads and twenty-seven empties.
NS 202 @ 10:25 came east with NS 3536 and NS 3552. NS 24V @ 10:35 would follow short after with NS 2671 and NS 9632 for power.
NS 213(?) @ 10:45-after 24V passed, NS 7107, NS 3529 and NS 6617 would continue its westward journey.
--
of one of the identifying landmarks found along the Lehigh Line in Manville (NJ). It is the water tower with the word "Manville" painted on the top. It is currently being repainted and was wrapped in plastic. I say "...was wrapped..." because after Friday night's gusty winds, it is now partially wrapped. When NS 11J passed by, workers were busy on the scaffolding reattaching the plastic sheets. As for the trains that passed by my location, by time sequence, they were:
NS 21M @ 8:15-Power was NS 2749, NS 2751 and PRR 8316 (C40-8W, ex-CR 6056).
NS 24Z(?) @ 9:05-NS 9691 and BNSF 4845 was in charge of the eastbound intermodal.
NS 11J @ 9:25-UP 4932 and NS 7615 would finally be on the move once again. Around 7:15, 11J would hold near the waterworks due to problems with NS 7615. The power would be reversed using the Roycefield Runner making UP 4932 the leader for the remainder of the trip.
CSX Q300 @ 10:15-with CSX 8118 and CSX 8860 would depart Manville yard with thirty loads and twenty-seven empties.
NS 202 @ 10:25 came east with NS 3536 and NS 3552. NS 24V @ 10:35 would follow short after with NS 2671 and NS 9632 for power.
NS 213(?) @ 10:45-after 24V passed, NS 7107, NS 3529 and NS 6617 would continue its westward journey.
--
Thursday, December 07, 2006
Coupon Savings
Print the following coupon and bring it into the store for 10% savings.
Good only on items with a white price tag. Limit one item per purchase. In stock items only. Expires 12/31/06.
To print: right click on coupon, select Print Picture from drop down menu, then print.
Good only on items with a white price tag. Limit one item per purchase. In stock items only. Expires 12/31/06.
To print: right click on coupon, select Print Picture from drop down menu, then print.
Tuesday, December 05, 2006
Holiday Greetings by NS and CSX
Received the following via email from a Conrail fan.
Different. I like the animated nighttime train-in-the-snow graphic at the very end of the NS effort. And yes, those are snowflakes that begin falling all around the train, though my aging eyes at FIRST thought they were little white dollar signs showering the right-of-way (you can make them 'drift' left or right by moving your cursor backand forth across the center of the frame -- only TheThoroughbred of Transportation puts YOU in control ofthe weather!).
http://www.nscorp.com:80/nscorphtml/holiday/index.html
My 'wish' was for NS to use more Conrail Blue in their greetings and, well, this may be the ONLY time you will ever see the head of Topper the Horse appear in a Conrail BLUE NS logo! You aren't likely to ever see the throttle of an NS mixed-freight train being set at 100 mph again, either. And, finally, is that REALLY a Southern Railway unit, running long hood-forward, on the wrapping paper at the very beginning?
The CSX 'holliday greeting' on their home page is here:
http://www.csx.com/
Note the occasional large, passing snowflake made up of two different 'scales' of locomotive silhouettes. There does not appear to be a number board/headlight overhangin front of the cab: must be a former WM chop-nosed Geep! The dark blue in the CSX nighttime scene is obviously of C&O/B&O derivation, but the "OUR VISION" header is, to my eyes, lettered in Conrail Blue...
Different. I like the animated nighttime train-in-the-snow graphic at the very end of the NS effort. And yes, those are snowflakes that begin falling all around the train, though my aging eyes at FIRST thought they were little white dollar signs showering the right-of-way (you can make them 'drift' left or right by moving your cursor backand forth across the center of the frame -- only TheThoroughbred of Transportation puts YOU in control ofthe weather!).
http://www.nscorp.com:80/nscorphtml/holiday/index.html
My 'wish' was for NS to use more Conrail Blue in their greetings and, well, this may be the ONLY time you will ever see the head of Topper the Horse appear in a Conrail BLUE NS logo! You aren't likely to ever see the throttle of an NS mixed-freight train being set at 100 mph again, either. And, finally, is that REALLY a Southern Railway unit, running long hood-forward, on the wrapping paper at the very beginning?
