Newsletter

Christmas 2008: We missed you at the store! Don't let the Polar Express leave the station without YOU in 2009!

We have made some exciting changes to the in-store layout. Come on in and see the new action. And keep coming in because there will be many more changes coming over the summer.

The long-awaited event room at Lone Star Trains is now finished and ready to book. We have already hosted a birthday party there, and soon we will be scheduling events, special workshops, and more, so stay tuned. The room has lots of privacy, its own elevated train, and lots of great optional features. Check back soon for a page on our site devoted exclusively to this room.

On Tuesday, July 12, 2005, the railroading community lost a very important person. Joe had friends everywhere--especially in the railroading world. Joe Covert was a very important part of the atmosphere at Lone Star Trains. He was always ready to help us with any historical railroad information, and was very quick to inform us of any local railroad happenings. In addition, he often allowed us to play with trains from his own collection in the shop. Many of the trains you have seen over the years on Lone Star layouts were Joe's.

Joe started his career with the Illinois Central. After a short stint there, he later joined the Missouri Pacific which was later taken over by Union Pacific. In the 1970's, he was instrumental in many projects at the Texas Transportation Museum, some of which he did single-handedly. He was an avid railroad memorabilia collector and historian. He especially loved railroad china. Last year, health reasons forced him to retire from UP.

Joe was a fixture in our shop and our daily lives. He was knowledgeable, generous, big-hearted, and most of all, a good friend who enjoyed bringing little bits of sunshine to our daily lives. We will miss him intensely.

George Super Coop Cooper passed away on Monday, November 17, 2003 around noon. In addition to his legendary radio career, Super Coop was the first co-worker at Lone Star Trains and was instrumental in LST's early success. All of us here at the train store will miss his mentoring, kind manner, and friendship very much. Click here to read his obituary.

Woai-tv channel 4 featured Lone Star Trains and Collectibles on its Friday July 18th telecast. Popular weatherman Maclovio Perez came out with Renee the camaraman and did 4 live spots direct from Lone Star Trains.

One spot showed the layout and was used as a teaser during the Regis and Kelly show. Another longer spot featured Maclovio and Lisa Kinsner at the Thomas tables playing and talking Thomas. Another spot featured Mac in the middle of the layout. The longest spot had Mac and Clay Kinsner discussing and showing collectible toys and the different gauges of trains. At the end, Clay presented Mac with a TCA 2006 Convention button which he wore home!

TO SUMMERTIME SNOW – DISNEY PULLS OUT ALL THE WHISTLE STOPS FOR 40-CITY TRAVELING EXPERIENCE

Burbank, Calif. (May 8, 2009) -- Disney is pulling out all the whistle stops and taking its show on the road with a spectacular immersive and interactive 40-city train tour including a 3D sneak peek of film footage from the upcoming movie “Disney’s A Christmas Carol,” it was announced today (05/08/09) by Dick Cook, chairman, The Walt Disney Studios. Set amidst a snowy backdrop—complete with all of the sights and sounds of Christmas including carolers, decorations, giveaways and many more surprises in each of the 40 cities—the Train Tour is being launched with HP on board as the title and technology sponsor and driven by Amtrak. This family event is for guests of all ages and is free to the public.

Starring Jim Carrey and directed by Academy Award^®-winning filmmaker Robert Zemeckis, “Disney’s A Christmas Carol” opens in theatres November 6 in Disney Digital 3D™ and in IMAX 3D^®.

Commenting on the announcement, Cook said, “‘Disney’s A Christmas Carol’ Train Tour is an incredibly fun way to introduce families across the country to the wonders and spectacle that is Robert Zemeckis’ unique and spectacular new holiday film. We are so proud of the movie, and think the 3D footage is so incredible, we just had to give everyone a chance to see it in Disney Digital 3D. From Los Angeles to New York, and all points in between, guests are going to have a fabulous time discovering things about the making of this extraordinary film, participating in their own festive fantasies, and getting into the holiday spirit all year round. ‘Disney’s A Christmas Carol’ is great entertainment for moviegoers of all ages, and this is the perfect introduction to a fun and exciting new holiday classic.”

