Walthers - 932-50063 - Caboose, Cupola, Steel, NE - Penn Central - 18423

Model Information: Life-Like first introduced this body style in the 90's. They have metal wheels and truck-mounted Rapido couplers. The caboose design is based on a common prototype used by many Northeastern roads.

Prototype History: The Northeast or NE style caboose was introduced by the Reading Railroad in 1924. The design was an all-steel version of a USRA design. The acquisition of these new cabooses was prompted by proposed Pennsylvania legislation requiring larger, more structurally sound caboose for use in through freight consists. The original set of cabooses was ordered from AC&F, but other manufacturers also adopted similar designs.

The Reading selection was made after the consideration of several designs. The original purchase was for 10 cars in 1924, but the design was so effective that it became the de-facto Reading standard and they continued purchasing new cabooses of this type through 1948. The design soon became popular with other Northeastern railroads such as the WM, L&NE, LV, CNJ and others.

Road Name History: The Penn Central Transportation Company, commonly abbreviated to Penn Central, was an American Class I railroad headquartered in Philadelphia, Pennsylvania, that operated from 1968 until 1976. It was created by the 1968 merger of the Pennsylvania and New York Central railroads. The New York, New Haven & Hartford Railroad was added to the merger in 1969; by 1970, the company had filed for what was, at that time, the largest bankruptcy in U.S. history.

The Penn Central was created as a response to challenges faced by all three railroads in the late 1960s. The northeastern quarter of the United States, these railroads' service area, was the most densely populated region of the U.S. While railroads elsewhere in North America drew a high percentage of their revenues from the long-distance shipment of commodities such as coal, lumber, paper and iron ore, Northeastern railroads traditionally depended on a mix of services.

As it turned out, the merged Penn Central was little better off than its constituent roads were before. A merger implementation plan was drawn up, but not carried out. Attempts to integrate operations, personnel and equipment were not very successful, due to clashing corporate cultures, incompatible computer systems and union contracts. Track conditions deteriorated (some of these conditions were inherited from the three merged railroads) and trains had to be run at reduced speeds. This meant delayed shipments and personnel working a lot of overtime. As a result, operating costs soared. Derailments and wrecks became frequent, particularly in the midwest.

The American financial system was shocked when after only two years of operations, the Penn Central Transportation company was put into bankruptcy on June 21, 1970. It was the largest corporate bankruptcy in American history at that time. Although the Penn Central Transportation Company was put into bankruptcy, its parent Penn Central Company was able to survive.

The Penn Central continued to operate freight service under bankruptcy court protection. After private-sector reorganization efforts failed, Congress nationalized the Penn Central under the terms of the Railroad Revitalization and Regulatory Reform Act of 1976. The new law folded six northeastern railroads, the Penn Central and five smaller, failed lines, into the Consolidated Rail Corporation, commonly known as Conrail. The act took effect on April 1, 1976.

Read more on Wikipedia.

Brand/Importer Information: Wm. K. Walthers, Inc., was founded in Milwaukee in 1932 -- but really, it started years earlier, when seven-year-old Bill Walthers got his first taste of the hobby with a small, wind-up toy train for Christmas. He continued with the hobby and eventually had an attic layout comprised primarily of his own scratch-built creations. After he wrote a series of articles on building train control and signaling systems, he got so many letters from other modelers that he began manufacturing them. The first ad (in the May issue of The Model Maker) offered a 24-page, 15c catalog that listed rail, couplers, and electrical supplies. Sales were over $500.00 for the first year, and the fledgling company was off to a strong start.

Within five years, Walthers had grown so much that larger quarters were needed. Space was found on Erie Street, where everything -- from milled wood parts to metal castings to decals -- was made in-house. 1937 also saw a new line in HO Scale, featured in its own catalog. Bill brought operating layouts to the 1939 World's Fair, which gave the hobby a big boost. Soon, though, the growing possibility of war overshadowed these successes, and supplies were becoming increasingly difficult to obtain.

During the war, model manufacturers were ordered to stop production in order to conserve critical metal supplies. Walthers produced what it could from nonessential materials. A series of ads in 1943 saw Bill literally scraping the bottom of a barrel! The postwar boom meant rapid growth for the hobby; however, small homes and new families left no room for O scale layouts, and many modelers moved to HO Scale.

The next twenty years brought great change. In 1958, Bill retired and his son Bruce took over. Just as full-size railroads were being hard-hit by new technology, so too were model railroads. Leisure time was spent in front of the TV set, not the train set. In 1960, Walthers became a full-line distributor of other manufacturers' products while continuing expansion of the Walthers lines. By the start of the 1970's, business was booming again, and Bruce's son Phil joined the company.

Expansion and diversification continue under Phil's tenure. The establishment of the Walthers Importing Division added several international lines. The manufacturing plant was modernized. Code 83 track was introduced in 1985, giving layouts more realistic proportions. In 1990, the Cornerstone Series buildings were unveiled. Combining a freight car with a related industry, the Cornerstone Series makes it possible for modelers to duplicate authentic operations, enhancing layout realism. The Train Line Deluxe Sets and locomotives debuted in 1994. These sets feature the detailing of serious models and an affordable price -- allowing newcomers to get started, and then build-on to their first set, rather than replacing it.

In 2005, Walthers purchased Life-Like from Lifoam Industries. With this purchase Walthers acquired the Proto Lines that have become the backbone of their locomotive and rolling stock segments.

Today, Walthers continues to expand, improve and develop a wide range of products. Their latest selection can be found throughout Walthers.com and their printed catalogs, along with items from over 300 other manufacturers.

In December 2017, Lowell Smith announced the ‘purchase of tooling’ of the Walthers line of N Scale passenger cars (sleeper, coach and baggage cars), and in June 2018, Atlas announced that it will purchase all N scale locomotive and rolling stock tooling owned by Walthers, including the Walthers N tooling as well as former Life-Like tooling. This divestment puts an end to Walthers involvement as a manufacturer of N scale rolling-stock, though it will continue its range of N scale structures.