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Marx Trains

Marx 'O' gauge Steam loco


Marx Prewar Moon Mullins and Kayo Wind-Up Hand Car Louis Marx & Co. was a popular American manufacturer of toys and trains founded in 1919 by brothers Louis and David Marx. During its production years, Marx made both electric and clockwork trains in multiple sizes, 6 of which operated on 'O' or 'O-27' gauge track, and HO gauge trains as well. The company usually supplied products at the price niche below Lionel and American Flyer, making it popular with consumers who could not afford those brands. Marx train production started in 1934 with the purchase of Joy Line trains. Prior to that acquisition, Louis Marx was a commissioned sales representative for the Girard Company's Joy Line products. Louis Marx & Co. issued train sets under several brand names including Allstate, Marlines, Linemar and Stream Line. Marx toys have the reputation of being one of the most recognized, respected and popular names among today's antique toy collectors.

Marx tinplate lithographed clockwork powered Union Pacific M-10005 streamliner in 'O' gauge circa 1935

Louis Marx, was born in Brooklyn, NY, in 1896. At the age of sixteen, Marx began working for Ferdinand. J. Strauss Company, a toy manufacturer that produced items for Abraham & Strauss Department Stores. His energy and enthusiasm helped him to become a manager by the time he was twenty. In 1919, Marx had a falling out with Strauss. Deciding that it was time to venture out on his own, he established Louis Marx & Co., and set up office at 200 Fifth Avenue, in New York City, which was known as the toy center. Marx started his company with virtually nothing. He had no money, machinery, products, patents, or customers, but what he lacked in resources, he more than made up for in seemingly endless Marx 'O' gauge M10005 Union Pacific Passenger Streamliner first made in 1934 energy and determination. He wasted no time and started contracting with manufacturers to produce toys that he designed.

His brother David decided to join him a couple of years later. Louis had the business, designing, and marketing skills, and David was the man behind the operations. The two of them together would grow to be the world's largest toy manufacturer.

Marx boxes were imprinted with the slogan, "One of the many Marx toys, have you all of them?" The Marx logo consisted of the letters "MAR" in a circle with a large X through it, resembling a railroad crossing sign. Because of this, Marx toys are sometimes misidentified as "Mar" toys.

Marx's toys included tinplate buildings, toy soldiers, toy dinosaurs, mechanical toys, toy guns, action figures, dolls, doll houses, toy cars, floor trains and after the acquisition of Joy Line, HO scale and 'O' scale toy trains that ran on tracks. Marx's less-expensive toys were extremely common in dime stores, and its larger, costlier toys were staples for catalog retailers such as Sears and Montgomery Ward, especially around Christmas time. Marx 'O' gauge red Mercury clockwork Steam loco set lithographed tinplate circa 1939 Although the company is now largely forgotten except by toy collectors, several of its toys remain well known. Rock'em Sock'em Robots, introduced in the 1960's, remained popular for years and has been reintroduced by several different companies. Louis Marx & Co. also obtained several popular character licenses, including Popeye and the Flintstones. The company also created some Walt Disney themed items. Its last hurrah was the Big Wheel ride-on pedal toy, which was introduced in 1969 and became one of the most popular toys of the 1970's.

Marx tinplate lithographed electic NYC streamliner in 'O' gauge The company's basic policies were "Give the customer more toy for less money," and "Quality is not negotiable," which made the company highly successful. Initially the company had no product designs and no manufacturing capacity, so Marx raised money by positioning itself as a middle man, studying available products, finding ways to make them cheaper, and then closing a sale. Funds raised from these efforts proved sufficient to purchase tooling for two obsolete tin toys called the Alabama Minstrel Dancer and Zippo the Climbing Monkey from toymaker Ferdinand Strauss, one of Louis Marx's former employers. With subtle changes, Marx was able to turn these toys into hits, selling more than 8 million of each within two years. Marx then bought the company it had subcontracted to manufacture the toys. By 1921, they were able to start independently producing toys from their own designs. By 1922, both Louis and David Marx were millionaires. Initially Marx produced few original toys, but was able to predict what toys would be hits and manufacture them less expensively than the competition. The yo-yo is an example: Although Marx is sometimes wrongly credited with inventing the toy, Marx was quick to market its own version, and during the 1920's sold an estimated 100 million of them.