Among the highlights of the tour are authentic artifacts on loan from the Charles Dickens Museum of London; artwork, costumes and props from the film; demonstrations of performance capture technology; and a chance to morph your face into one of the film’s characters using HP TouchSmart PCs. At each stop along the way, a state-of-the-art Disney Digital 3D Theatre will be erected, where guests can get a sneak peek of “Disney’s A Christmas Carol” and see other exclusive behind-the-scenes materials from the movie. The latest details about tour stops and scheduled events are available at www.christmascaroltraintour.com.

Featuring four custom-designed vintage rail cars full of behind-the-scenes attractions, entertaining demonstrations, and fun activities, the tour will have its inaugural stop at Los Angeles’ Union Station over Memorial Day Weekend, from May 22^nd through May 25^th. During the next 24 weeks, the train will make 40 stops in 36 states, as it travels its way across more than 16,000 miles of track. The tour will finish at New York’s Grand Central Terminal over the weekend of October 30^th through November 1^st.

At every tour stop, Radio Disney will invite kids to enter for a chance to become a Movie Surfer representing their hometown. Each Hometown Movie Surfer will get a chance to appear on Disney Channel by filming their very own Movie Surfer’s segment! They’ll also receive a prize package of exclusive Movie Surfer and "Disney’s A Christmas Carol” gear.

ABC television stations across the country will run local promotions. At each stop, guests will have the chance to win an HP TouchSmart PC and an HP Photosmart wireless printer. Additionally, Disney is working with the Boys & Girls Clubs of America organization to provide an early Christmas experience to kids across the country. Disney will present the organization with a donation in the amount of $100,000 at the May 21^st launch in Los Angeles to further the organization’s efforts of helping kids grow up to be great and will invite Boys & Girls Club kids to be part of the tour when it comes to their town. Boys & Girls Clubs throughout the nation are impacting the lives of 4.8 million young people each year with after-school programs that emphasize education, career exploration, community service, technology skills, financial literacy, the arts and more to help them reach their full potential as productive, caring citizens.

A variety of innovative HP technologies helped to make the Train Tour possible. HP ProLiant servers and HP ProCurve switches will provide Disney with the computing power that will allow guests to collect and upload photos. Throughout the train exhibits, Disney is using HP TouchSmart PCs to run an interactive face morph application and HP monitors to showcase performance capture technology as well as images and digital effects from the film. Additionally, each train car will be wrapped with Disney’s Train Tour logo using the versatility of HP Scitex printers.

For decades HP and Disney have joined together to captivate audiences through technology innovation and digital entertainment,” said Michael Mendenhall, senior vice president and chief marketing officer, HP. “HP technology used in the making of ‘Disney’s A Christmas Carol’ has enabled Disney to push the boundaries in performance capture technology. The Train Tour offers an innovative way for guests to interact with HP’s latest technology and experience the magic behind the film.”

Amtrak locomotives and engineers will lead the four-car Train Tour (plus a private car), across the US, with stops ranging from 1-3 days along the way. Each train station will be themed with holiday decorations, and feature artwork from the film, Christmas Carolers, fun activities for the entire family, and snow!

“Rail travel continues to influence the way people connect with each other and celebrating the release of a true classic is a perfect way to further that connection,” said Emmett Fremaux, Vice President Marketing and Product Management, Amtrak. “We couldn’t be more thrilled to be teaming up with Walt Disney Studios for this 40 city tour to help educate Americans about the benefit of rail travel.”

“Disney’s A Christmas Carol,” a multi-sensory thrill ride re-envisioned by Academy Award®-winning filmmaker Robert Zemeckis, captures the fantastical essence of the classic Dickens tale in a groundbreaking, performance-capture 3D motion picture event. Ebeneezer Scrooge (Jim Carrey) begins the holiday with his usual miserly contempt, barking at his faithful clerk (Gary Oldman) and his cheery nephew (Colin Firth). But when the ghosts of Christmas Past, Present, and Yet to Come take him on an eye-opening journey, revealing truths Old Scrooge is reluctant to face, he must open his heart to undo years of ill will before it’s too late. Through the magic of performance-capture technology, Jim Carrey tackles seven roles, including Scrooge and all of the Christmas spirits.