The CSX 'holliday greeting' on their home page is here:
http://www.csx.com/
Note the occasional large, passing snowflake made up of two different 'scales' of locomotive silhouettes. There does not appear to be a number board/headlight overhangin front of the cab: must be a former WM chop-nosed Geep! The dark blue in the CSX nighttime scene is obviously of C&O/B&O derivation, but the "OUR VISION" header is, to my eyes, lettered in Conrail Blue...
Sunday, December 03, 2006
Starting off Friday with some orange juice...
(Train sightings on 11/24/06)
was a good way to start this morning of railfanning the Lehigh Line near Manville.
In sequence by time, the trains observed were as follows:
CSX K650 @ 7:45-CSX 8725 (SD60I, ex-CR 5583) and NYC 7496 (C40-8, ex-CR 6040). Just an observation as I thought it was unusual to see this ex-CR unit as the second unit. Most of my juice train sightings have featured newer power.
was a good way to start this morning of railfanning the Lehigh Line near Manville.
In sequence by time, the trains observed were as follows:
CSX K650 @ 7:45-CSX 8725 (SD60I, ex-CR 5583) and NYC 7496 (C40-8, ex-CR 6040). Just an observation as I thought it was unusual to see this ex-CR unit as the second unit. Most of my juice train sightings have featured newer power.
CSX Q418 @ 9:20-not sure of this train's symbol that had for power CSX 8747 (SD60I, ex-CR 5635), CSX 4705 (SD70MAC), CSX 324 (AC44CW) and CSX 5341 (ES44DC).
NS 18N @ 9:35-compared with previous autorack trains, this one was a short one. Power for this train was NS 9149 (C40-9W) and BNSF 4976 (C44-9W).
NS 212 @ 10:05-featured a quartet of "old timers". A trio of B32-8's, NS 3536, NS 3563 and NS 3552, along with GP60 7112. Slotted in on this train were some CSX intermodal cars, something I hadn't seen previously.
NS 18G @ 10:30-had NS 9395 (C40-9W), NS 9265 (C40-9W) and two SD45-2s, NS 1700 and NS 1702, for the power consist.
CSX Q300 @ 10:45-finished its work at Manville yard and headed east with 2,300 tons and 1,800 feet of freight. Power would be CSX 7683 (C40-8W), CSX 5964, CSX 4403 (GP40-2, ex-CR 3286) and CSX 1562 (GP15-1, ex-CR 1678).
After Thanksgiving's feast, I might consider this a feast, with no concern about all those calories, for the eyes. Hope that your day after Thanksgiving is just as good!
Tuesday, November 28, 2006
Santa Claus Train
The Santa Train
This is a great trip! Highly recommended.
This years trip will be held Saturday, December 9, 2006.
The Jersey Central Chapter, in conjunction with Santa and Mrs. Claus, operates a Santa Claus Special for the kids. This year the trip will run on Saturday, December 9, 2006. The train departs from Raritan at 8:30 AM and also from the eastbound platform (off South Avenue) of the Westfield Station in Westfield at 9:00 AM and 1:00 PM. There is no afternoon departure from Raritan. The trip features Santa Claus and Mrs. Claus along with a few of Santa's helpers. There are sing-a-longs, candy canes and coloring books for the kids. In addition, each car on the train features a drawing for a trainset; that's ten train sets per trip!
The train operates west from Westfield to Highbridge, NJ and back, a two hour trip. Santa pays a visit to each car and is more than happy to pose for pictures with the kids.
This year, tickets are only $12.00 for adults and $10.00 for children under 12.
We have tickets available in the store. Cash or personal check made out to the Jersey Central Railroad Historical Society. Sorry, no credit cards for train tickets. Seating is Limited! Get your tickets now. Any available tickets will be sold at the Westfield Station the day of the trip, but there will be a $1.00 surcharge per ticket. No credit card purchases will be available the day of the trip, cash or check only.