Marx 'O' gauge pre-war tin-litho #897 Steam loco Unlike most companies, Marx's revenues grew during the Great Depression. By 1937, the company had more than $3.2 million in assets ($62.6 Mil. in 2021 dollars), with debt of just over $500,000. Marx was the largest toy manufacturer in the world by the 1950's. In a 1955 article, Time Magazine proclaimed Louis Marx "the Toy King," and that year, the company had about $50 million in sales. It was there he boasted about his annual advertising budget of $312.00, something he took pride in, and rightfully so. Marx was the initial inductee in the Toy Hall of Fame, and his plaque proclaimed him "The Henry Ford of the toy industry."

Marx 'O' gauge tinplate Man In Door reefer from the 1930's At its peak, Louis Marx and Company operated three manufacturing plants in the United States: Erie, Pennsylvania, Girard, Pennsylvania (original factory where the Joy Line toy trains were produced), and Glen Dale, West Virginia. The Erie plant was the oldest and largest, while the Girard plant, acquired in 1934 with the purchase of Girard Model Works, produced toy trains, and the Glen Dale plant produced toy cars.

Marx 'O' gauge tinplate freight cars - #555 Colorado Southern Box Car, #554 General Coal Company Hopper, #553 Santa Fe Middle States Oil Car and #552 C R I & P Rock Island Vintage Marlines Gondola Louis Marx offered his first trains for sale under the Marx moniker in 1934. What was offered that first year was Joy Line sets consisting of old stock, packaged in Marx boxes. The Joy Line trains were simple lightweight tinplate lithographed short fanciful 4-wheel models (around 5½" long) that operated on 'O' gauge track. That year's production also included the new Marx tinplate Union Pacific M10000 articulated streamlined passenger set that used the Joy Line motor. For its early electric and windup trains, as it did for most of its toy line, Marx employed the lithography process for printing colors, letters and images on the metals it utilized to form the items. The trains were designed so that a single flat sheet of lithographed tinplate could be formed, folded and bent to construct the shell. A second sheet was stamped into the shape of the frame. The two pieces were meshed together using tabs on the shell that were bent after being placed into slots on the frame. Because of this approach to sturdy construction, Marx trains were built to last.

Marx 'O' gauge tinplate clockwork streamliner - Union Pacific engine, one coach, and one coach buffet. In 1935 Marx replaced the Girard/Joy Line trains with its own newly designed line of less whimsical 6" tin lithographed cars. The Marx trains were still more toy-like than scale models. They were small 'O' gauge trains designed to run on 'O-27' narrow radius track. Most cars had 4 wheels, but a few were made with 2 sets of 4-wheel trucks. These 6" cars were decorated with the heralds and names of real railroads and remained in the line through 1972.

Marx #416 operating Floodlight tower For its electric trains, Marx standardized all its locomotives with a reliable open frame AC motor that enabled quality product while still keeping costs to a minimum. This simple motor had 2 affixed axles with the drivers attached. The axle of the armature had a gear affixed on one end. That gear meshed with others to drive the wheels. The early Marx locos had a single reduction gearing, the result being drive wheels geared inside the flange. These 'fat wheels' appear on Marx locomotives as late as the early 1950's. Unfortunately, the fat wheels make it impossible for the Marx locomotives to negotiate any other manufactuer's switches or crossovers. The center rail pickup shoe on a Marx motor is a copper strip. The shoe glides over the top of the middle track rail, buffeted by a spring. These inexpensive pickups remained in use during all Marx manufacturing periods. The shoe makes it difficult for some Marx trains to negotiate the 5-rail Lionel operating track and switches. Most can get through, provided they don't have a fat wheel.