LIONEL LICENSES M.T.H. FOR TINPLATE

New York City, NY, Dec. 31, 2008 -- Lionel Electric Trains announced today that it has entered into a multi-year licensing agreement with M.T.H. Electric Trains, in which the Columbia, MD, model train maker will create a new line of tinplate Lionel Standard and O gauge products. The license will also include tinplate Standard and O gauge offerings for American Flyer, which has been part of Lionel since its acquisition in 1967.

Using its extensive collection of tinplate tooling, M.T.H. plans to issue new versions of Lionel and American Flyer classic tinplate trains and accessories that were originally released between 1900 and 1942. These products will be packaged in all-new boxes with iconic Lionel and American Flyer advertising images and logos from the prewar tinplate era. Promotion of new tinplate Lionel and American Flyer products will begin in early 2009, with full-color catalogs. A Web site, dedicated to the new product line, will also offer product videos, sound clips and other information not available in print catalogs.

“I’m very pleased that M.T.H. and Lionel will be working together on this new Lionel and American Flyer tinplate line,” said Jerry Calabrese, Lionel CEO. Calabrese went on to say, “In times as difficult and challenging as these, I hope it’s reassuring to all model train fans that both our companies will be joining forces to write a productive new chapter in our hobby’s history. There is no better way to express our mutual belief and commitment to the future of model railroading than for Lionel and M.T.H. to collaborate on something as imaginative and exciting as these new Tinplate products.

“This collaboration builds on what we’ve accomplished with our Tinplate Traditions line over the past three decades,” noted M.T.H. President Mike Wolf. “It is no secret to those who know me that Lionel’s history has inspired me since my youth.” Wolf went on to say, “By working together, our two companies will be able to offer products that even more faithfully evoke the beauty and artistry of the toys that Lionel and American Flyer turned out in the prewar years, as well as make those trains available to a wider audience.

Wolf added, “Putting aside the differences our firms have had over the years, Jerry and I have always recognized how much synergy exists between Lionel and M.T.H. Together we sat down and worked out this agreement with the express goal of expanding on both firms’ longstanding commitments to grow our hobby.”

Based in New York City, Lionel has been making model trains and accessories since 1900. It is one of the world's leading model train companies, and among the most widely recognized brands in America.

Based in Columbia, Maryland, M.T.H. Electric Trains is a seasoned model train manufacturer with a long history of innovation. In little more than a quarter century, M.T.H. has created an appealing multi-gauge product line.

08/25/08: Newsflash: San Antonio Children's Museum is having a Let's Play Railroad event through September 14. More here.

08/13/08: M.T.H., MKT Settle Misappropriation of Trade Secrets Lawsuit

Columbia, Maryland, August 12, 2008 --- The federal court case between M.T.H. Electric Trains and MKT (formerly Korea Brass) has been resolved via settlement between the two firms. Terms of the settlement include payment by MKT to M.T.H. in the form of Cash, HO tooling from the Broadway Limited product line and Lionel HO product line, a sub-license from Precision Craft Models for the DCC patent held by Real Rail Effects and dismissal of the MKT/Korea Brass financed QSI Patent Infringement case against M.T.H.

A federal trial in U.S. District Court (Southern District Michigan) was concluded on June 7, 2004 with a verdict in favor of the plaintiff, M.T.H. Korea Brass and its co-defendant, Yoo Chan Yang were found liable on M.T.H.’s claims of misappropriation of M.T.H.’s trade secrets. The jury also found that the defendants’ actions were willful and malicious. The jury awarded M.T.H. damages in the amount of $27,940,925.00.