Tickets also available at: www.santatrain.net (Be sure to use .net and not .com)
BNSF Recognized by GI Jobs Magazine
"BNSF was recognized by GI Jobs Magazine as one of America’s Top 25 Most Military Friendly Employers."
- In 2005 alone, BNSF Railway hired over 750 veterans.
- Year to date 2006, 20 percent of all hires - over 900 - are veterans with over 150 serving as members of the Guard and Reserve.
- If present trends continue, BNSF is on track to hire more than 1,000 veterans in 2006.
To find out more about what BNSF does to help our Military Families:
www.bnsf.com/careers/military/index.html
Monday, November 27, 2006
Atlas O Rolling Stock on Sale
We have the following Atlas O items on sale at 20% off list price. All are new, in original boxes.
Limited to items in this list. Subject to prior sale. Come in and get them before they are gone. Phone orders accepted.
Limited to items in this list. Subject to prior sale. Come in and get them before they are gone. Phone orders accepted.
8505-1 40'Steel Reefer "Bar Bee" $43.95
6972-3 89' Flat Car "Providence and Worchester" $55.95
6972-4 89' Flat Car "Providence and Worchester" $55.95
6955-9 45' Pines Trailer, Dallas "front runner $55.95
6955-3 45' Pines Trailer, "Memphis" front runner $55.95
6955-2 45' Pines Trailer, "Fort Worth" front runner $55.95
6955-1 45' Pines Trailer, "Chicago" front runner $55.95
6271-1 GSC Pulpwood Flatcar BN $39.95
6277-2 GSC Pulpwood Flatcar Atlantic Coast Line $39.95
6577-1 50' PS1 Boxcar Seaboard $39.95
6501-2 Evans 53' Double Plug Door Boxcar B&M $39.95
6514-1 Evans 53' Double Plug Door Boxcar Aloha Shake $39.95
8016-1 36' Woodside Reefer Cudahy Puritan $47.75
6309-2 3 bay Cylindrical Hopper, Sterling Salt SHPX $39.95
6355-2 GATX Airside Covered Hopper, Firestone $39.95
6385-2 PS 4427 Low Side Covered Hopper, Producers Grain $47.95
6674-1 International NE-6 Caboose, Penn Central $55.95
6477-1 USRA Single Sheathed Boxcar PRR Lines $39.95
6972-3 89' Flat Car "Providence and Worchester" $55.95
6972-4 89' Flat Car "Providence and Worchester" $55.95
6955-9 45' Pines Trailer, Dallas "front runner $55.95
6955-3 45' Pines Trailer, "Memphis" front runner $55.95
6955-2 45' Pines Trailer, "Fort Worth" front runner $55.95
6955-1 45' Pines Trailer, "Chicago" front runner $55.95
6271-1 GSC Pulpwood Flatcar BN $39.95
6277-2 GSC Pulpwood Flatcar Atlantic Coast Line $39.95
6577-1 50' PS1 Boxcar Seaboard $39.95
6501-2 Evans 53' Double Plug Door Boxcar B&M $39.95
6514-1 Evans 53' Double Plug Door Boxcar Aloha Shake $39.95
8016-1 36' Woodside Reefer Cudahy Puritan $47.75
6309-2 3 bay Cylindrical Hopper, Sterling Salt SHPX $39.95
6355-2 GATX Airside Covered Hopper, Firestone $39.95
6385-2 PS 4427 Low Side Covered Hopper, Producers Grain $47.95
6674-1 International NE-6 Caboose, Penn Central $55.95
6477-1 USRA Single Sheathed Boxcar PRR Lines $39.95
Model Train Show
2006 Annual Light & Sound Show
The Model Railroad Club, Inc. in Union, NJ, is having their annual train show the following dates and times:
- Friday, Dec. 1 & 8 : 7pm - 10 pm
- Saturday, Dec. 2 & 9 : 10am - 8pm
- Sunday, Dec. 3 & 10 : 11am - 6pm
If you have never been or have not been for a few years, you really should see this show and check out the progress on the new section. We have flyers in the store with details on how to find the layout building. Or you could call 908-964-8808. Or you could check their web site at www.tmrci.org
Thursday, November 23, 2006
Black Friday - Christmas Shopping at the Big Little Railroad Shop
Avoid the crowds at the malls by coming to the Big Little Railroad Shop in downtown Somerville on "Black Friday." We have all sorts of wonderful model railroad items from full sets to individual cars, locomotives, track, buildings, scenery supplies, etc. And if you don't know exactly what to get your modeler, we have gift certificates. We also carry books, videos, and calendars. We have items in all the popular scales: G, O, HO, N, and Z. And, if we don't have what you want in stock, we probably can order it for you.
