The Electric Express was Cowen's first creation, intended as a display for toy stores. During the early 1900's, electricity, still a rarity in many homes, was held in awe and railroads still enthralled the American public.

Lionel's first product for sale was a large and simple train called the "Electric Express". It was powered by a fan motor, which in turn, was powered by a battery. The battery was soon replaced by a 110-volt electric transformer. Twelve of these Lionel trains were sold to curious customers.

Early Lionel Trains

Lionel trains popularity increased. The manufacturing cattle cars, coal cars, passenger cars, train stations, and other peripheral items soon followed. By 1909 Cowen was calling his trains "The Standard of the World." By 1910, the business of electric model trains had become a big business.

Lionel trains barely survived the Depression, when there was little money to spend on toys. World War II, prevented Lionel model trains from disappearing, as the company was able to produce war related items under small contracts to the government. It is believed the two decades following World War II were the firm's best, and those into serious model train collecting search out the products from those years. Even though model trains after WWII provided good times, that good fortune was about to change.
Beginning in 1953, Lionel’s best year, to 1959, sales dropped by more than half. In 1958, the company lost money for the first time since the Depression. Cowen’s great-nephew, Roy Cohn, who had purchased the family stock only 4 years earlier for $15 a share, sold his Lionel shares in 1959 for $5.25 a share.

Lionel model trains somehow survives, having passed through numerous hands and once again emerging from bankruptcy, as stated on their website.

Even with the troubles it has seen, Lionel model trains is undoubtedly the greatest name in model railroading.