Two weeks after the 2004 jury decision in Michigan, Korea Brass transferred all of its assets and purchase orders to a new Korean entity named MKT. In May of 2006, M.T.H. filed a lawsuit in the same Michigan U.S. District Court that heard the original suit to contest the fraudulent transfer of assets undertaken by Korea Brass to avoid that court’s judgment. In April 2008, a final judgment against MKT was issued finding that MKT and Korea Brass were one and the same and that MKT was liable for the original judgment against Korea Brass. An injunction was subsequently issued requiring that all payments due to MKT from its U.S. customers were to be paid to M.T.H. until the original judgment was satisfied.

The MKT settlement negotiations were complicated and delayed due to MKT’s current financial status, their previous ownership status of U.S. model railroad importer Broadway Limited, their relationship with Precision Craft Models and that firm’s relationship with DCC patent holder Real Rails Effects, and their joint venture agreement with QSI to fund a merit less patent infringement lawsuit against M.T.H. Electric Trains in an effort to pressure M.T.H. to settle the original Michigan trade secrets lawsuit. Precision Craft Models assisted Real Rail Effects patent infringement lawsuits in Florida against QSI, Atlas O LLC, and American Hobby Distributors. These suits alleged violations of Real Rail Effects’ patent for combining DCC with a Sound Decoder and M.T.H. felt it needed a license with Real Rail Effects to prevent a presumable forthcoming lawsuit between Real Rail Effects and M.T.H.

M.T.H. Electric Trains president Mike Wolf said; “It was so frustrating to negotiate the settlement due to all the moving parts.” Toward the end of negotiations, MKT insisted that the QSI suit dismissal not be included but Wolf wanted it resolved along with the Real Rail Effects patent infringement suit between QSI, Atlas O LLC, and American Hobby Distributors. According to Wolf, “I wanted to wrap up all of this litigation in one big settlement even though some elements of the resolution would have benefited my competitors, so I insisted that the QSI suit be resolved as well as the Real Rail Effects suits against the other named parties. This was one of the reasons this thing took so long, but in the end it was worth the wait.”

In the end M.T.H. secured cash payments of $950,000.00 and has taken ownership of the tooling for the following Broadway Limited HO models: Union Pacific die-cast Big Boy steam engine, Pennsylvania die-cast GG-1 electric, Alco PA diesel, Alco FA diesel, EMD F3 diesel and EMD F7 diesel. Also included were the two sets of Lionel HO tooling for their Union Pacific die-cast Challenger and their Union Pacific die-cast Veranda Turbine. MKT also agreed to provide to M.T.H., on behalf of Real Rail Effects and Precision Craft Models, a non-royalty, perpetual license for the right to produce and market model train products equipped with a DCC soundboard receiver. MKT also agreed to obtain a dismissal of the QSI lawsuit against M.T.H. for alleged patent infringements, as was MKT’s right to do so per its joint venture agreement with QSI.

M.T.H. Electric Trains, with the trade secrets case now completely behind it, will continue to forge ahead with its expansion plans in the HO, One-Gauge and O Gauge markets. The HO tooling acquired in the MKT settlement will require significant reworking in order to bring the models up to M.T.H.’s HO standards and house M.T.H.’s Proto-Sound 3.0 sound and train control modules. Once the upgrades have been completed, the models will be incorporated into M.T.H.’s ever-growing product lines that continue to reflect the company’s commitment to producing the best model railroading products available today.

July 25, 2008: Atlas O Announces 5% Increases Across the Board Effective August 1.

Due to factors beyond Atlas O's control, effective August 1st, 5:00 PM EST, Atlas O will raise prices on all track and accessories by 5%.

Lionel has fully emerged from Bankruptcy. Current President Jerry Calabrese touts the fact that it has been tough, but it has rejuvenated the company and its resolve noting the record sales over the last three years and new technology such as the Legacy System. The legal troubles are over.