For your holiday shopping convenience we are open the following hours through Christmas:
Tuesday – Wednesday 11 AM - 7 PM
Thursday - Friday 11 AM -8 PM
Saturday 11 AM - 5 PM
Sunday 12 noon - 4 PM
For your holiday shopping convenience we are open the following hours through Christmas:
Tuesday – Wednesday 11 AM - 7 PM
Thursday - Friday 11 AM -8 PM
Saturday 11 AM - 5 PM
Sunday 12 noon - 4 PM
President of NYS&W Agrees to Fine
Following article from the AP about Walter Rich. Kind of reminds me of the 1800's when railroad tycoons bought influence with the politicians of the day.
Railroad Executive Agrees to $75,000 Fine in Lobbying Probe
Mon November 20, 2006 3:52 p.m. ET
By MARK JOHNSON the Associated Press
ALBANY, N.Y. (AP) - Railroad executive Walter Rich agreed to pay a $75,000 fine to settle an investigation into lavish Baseball Hall of Fame induction events he hosts annually for state officials, lobbyists and others at his Cooperstown mansion, his lawyer said Monday.
James Featherstonhaugh said Rich admitted no wrongdoing in the settlement with the state Lobbying Commission. The commission is slated to approve the settlement at its meeting Tuesday.
Lobbying commission Executive Director David Grandeau declined comment.
The commission was looking into whether Rich, president of the New York Susquehanna and Western Railway Corp., provided illegal gifts to state officials.
Included on the guest list for the past two Hall of Fame weekends were state assemblymen Peter Abbate and Steven Cymbrowitz; Gov. George Pataki’s senior policy adviser, Jeff Lovell; State University of New York Chancellor Robert King; state Transportation Commissioner Thomas Madison; and Steven Boggess, secretary of the state Senate, according to records obtained by the commission.
The railway spends about $100,000 each year providing lodging, lunches, dinners and tickets to baseball games to various politicians, lobbyists, state officials and others, according to a report from Attorney General Eliot Spitzer and the state Inspector General’s Office. That report spurred the lobbying commission to begin its investigation last year.New York’s laws prohibit a lobbyist or client from offering or giving gifts valued at more than $75 per year to any individual.
Rich’s lawyers had argued that the events associated with the Hall of Fame weekend are exempt from investigation by the commission because they were political and charitable fundraising events, not lobbying.
Events in recent years have raised funds for Republican politicians including Pataki, state Sen. James Seward and U.S. Rep. Sherwood Boehlert as well as the Salvation Army, according to a ruling by Acting Supreme Court Justice Thomas McNamara, who earlier this year ordered Rich to testify before the commission.
Railroad Executive Agrees to $75,000 Fine in Lobbying Probe
Mon November 20, 2006 3:52 p.m. ET
By MARK JOHNSON the Associated Press
ALBANY, N.Y. (AP) - Railroad executive Walter Rich agreed to pay a $75,000 fine to settle an investigation into lavish Baseball Hall of Fame induction events he hosts annually for state officials, lobbyists and others at his Cooperstown mansion, his lawyer said Monday.
James Featherstonhaugh said Rich admitted no wrongdoing in the settlement with the state Lobbying Commission. The commission is slated to approve the settlement at its meeting Tuesday.
Lobbying commission Executive Director David Grandeau declined comment.
The commission was looking into whether Rich, president of the New York Susquehanna and Western Railway Corp., provided illegal gifts to state officials.
Included on the guest list for the past two Hall of Fame weekends were state assemblymen Peter Abbate and Steven Cymbrowitz; Gov. George Pataki’s senior policy adviser, Jeff Lovell; State University of New York Chancellor Robert King; state Transportation Commissioner Thomas Madison; and Steven Boggess, secretary of the state Senate, according to records obtained by the commission.
The railway spends about $100,000 each year providing lodging, lunches, dinners and tickets to baseball games to various politicians, lobbyists, state officials and others, according to a report from Attorney General Eliot Spitzer and the state Inspector General’s Office. That report spurred the lobbying commission to begin its investigation last year.New York’s laws prohibit a lobbyist or client from offering or giving gifts valued at more than $75 per year to any individual.
Rich’s lawyers had argued that the events associated with the Hall of Fame weekend are exempt from investigation by the commission because they were political and charitable fundraising events, not lobbying.
Events in recent years have raised funds for Republican politicians including Pataki, state Sen. James Seward and U.S. Rep. Sherwood Boehlert as well as the Salvation Army, according to a ruling by Acting Supreme Court Justice Thomas McNamara, who earlier this year ordered Rich to testify before the commission.
Tuesday, November 21, 2006
Lionel trains for Christmas
Need a Christmas gift for someone with a Lionel train set? We have several different Christmas themed cars that could suit your needs. For example, we have an animated caboose with Santa waving from the rear platform. We have a Christmas present dump car. We have a number of other cars decorated for Christmas. We also have Lionel add-on sets with 3 cars plus additional track, both Christmas themed and regular train themed.
Don't have any Lionel equipment yet. We have complete sets of various sizes and themes, including a Thomas the Tank Engine set.
And, if we don't have what you are looking for, we can order it for you. We are an authorized Lionel dealer. But come in soon if you need it for Christmas.
Don't have any Lionel equipment yet. We have complete sets of various sizes and themes, including a Thomas the Tank Engine set.
And, if we don't have what you are looking for, we can order it for you. We are an authorized Lionel dealer. But come in soon if you need it for Christmas.
Sunday, November 05, 2006
50% off Shelf
Located in the back of the store are shelves with items that are 50% off list price. Stock changes continuously, so come in often to check out the bargins. While you are at it, check out the regular stock. You just might see something you want. And if you don't see it, ask. We can special order almost anything.
Located in the back of the store are shelves with items that are 50% off list price. Stock changes continuously, so come in often to check out the bargins. While you are at it, check out the regular stock. You just might see something you want. And if you don't see it, ask. We can special order almost anything.
Thursday, November 24, 2005
Black Friday - Christmas Shopping at the Big Little Railroad Shop
Avoid the crowds at the malls by coming to the Big Little Railroad Shop in downtown Somerville on "Black Friday." We have all sorts of wonderful model railroad items from full sets to individual cars, locomotives, track, buildings, scenery supplies, etc. And if you don't know exactly what to get your modeler, we have gift certificates. We also carry books, videos, and calendars. We have items in all the popular scales: G, O, HO, N, and Z. And, if we don't have what you want in stock, we probably can order it for you.
For your holiday shopping convenience we are open the following hours through Christmas:
Tuesday - Friday 11AM - 7PM
Saturday 11AM - 5PM
Sunday 12noon - 4PM
Saturday, October 22, 2005
New product lines – Trains, Planes, Ships, Automobiles, Military Vehicles
In addition to a full line of model railroading “stuff,” The Big Little Railroad Shop is now carrying plastic model kits for airplanes, ships, automobiles, and military vehicles. We also 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.
Wednesday, September 21, 2005
Canadian Pacific Changes in New Jersey
Sunday, September 17th, 2005 at 09:20 EDT
Effective Thursday, September 1st, 2005, Canadian Pacific closed their intermodal terminal at Oak Island Yard in Newark, NJ. The reason cited for closing the facility was that the business never developed enough to justify the costs. Additionally, the intermodal business never rebounded after the 1996 flood at Solomon's Gap, PA. During this period Canadian Pacific gave Conrail their intermodal traffic to move while the Lehigh Line was being rebuilt. Canadian Pacific subsequently lost most of this traffic to Conrail. Concurrent with this closing, Canadian Pacific entered into an agreement with Norfolk Southern to handle their remaining intermodal business at Dockside, NJ. Norfolk Southern will now move this traffic between Dockside, NJ and Allentown, PA as a block on their existing network. This agreement is similar to the reciprocal operation which the two carriers have in effect between Harrisburg, PA and Philadelphia, PA where Canadian Pacific handles an intermodal block for Norfolk Southern between these two points. As a result, Canadian Pacific train 166 (Norfolk Southern symbol 38T) now terminates at Bethlehem, PA, while Canadian Pacific train 167 (Norfolk Southern symbol 39T) now originates at Bethlehem, PA. Canadian Pacific will now concentrate on handling bulk freight and the Transload America demolition debris traffic to and from Oak Island Yard in Newark, NJ. This traffic will now move in the form of a road local, symbolled as Canadian Pacific train D18 from Allentown, PA to Oak Island, NJ and as train D17 from Oak Island, NJ to Allentown, PA. It is still unclear what symbol Norfolk Southern will assign to these trains. These locals will run as needed, although it is expected that they will initially run close to the old three day per week schedule in order to connect with trains 166/167 at Bethlehem, PA. It is anticipated that this traffic will eventually connect to and from Canadian Pacific trains 410 and 411 at Allentown, PA. It is currently projected that the frequency of trains D17 and D18 will ultimately increase to five or six days per week in order to handle the expected increase in the lucrative construction and demolition debris business.
Effective Thursday, September 1st, 2005, Canadian Pacific closed their intermodal terminal at Oak Island Yard in Newark, NJ. The reason cited for closing the facility was that the business never developed enough to justify the costs. Additionally, the intermodal business never rebounded after the 1996 flood at Solomon's Gap, PA. During this period Canadian Pacific gave Conrail their intermodal traffic to move while the Lehigh Line was being rebuilt. Canadian Pacific subsequently lost most of this traffic to Conrail. Concurrent with this closing, Canadian Pacific entered into an agreement with Norfolk Southern to handle their remaining intermodal business at Dockside, NJ. Norfolk Southern will now move this traffic between Dockside, NJ and Allentown, PA as a block on their existing network. This agreement is similar to the reciprocal operation which the two carriers have in effect between Harrisburg, PA and Philadelphia, PA where Canadian Pacific handles an intermodal block for Norfolk Southern between these two points. As a result, Canadian Pacific train 166 (Norfolk Southern symbol 38T) now terminates at Bethlehem, PA, while Canadian Pacific train 167 (Norfolk Southern symbol 39T) now originates at Bethlehem, PA. Canadian Pacific will now concentrate on handling bulk freight and the Transload America demolition debris traffic to and from Oak Island Yard in Newark, NJ. This traffic will now move in the form of a road local, symbolled as Canadian Pacific train D18 from Allentown, PA to Oak Island, NJ and as train D17 from Oak Island, NJ to Allentown, PA. It is still unclear what symbol Norfolk Southern will assign to these trains. These locals will run as needed, although it is expected that they will initially run close to the old three day per week schedule in order to connect with trains 166/167 at Bethlehem, PA. It is anticipated that this traffic will eventually connect to and from Canadian Pacific trains 410 and 411 at Allentown, PA. It is currently projected that the frequency of trains D17 and D18 will ultimately increase to five or six days per week in order to handle the expected increase in the lucrative construction and demolition debris business.
Tuesday, September 20, 2005
Bizarre Accident on Conrail North Jersey Shared Assets
Saturday, September 17th, 2005 at 20:00 EDT
At approximately 03:40 this morning northbound CSXT train Q-418-16 operating from Pavonia Yard in Camden, NJ to Selkirk, NY was involved in a bizarre vehicular accident. Train Q-418-16 powered by CSXT 9023, CSXT 8667, and HLCX 8141 and consisting of two loads and fifty-five empties that totaled 2,320 tons was struck by a garbage truck that crashed through a guard rail and off an overpass down onto the train. The accident occurred at Paterson Plank Road in North Bergen, NJ located at milepost QRN 1 on the Northern Branch. The truck crashed into the 41st car in the car in the train, PLMX 35190, an empty haz-mat car containing residue liquefied petroleum gas. Luckily, the car did not leak and there was no explosion. Unfortunately, both the driver and passenger were fatalities. The mishap shut down all rail traffic through the area for several hours resulting in delays to many trains.
At approximately 03:40 this morning northbound CSXT train Q-418-16 operating from Pavonia Yard in Camden, NJ to Selkirk, NY was involved in a bizarre vehicular accident. Train Q-418-16 powered by CSXT 9023, CSXT 8667, and HLCX 8141 and consisting of two loads and fifty-five empties that totaled 2,320 tons was struck by a garbage truck that crashed through a guard rail and off an overpass down onto the train. The accident occurred at Paterson Plank Road in North Bergen, NJ located at milepost QRN 1 on the Northern Branch. The truck crashed into the 41st car in the car in the train, PLMX 35190, an empty haz-mat car containing residue liquefied petroleum gas. Luckily, the car did not leak and there was no explosion. Unfortunately, both the driver and passenger were fatalities. The mishap shut down all rail traffic through the area for several hours resulting in delays to many trains.
Tuesday, August 30, 2005
New Book Announced – Rails Across New England – Volume I
Railroad Explorer magazine has announced a new, all-color book to be published in November 2005. Rails Across New England – Volume I will cover the northern New England states of Maine, New Hampshire, and Vermont during the period 1989 – 1999. Volume II, to be published at a future date, will cover the southern New England states of Massachusetts, Connecticut, and Rhode Island during the same period.
This will be a 128-page, all-color, soft cover book in landscape (horizontal) format. Over 250 photos reproduced from original color slides by over thirty of New England’s best railroad photographers. Retail cover price is $39.95.
If you are interested in this book, please call, write, or stop in to reserve a copy.
This will be a 128-page, all-color, soft cover book in landscape (horizontal) format. Over 250 photos reproduced from original color slides by over thirty of New England’s best railroad photographers. Retail cover price is $39.95.
If you are interested in this book, please call, write, or stop in to reserve a copy.
Monday, August 01, 2005
Store Now Open in New Location
The Big Little Railroad Shop is now open in our new location in Somerville, NJ.
63 W. Main Street
Somerville, NJ 08876
Phone: 908-685-8892
Please stop in and check us out.
63 W. Main Street
Somerville, NJ 08876
Phone: 908-685-8892
Please stop in and check us out.
Great Tourist Train in middle of Pennsylvania
Press Release from the EAST BROAD TOP RAILROAD.
Ride the only narrow gauge steam railroad east of the Mississippi, and only a 3 hour day trip from Pittsburgh in Orbisonia, PA! The EAST BROAD TOP RAILROAD, named a National Historic Landmark in 1964, runs three steam excursions daily on Saturdays and Sundays with historic passenger cars and caboose, all original to the railroad. Just across the tracks visit the Rockhill Trolley Museum, Pennsylvania’s oldest operating trolley museum. Within a short drive from Orbisonia in the coal mining town of Robertsdale, visit the Friends of the East Broad Top Railroad museum in the Robertsdale train station and the Broad Top Area Coal Miners museum just up the street. This is a great day trip (3 hours from Pittsburgh), so take a picnic lunch and get off the train at Colgate Grove, and come back on the train two hours later!
www.ebtrr.com or call 814-447-3011 or 412-259-8020.
Ride the only narrow gauge steam railroad east of the Mississippi, and only a 3 hour day trip from Pittsburgh in Orbisonia, PA! The EAST BROAD TOP RAILROAD, named a National Historic Landmark in 1964, runs three steam excursions daily on Saturdays and Sundays with historic passenger cars and caboose, all original to the railroad. Just across the tracks visit the Rockhill Trolley Museum, Pennsylvania’s oldest operating trolley museum. Within a short drive from Orbisonia in the coal mining town of Robertsdale, visit the Friends of the East Broad Top Railroad museum in the Robertsdale train station and the Broad Top Area Coal Miners museum just up the street. This is a great day trip (3 hours from Pittsburgh), so take a picnic lunch and get off the train at Colgate Grove, and come back on the train two hours later!
www.ebtrr.com or call 814-447-3011 or 412-259-8020.
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