History of rail transport
James Watt, a Scottish inventor and mechanical engineer, greatly improved the steam engine of Thomas Newcomen, hitherto used to pump water out of mines. Watt developed a reciprocating engine in 1769, capable of powering a wheel. Although the Watt engine powered cotton mills and a variety of machinery, it was a large stationary engine. It could not be otherwise: the state of boiler technology necessitated the use of low pressure steam acting upon a vacuum in the cylinder; this required a separate condenser and an air pump. Nevertheless, as the construction of boilers improved, Watt investigated the use of high-pressure steam acting directly upon a piston. This raised the possibility of a smaller engine, that might be used to power a vehicle and he patented a design for a steam locomotive in 1784. His employee William Murdoch produced a working model of a self-propelled steam carriage in that year.
The first full-scale working railway steam locomotive was built in the United Kingdom in 1804 by Richard Trevithick, a British engineer born in Cornwall. This used high-pressure steam to drive the engine by one power stroke. The transmission system employed a large flywheel to even out the action of the piston rod. On 21 February 1804, the world's first steam-powered railway journey took place when Trevithick's unnamed steam locomotive hauled a train along the tramway of the Penydarren ironworks, near Merthyr Tydfil in South Wales. Trevithick later demonstrated a locomotive operating upon a piece of circular rail track in Bloomsbury, London, the "Catch Me Who Can", but never got beyond the experimental stage with railway locomotives, not least because his engines were too heavy for the cast-iron plateway track then in use.
The first commercially successful steam locomotive was Matthew Murray's rack locomotive "Salamanca" built for the Middleton Railway in Leeds in 1812. This twin-cylinder locomotive was not heavy enough to break the edge-rails track and solved the problem of adhesion by a cog-wheel using teeth cast on the side of one of the rails. Thus it was also the first rack railway.
Lionel Corporation
It was historically thought that Lionel's first train, the Electric Express, was not intended for sale to consumers, but rather, as a storefront display. Delivered in December 1900, it operated on a brass track and was powered by a battery and a motor Cowen originally intended to use in an electric fan. Cowen hoped to use the public's fascination with railroads and electricity to capture the public's attention and direct it to the goods for sale. Members of the public started approaching store owners about buying the trains instead, prompting Lionel to begin making toy trains for the general public. Lionel ended up selling 12 examples of the Electric Express.
Recently however, the 2014 edition of Greenbergs Guide to Lionel trains standard and 2 7/8" gauges has concluded that the first Lionel product was the motorized Converse Trolley, with the electric express being made to diversify the motor's use.
Lionel's earliest trains were larger than the sizes commonly available today, running on two-rail tracks with the rails 2 inches apart. In 1906, Lionel began offering a three-rail track that simplified wiring of reverse loops and accessories. Its outer rails were 2 inches apart, which did not match any of the existing standards that other manufacturers had been using since 1891. Whether this was an accidental misreading of Märklin's 2 gauge specifications or an intentional incompatibility is unclear, but Lionel marketed this non-standard track as "The Standard of the World," and soon adopted the name in its catalogs as Standard Gauge and trademarked the name. When other U.S. companies began using Lionel's standard, they usually called it "wide gauge". Starting in 1915, Lionel followed most of its U.S. competitors and adopted the smaller O gauge standard for its budget-level trains.