04/30/08

The following items are being dropped by Lionel due to “lack of support” (ie. Preorders)...these items will not be produced:

LNL27191        RI PS-2CD 3PK

LNL27192        NP PS-2CD 3PK

LNL28284        **FERROMAX SD70ACE

LNL28285        **BNSF SD70ACE NON-PWR SO

LNL28288        **KCS SD70ACE NON-PWR

LNL28289        **SSW SD40T-2

LNL28290        **RI U30C

LNL28291        **MP U30C

LNL28296        **UP AC6000

LNL28297        **UP AC6000 NON-PWR

LNL28304        **UP LEGACY SUPER BASS

LNL28586        ** PENNSY GP7 NON-PWR

LNL28587        ** PENNSY GP7 #8511

LNL28590        ** DRGW GP7 NON-PWR

LNL28591        ** DRGW GP7 #5102

LNL34542        ** MONON F3 A-UNIT

LNL34543        ** MONON F3-B NON-PWR

LNL34556        **C&O E7 A-A SET

LNL35136        ALASKA MADISON 4PK

LNL35137        ALASKA TS BAGGAGE CAR

LNL35138        ALTON LTD TS BAGGAGE CAR

LNL35417        MILW RD 18" ALUMINUM 4PK

Though Lionel and MTH settled their lawsuit, MTH and Korea
Brass have not. MTH placed a legal hold on all income to
Korea Brass until the lawsuit is settled. What this means is that all manufacturers working
with Korea Brass have to put their money in escrow until there is a resolution between MTH and Korea Brass.
Lionel says that the Big Boy is not completed. In fact, it is still under development. This
may be a length delay' Lionel has not provided a timeline. Do not expect this engine until 2009.

S Gaugers should not feel alone; there are many other manufacturers and many other items that are caught up in this mess.

COLUMBIA, Md. - The nation's two largest makers of toy trains are nearing a conclusion to a seven-year-old, multimillion-dollar lawsuit.

Columbia-based MTH Electric Trains had sued Lionel, a century-old brand, accusing it of stealing train designs through a Korean subcontractor.

The dispute focused on patented computer technology that synchronizes a train set's sound, smoke and speed, critical technology in their small but competitive market.

"We're happy that we've reached a settlement," said Jerry Calabrese, chief executive of Lionel, based in Chesterfield, Mich. "It was a long, terrible case."

However, MTH founder Mike Wolf said the settlement is contingent on resolving several outstanding issues.

"It's not over until it's over," Wolf said. "We don't like each other. It's personal. It's been very difficult."

The agreement includes a cash payment from Lionel to MTH and an agreement on future technology uses, but the companies agreed not to reveal details.

The Lionel subcontractor was found guilty in a South Korean court of stealing train designs, and MTH then sued Lionel in the United States.

A Michigan jury awarded MTH $38.6 million in damages in 2004, but in 2006 the U.S. 6th Circuit Court of Appeals overturned the verdict and ordered a new trial.

LGBoA Signs Exclusive Agreement with Märklin

LGB of America today announced that it has signed an exclusive distribution
agreement with Märklin. The agreement means that LGB consumers in North
America will continue to get quality LGB products and service from their
friends at LGB of America.

"I have seen Märklin's commitment to keeping the spirit of LGB alive," said
Tony Castellano, President of LGBoA. "And now, LGB of America is prepared
for a very bright future as the one-stop source for the best model trains in
the world."

LGBoA expects to receive shipments soon of LGB products from Nürnberg.
Märklin has also announced that it expects to restart the successful "LGB
Club" and its member magazine as soon as possible. "Containers to be shipped
to our Freehold warehouse are already being prepared, and we're pushing hard
to serve our customers even better than before," said Castellano, who noted
that details concerning new products, prices and availability will be
released as quickly as possible.

In conjunction with the Märklin agreement, LGBoA also announced today that
its parent company, G45 Inc., has been transferred to new owners: LGBoA
President Tony Castellano and Munich attorney Stefan Jakob, who represented
LGBoA in the Lehmann bankruptcy proceedings. "I saw the potential in LGBoA,"
said Jakob. "Now, I can see that potential becoming reality."

06/12/07: RC2 issues a recall on a few Thomas the Tank Engine items. The recall mostly concerns the red paint used in characters such as James and accessories such as the Smeltering Yard. Visit http://recalls.rc2.com for a complete listing and instructions for sending items back to RC2. Here's a list of what is affected: