Model Railroading In The News #23

Issue #23 of Model RR In The News is packed with articles from around the country. 

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Baltimore Sun Runs Article About MTH vs. Lionel

The Baltimore Sun ran an article about the MTH vs. Lionel case.  The article contains quotes from Lionel's CEO, Jerry Calabrese, the lead attorney for MTH and Tom McComas of TM Books & Video.  Read it here.

Lionel 2007 Volume 2 Catalog Available on 8/1/07

According to Lionel's website, the countdown timer in the upper right corner announces that the 2007 Volume 2 Catalog will be available on 8/1/07.

CEO Used Company Funds To Buy $1M Worth of Trains

According to an article in the Pittsburgh Tribune-Review, the CEO of LeNature's, a company that bottled water, tea and fruit drinks, amassed a huge collection of modern Lionel trains at the company's expense.  CEO Gregory Podlucky wasn't so lucky because he ran LeNature's into bankruptcy.  His huge collection, which is estimated to fill two tractor trailers, will be auctioned off as one lot for the US Bankruptcy Court in Pittsburgh, PA on Aug. 21, 2007.  One bidder, Scott Griggs of Trainz.com, has agreed to buy the collection for $575,000 if no one bids higher.  Public bidding for the collection starts at $590,000.  In the article, Mr. Griggs stated he would start selling the collection on Trainz.com in September if his bid is successful.  The article also states that AmbroseBauer Trains considered making a bid but decided not to because they believe the collection to be worth only $375,000.   View the Pittsburgh Tribune-Review article here.  View the 85 page list of items in the collection here (5MB file size).

A Familiar Story With A Few Mistakes

I found an article on the Advertiser-Tribune website, a newspaper out of Tiffin, Ohio, about a man and his trains.  It's a familiar story - man buys trains when he is a young boy, trains get packed in storage for years, man retires and breaks out old trains and builds his dream layout.  It's a nice read but there are two mistakes concerning Lionel trains contained in the article.  See if you can find them.  You can read the article here.

Best Friend of Charleston

Lionel is offering a replica of the "Best Friend of Charleston" steam locomotive as a special "on-line" exclusive.  The steam locomotive was built in 1830 for the South Carolina Canal and Railroad company.  Lionel is offering the locomotive with a tender and one passenger car for $349.99.  An add-on passenger car is also available for $64.99.  Learn more about the real Best Friend of Charleston here.  View Lionel's version here.

New Announcement from Ready Made Trains

READY MADE TRAINS, LLC introduces 7 new roadnames to the COAL HOPPER series of "Ready Made Toys" 0/0-27 scale toy trains... freight cars suitable for both the steam and diesel era with railroad names to represent old favorites, 'fallen flags', shortlines, and today's newest regional carriers and mega-railroads as the listing grows.

The following 7 additional  roadnames, each with 2 different roadnumbers per railroad, will now be offered with delivery starting Fall, 2007:

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Lenny Dean, Lionel Employee For 60 Years, Passes At Age 81

Lenny Dean was an employee of Lionel for nearly 60 years.  He played an instrumental role in Lionel's service department for many years and helped Lionel move production from New Jersey to Michigan after General Mills purchased the rights to make and sell Lionel trains.   Mr. Dean's years of service, his knowledge of Lionel trains and his relationship with collectors made him a very popular figure within the O Gauge community.   Angela Trotta Thomas featured Mr. Dean in one of her works to celebrate his 60 years of service with Lionel.  Check it out here.  Read the letter sent to dealers by Lionel's president Gary L. Moreau announcing Mr. Dean's retirement here.  Classic Toy Trains magazine ran an article announcing Mr. Dean's death here and Mr. Dean's obituary can be found here.

UPDATE:  Sources tell me that the wake was very well attended.  Numerous floral arrangements including one in the shape of Lionel's Circle L logo.  On display was the Lionel Lenny Dean boxcar and Angela Trotta Thomas' LIFE cover of Lenny along with letters to/about Mr. Dean from Lionel.  Lionel also posted a tribute to Mr. Dean on their website here.

Polar Express and Pennsylvania Flyer Starter Sets Cheap!

The Home Decorators Outlet web site has Lionel's Polar Express set on sale for an incredibly low price of $131.99.  They also have the Pennsylvania Flyer Starter set for a very low price of only $90.99.  The site says "Quantities are limited" so act fast if you want one of the sets.

MTH Lionel Update: Parties In Settlement Talks by Erol Gurcan

Attorneys for both MTH and Lionel were back in a New York Bankruptcy Court on July 10th. Both MTH's Mike Wolf and Lionel's Jerry Calabrese were present. I was present for part of the day.

On the docket were several items, including Lionel's motions seeking court approval to pay its lawyers and accountants etc. the fees earned between January 1, 2007 to April 30, 2007. These motions were unopposed. Judge Lifland approved all of them and entered an order to that effect.

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Train Collectors Association "TCA x-Change"

The Train Collectors Association has launched the TCA x-Change.  It's a site designed to be an extension of the TCA's Interchange Point, a printed listing of items wanted or for sale that appears in the group's National Headquarters News.   The site is similar to eBay in that items for sale can be listed on-line with price, photos and descriptions and there are good search capabilities.  It's different from eBay in that there is no bidding, no fees and no direct way to exchange funds electronically.  Buyers must contact sellers directly to discuss the transaction and payment method.  Items wanted can also be listed. 

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MTH Proposes Alternative Reorganization Plans To Bankruptcy Court by Erol Gurcan

In my last article, I summarized that Lionel and MTH were in court on June 27th, with Lionel’s attorneys were attempting to convince Bankruptcy Judge Burton Lifland that he should try the trade secrets and separate $17.5 million dollar patent infringement case to expedite their exit from bankruptcy. MTH’s attorneys had cross-moved to send the trade secrets case back for trial to the Federal District Court in Michigan, the court where a jury awarded them $40.7 million dollars in June 2004.

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Auction Alert: Mainstream Toy Auction

Stout Auctions is holding a Mainstream Toy Auction at their Williamsport, Indiana gallery on July 7th.  500 lots of toy trains will be auctioned off.  You can participate in the auction via eBay Live.  View all the lots here.

All About Toy Trains For Kids - A Review by Erol Gurcan

TM Books and Video® released its “All about Trains for Kids” DVD in March. This DVD was delayed in the pipeline several times because the company focused on cowboy and tractor videos during last couple of years, except for the Lionel® FasTrackTM video released last fall. “TM had great success with its John Deere tractor videos, but they took longer to produce than we anticipated,” company founder and President Tom McComas said. “We wanted to get back to our roots with the train videos.” This new DVD picks up where TM’s “I Love Toy Trains” series left off.

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July Issue of Toy Collector e-Magazine Now Available On-line

If you haven't checked out Toy Collector Magazine, a new e-magazine that launched last month, you should.  The July edition is now available on-line here.

OGaugeWatch Mega-Steam Giveaway - Week #6 Winner

Congratulations to John H. the grand prize winner of the OGaugeWatch Mega-Steam Giveaway.  John will receive a Ready Made Toys Lehigh & New England BEEP courtesy of JT's Mega-Steam. 

I want to thank JT's Mega-Steam for providing the merchandise for OGaugeWatch's inaugural giveaway.  The giveaway was a huge success and all the winners of Mega-Steam Smoke Fluid (and those around them that don't have an appreciation for the fine aroma of classic smoke fluid) will enjoy their 2 oz. bottles of scented fluid.  I know John H. will enjoy the Lehigh & New England BEEP.  All of Mega-Steam's 26 smoke fluid scents and the L&NE BEEP are available on-line at www.megasteam.com.

Thanks to all of you who participated in the Mega-Steam giveaway by signing up for OGaugeWatch email updates.  Stay tuned for more giveaway events in the coming weeks featuring products from Evan Designs and Ready Made Toys.