Marx 'O' gauge tinplate early steam freight set Circa 1940 with Commodore Vanderbilt 0-4-0 steam loco, NYC tender, #553 SF tank car, #547 REA baggage car, #554 General Coal hopper, #559 double searchlight car, #550 NYC wrecker crane, #552 Rock Island gondola & #556 NYC caboose

Marx created its own versions of the popular trains of the times. Its Mercury set was based on a New York Central streamliner prototype. The 1935 expansion of the Marx train line included the Commodore Vanderbilt engine that was released in both clockwork and electric versions, along with new streamlined passenger coaches and freight cars that were Marx tinplate #2960 lithographed Girard Station circa 1930 equipped with Joy Line couplers. The M10000 and M10005 streamliners of the Union Pacific were reproduced in several color schemes, followed by the streamlined Canadian Pacific Royal Hudsons. Early tinplate freight cars included box cars, reefers, stock cars, gondolas, and a cupola caboose. Operating cars included a flat with searchlights and a crane car. The success of Marx trains is attributed to the simplicity of the designs that facilitated economical manufacture, while still achieving a degree of realism and play value. The lithographed patterns on these trains included rivets, doors, window shades and real railroad heralds. Eventually Marx released its #999 steam outline loco made using a die-cast metal shell. The #999 was the most realistic locomotive Marx had made up until that time. During the pre-1942 era, the Marx tin-litho locomotive lineup consisted of the Mercury, Commodore Vanderbilt, #897, #898, #994, Canadian Pacific type, Union Pacific Streamliners, the #999 diecast steamer and the very cheap #591.

Marx 'O' gauge Canadian Pacific 2-4-0 Loco and 4-wheel Tender The early Marx trains were fitted with a basic tab-and-slot coupler, which were common in tinplate toy trains. Marx experimented briefly with an 'auto coupler', but it was somewhat problematic. Eventually, in 1941, along with the introduction of its 3/16" scale trains, a 'tilt coupler' that consisted of a flat, dovetailed piece that locked by sliding onto another coupler became standard issue. The tilt coupler was a single molded plastic piece. Tilting the plastic coupler with your finger would uncouple it from a second one. The tilt coupler was incompatible with the Lionel-type knuckle coupler however. In later years, the less expensive Marx sets featured a 1-piece non-operating plastic knuckle coupler, that was also not compatible with any other manufacturer's couplers.

Marx 'O' gauge 3/16 scale New York Central Freight Set circa 1940's

Louis Marx followed A. C. Gilbert's idea to manufacture a scale train in 'O' gauge. Rather than use the 1:48 that is native to 'O', Gilbert opted on a smaller 1:64 scale model. This would allow long cars to negotiate tight O-31 turns. The resulting Marx 3/16" scale tinplate trains became popular sellers as they featured a high degree of detailing in the lithographed decorations and the railroad heralds utilized were prototypically accurate. The early models made during the pre-war era and early post-war periods featured smaller, more scale sized trucks and wheelsets. The later production cars were equipped with larger non-scale sized trucks and wheelsets. The Marx 3/16" line remained in production through 1954.

Marx 'O' gauge 3/16" Tinplate Lithographed Freight Cars
Marx 'O' gauge 3/16 inch scale tinplate freight cars
Marx 'O' gauge 3/16 inch scale tinplate #13079 LNE 4-bay Hopper Marx 'O' gauge 3/16 inch scale tinplate #347000 Pennsylvania RR Gondola Marx 'O' gauge 3/16 inch scale tinplate #2532 CSOX Cities Service Tank Car

Marx also operated numerous toy manufacturing plants overseas and also produced and distributed toys in England from 1937 through 1967. The original British factory was located in Dudley. The Marx Company had enjoyed solid and steady growth until the start of World War II, when factories had to be converted for the war effort. After the war the Company relocated British production to a new site at Swansea Industrial Estate. The Estate had been opened in 1945 by King George VI and Queen Elizabeth as part of the British Government's attempt to revitalize South Wales. Louis Marx & Co. Limited took possession of their new factory at Ystrad Road, Swansea Industrial Estate, Fforestfach, West Glamorgan in September 1948. In 1967, the UK Company was bought by Dunbee Combex and continued to produce Marx toys under the name of Louis Marx and Company Limited until 1976.

British Marx Trains
British Marx 'O' gauge LMS Coronation Clockwork Powered Articulated Passenger Steam train
British Marx 'O' gauge Postwar #3978 Mar Lines 0-4-0 steam outline electric powered loco, tender, two LM 1st class coaches British Marx 'O' gauge LNER Silver Link Clockwork Powered Articulated Passenger Steam train

After the war, Marx came back as the world's largest manufacturer of toys, producing mechanical toys, model trains, toy guns, cars, ride-ons, play sets, and doll houses. During the 1940's Marx was producing trains in both 'O' gauge and HO gauge. They offered complete sets, and a line of accessories that included signals, crossing gates and building structures. The company grew even stronger into the "Golden Era" of the 1950's. By 1955, Marx produced over 20% of all the toys sold in the U.S., and had factories in ten different countries, including Japan, with divisions such as Linemar. The Linemar subsidiary produced Marx 'O' gauge #666 die-cast 2-4-2 Steam Locomotive and Southern Pacific tender made 1955 and distributed mechanical and battery operated toys for a much less expensive cost than those produced at Marx's US based manufacturing facilities. Linemar went out of business however by the late 1960's. Marx also distributed toys produced by manufacturers in Germany, including those from Distler. This may have been pushed upon by toy makers of war damaged countries needing a strong re-start and presence in the US. Marx continued developing its scale line of trains with more cars and a larger diecast locomotive, the #666. Soon came the #333, a long, scale model of the popular Pacific type locomotive.

Marx O gauge Tin Litho Military Trains
Marx 'O' gauge Army Trains - 6 inch tinplate cars with olive drab painted frames

In 1950 Marx was challenged by a toy making competitor named Unique Art who introduced a low cost line of lithographed tin 'O' gauge toy trains, using tooling of its own design along with some recycled tooling it acquired from the defunct Dorfan Company. Like Marx, Unique sold its trains in inexpensive ready to run boxed sets that included track and a transformer. The Unique Art line featured 4 wheel cars similar to Marx's, but at 7½" long, these cars were slightly bigger in size than Marx's tinplate litho 6" freight cars. Unique's president, Sammy Bergman, was a good friend of Louis Marx, and the two men's companies at times cooperated, with Marx providing tooling to Unique and sometimes acting as a distributor for Unique's products. Louis Marx saw the development and sale of toy trains by Unique as a betrayal and responded by creating a new 7" tin-litho 4-wheel 'O' gauge Marx line that featured plastic knuckle couplers. One of the highlights of the new 7" Marx offerings were a few multi-colored box cars whose lithography rivaled the designs of Lionel's famous 6464 series box cars. These Marx box cars included the red, white and blue State of Maine car and a red Pennsylvania Merchandise Service car. Needless to say, Unique Art stopped producing its trains after only 2 years. Marx's 7" 4-wheel trains proved unpopular, and their life span was brief as well. Many Marx operators have been known to modify the 7" 4-wheel trains with 3/16" scale trucks, to add variety to their 3/16" collections and freight consists.

Marx 'O' gauge #9452 B&O AA Diesel freight set with 7 inch cars from the 1950's
Marx 'O' gauge 7" Freight Cars
Marx 'O' gauge 7 inch Southern Pacific Caboose Rd#1235 Marx 'O' gauge 7 inch #36000 C&O Gondola circa 1955-57 Marx 'O' gauge 7 inch #4484 BAR Bangor-Aroostock State of Maine Box Car

Marx tinplate lithographed Monon #81F A Unit diesal in 'O' gauge Marx's marketing strategies included mass production and mass marketing through chain stores, reproducing new toys from basic components and repackaging existing products using television or movie tie-ins. Up until 1959, Marx had resisted the use of a newfangled invention called television to promote his products. After reconsidering, he decided to go after the TV market in a big way. His plan was to reach 27 million kids with a massive television ad campaign of toy commercials over a three-month period, strategically placed during the summer holidays. Exposure to this blitz was estimated to exceed one billion. This exposure prompted Marx to create a company mascot, known to many as Magic Marxie. This campaign helped to make Marx even more of a household name.

Marx 'O' gauge Plastic Trains
Marx 'O' gauge #13975 A.T. & S.F. Plastic Shell Stock car Marx 'O' gauge #5543 Gulf double tank Plastic flat car 1955-74 Marx 'O' gauge #347100 Pennsylvania RR Plastic gondola made 1952-73 Marx 'O' gauge #18326 Penn Central Plastic caboose
Marx 'O' gauge #467110 Baltimore & Ohio Plastic Shell Box car made 1950's Marx 'O' gauge #43461 P.F.E. Pacific Fruit Express Operating Plastic Shell Refrigerator car made 1955 Marx 'O' gauge #4528 Erie Flat Car with 2 Farm tractors made 1956 Marx 'O' gauge #5586 W.P. Western Pacific Plastic Shell Work Caboose made 1957

Marx began to convert from using stamped steel to plastic in 1952. Marx's principle concern was maximum production and quality at the lowest price. As a result there were endless variations of products. Additionally Marx often did not place catalog numbers on many trains. The first offerings were 1:64 scale for 'O' gauge track operation. Early versions were fitted with the 3/16" scale trucks that the tinplate cars had come with, but later versions had larger trucks. A few had 4-wheels. In an attempt to present realism, on some plastic trains that were equipped with only 4 wheels, Marx simulated real 4-wheel trucks with plastic molded wheelsets in the car shells. The 4-wheel plastic line replaced Marx's original 6" line of tin-litho trains. The initial plastic sets issued by Marx were unmarked but came with accurate railroad decals that could be applied by the consumer.

Marx 'O' gauge #1998 ATSF Plastic Shell S2 Diesel Switcher In 1956 Louis Marx & Co. acquired the former tooling of Hafner. This tooling had become the property of All Metal Products Co., the manufacturers of Wyandotte toy trucks and cars in 1951. All Metal Products Co. had been selling the remaining Hafner inventory and using the tooling to make new trains which were marketed under the Wyandotte name. The Wyandotte trains competed in the marketplace directly with Marx products. Louis Marx essentially acquired Wyandotte so that he could eliminate this competitor. Marx cleverly shipped the Wyandotte train tooling to its subsidary in Mexico for production in an isolated market to keep it out of the hands of any other would be competitors.

By now Marx was producing toy-like trains for young children, colorful entry level trains for older children, and a deluxe line for more serious rail hobbyists. The deluxe line featured more detailed rolling stock such as automobile carrier box cars, trailer-on-flat cars, open framed auto carriers and depressed center cars. Better locomotives appeared in the form of plastic shelled E7 diesels, Alco S2 switchers, and a General Electric 70-ton switcher with four drive wheels but simulated 4-wheel trucks. The diesels used the same time-tested Marx double reduction motor, with different wheels.

Marx 'O' gauge Santa Fe #1095 passenger set with 2 #1095 E7 AA diesels and three 7 inch passenger cars - 2 #3152 coaches's and a #3197 Observation car made 1952

Marx decided to enter the HO market in 1957 by releasing an extensive line of HO scale model trains. Offerings included F3 diesels, an 0-4-0 Sadle Tank loco, an 0-4-0 hustler diesel yard switcher, a GP-9 diesel, and a 4-6-4 Hudson along with freight cars and streamline passenger cars. These trains proved successful, more so than Lionel's and A. C. Gilbert/American Flyer's offerings from that period. While not as detailed as premium brands like Athearn's offerings, the Marx products provided a fair amount of scale fidelity at a great price. After Marx failed, Model Power purchased all the HO tooling and continued to use it to produce its starter sets, putting its own lettering on the original Marx designed shells.

In an attempt to cash in on the popularity of TV westerns, in 1959 Marx created its 4-4-0 William Crooks 1860's style 'O' gauge locomotive. This was a plastic molded model of the actual prototype, a St. Paul and Pacific steam engine that still exists. Previously, Marx had achieved success with licensing its products, unfortunately the decision to package the William Crooks train in a set themed after the TV show 'Tales of Wells Fargo' did not prove Marx 'O' gauge #1 William Crooks electric steam outline 1860's era 4-4-0 loco and Tales of Wells Fargo tender made 1959-60 successful. Although the show ran for 5 years, it was not as popular as other westerns like Gunsmoke or Bonanza. Timing was opportune as 1959 was the peak year for TV westerns, but a wiser choice in licensing would have improved sales. The set was only offered exclusively through Montgomery Ward for 2 years and is considered to be very rare by collectors. Marx brought the William Crooks style 4-4-0 western era locomotive back in 1962 powered by a clockwork drive. This time the loco came with a tinplate tender marked '1st. Divn. St. P. & P.R.R.' In 1973, Marx issued its heritage train set, sold through Sears Roebuck, that featured a simplified William Crooks loco without its leading 4-wheel truck, no smoke unit, and a shortened smoke stack. It was packaged with a plastic tender lettered '1st. Divn. St. P. & P.R.R.' and old-style plastic train cars.

Marx 'O' gauge William Crooks Wells Fargo Set 7" Tin Litho Passenger Cars
Marx 'O' gauge William Crooks set 7 inch tin litho #1 St. Paul & Pacific Baggage car Marx 'O' gauge William Crooks set 7 inch tin litho #3 St. Paul & Pacific Pullman

In the 1960's Marx's toy line capitalized on the space toy and robot craze. It produced the Big Loo "Your friend from the Moon" in 1964 and originated the popular Rock 'Em Sock 'Em Robots. There were even a few train cars issued with space age themes, such as the #X-246 Chemical Rocket Fuel tank car, the #1796 Rocket Launcher flat car, the #1799 USAX gondola, and the #1963 Missile Control Center caboose. To pull these cars in sets, Marx issued a #1798 Cape Canaveral Express 0-4-0 small 70 Ton diesel switcher locomotive. In 1963, Marx began making a series of plastic figurines called the Nutty Mads which included some almost psychedelic creations such as Donald the Demon: a half duck half madman, driving a miniature car. A Flintstones play set train was also developed.

Marx 'O' gauge #1029 Santa Fe 4-6-4 Hudson Plastic Loco circa 1950's During the post-war era, the Marx locomotive lineup consisted of the #666 diecast and #1666 plastic counterpart 2-4-2 steamers, the #333 diecast 4-6-2 Pacific, its #1829 plastic counterpart and the #1029 plastic 4-6-4 Hudson, the #400 and #490 cheap steamers, the #6000 series tin-litho AA units, the plastic E7 diesels in ABA configurations, the plastic S2 and 70-ton diesels, and the William Crooks 1860's era 4-4-0 steamer in plastic. The most common road names found on Marx locomotives are New York Central, Santa Fe, Union Pacific, Western Pacific and Southern Pacific. The #333 locomotive with its 4-6-2 wheel arrangment was the largest steam locomotive ever produced by Louis Marx & Co. Freight cars bore many of the same names, plus Baltimore & Ohio, Rock Island, Penn Central and Erie. One non-road is Allstate, a trademark of Sears used in making sets for the catalogue vendor. 2 road names that appeared on Marx trains that were not widely seen on competitors products were Kansas City Southern and Seaboard. The Seaboard Coast Line paid for the tooling of the Marx double-door deluxe boxcar, which was to be sold as a model of one of their trains. Seaboard was promoting freight service via those cars at the time.

Marx 'O' gauge #35150 NYC Passenger Set with #333 die-cast 4-6-2 Pacific Loco, New york Central tender, #234 Pullman, #234 Vista Dome car and Meteor Observation car circa 1950's

Most Marx electic powered locomotives were equipped with a simple 'E' unit for reversing direction of the motor. However, less expensive locomotives did not have a reversing mechanism. The Marx 'E' unit was only capable of forward and reverse. Unlike other manufacturer's 'E' units, there was no neutral position. Marx's better steam outline locos were also equipped with a smoke unit. These smoke units operated on liquid fluid placed directly into the loco's smokestack. When the loco was running, a heating element would turn the liquid into smoke and provide the effect of a smoking steam locomotive. In some less expensive sets, Marx experimented with a different type of smoke unit that used what was referred to as an airbulb. A packet of baking powder was included with the set. The baking powder could be poured down the smoke stack on the locomotive onto the airbulb. There was a bellows mechanism attached to the motor, and when the loco was in motion, smoke was supposed to puff out of the smokestack. These units did not operate very well.

Marx 'O' gauge #2002 & #2003 Plastic Shell New Haven E7 AA Diesel Units Made 1960-74 In 1972 Louis Marx sold his company to Quaker Oats Company for $54 million ($359 Mil. in 2021 dollars) and retired at the age of 76. Quaker Oats continued production until 1975. Quaker owned the Fisher-Price brand, but struggled with Marx. Quaker had hoped Marx and Fisher-Price would have synergy, but the companies' sales patterns were too different. Marx has also been faulted for largely ignoring the trend towards electronic toys in the early 1970's. In late 1975, Quaker closed the plants in Erie and Girard, and in early 1976, Quaker sold its struggling Marx division to the British conglomerate Dunbee-Combex-Marx, who had bought the former Marx UK subsidiary in 1967. The complete inventory from the Pennsylvania plant of 700 assembled Marx double reduction geared remote reverse electric motors was sold to the United States Toy Train Company (USTTC) in California when Quaker exited the toy train business. The basic Marx motor was famous for never wearing out and for running smoothly at low speeds.

A downturn in the British economy in conjunction with high interest rates caused Dunbee-Combex-Marx to struggle, and these unfavorable market conditions caused a number of British toy manufacturers, including Dunbee-Combex-Marx, to collapse. By 1978 the Marx brand disappeared, and Dunbee-Combex-Marx filed for bankruptcy and was liquidated in 1980. The Marx assets were then liquidated, with many of the patents and molds going to Mego Corporation, another famous maker of dime store toys, and a large number of them going to Canadian toy maker Aurora. The tooling for making the reliable Marx double reduction geared electric motors was sold to Soviet Russia. American Plastic Equipment of Florida resurrected the Marx name by acquiring the company's assets in 1982, and intellectual rights in 1988. By that time, the value of Marx toys and play sets had skyrocketed in the collector markets, which in turn triggered a demand for the toys to be reissued.

The rights to some of Marx's toys are now owned by other companies, and some of its former products are still in production. Many of the Marx train dies were purchased by MDK, who changed only the name imprint, and as K-Line produced plastic 'O' scale train cars and scenery using former Marx molds, which it marketed under its own brand name. K-Line's original version of the S2 switcher and RDC BUDD car were based on recast Marx body shells. The K-Line 4-6-2 steam outline loco also used original Marx #333 molds and tooling and the Marx #1829 was used by K-Line for their 4-6-4 in a couple of their circus sets. K-Line recast many Marx accessories, including the operating barrel loader, operating diesel fueling station, operating switch tower and operating crossing gate. K-Line street lamps were Marx recasts, too. In their line of K-LineVille buildings, you can find Marx as the supermarket, police station, school, fire house, airport hangar, L-shaped farm house, ranch house, colonial house, farm and barn, church, water tower, grade crossing, unpainted people and farm animal figures, cars and telephone poles. All these original Marx designs became the property of Lionel in 2006 when K-Line's assets, including its inventory, intellectual property, tooling, and trademarks were acquired. The 1950's Marx #333 steam loco was put back into production by Lionel in 2019.

Marx Toys, Inc., was sold and transformed into 'Marx Toys & Entertainment, Inc. Marx Trains, Inc. produced lithographed tin trains, both of original design and based on former Louis Marx designs. The Marx trademark became the property of American Plastics of Sebring, Ohio in 1992, and was licensed to James and Debby Flynn of Addison, IL., who made newly designed stamped steel 'O' gauge Marx locomotives and rolling stock in the original vintage tin litho-style starting in 1993 until 2004. These trains were not reproductions and were mechanically different from the originals. Collectors often refer to this period of train production as Modern Marx. The Flynn's sold the rights to Ameritrains in 2004. There was only limited Ameritrains production thereafter and the line faded away after 2007. Model Power produced HO scale trains from old Marx molds for many years. In 2018, Model Power's tooling was acquired by Lionel. Rights to the original Marx Big Wheel are owned by KidsWheels, Inc., and Rock 'Em Sock 'Em Robots was claimed by Mattel. Marx's toy soldiers and other plastic figures are in production today in China for the North American market and are mostly targeted at collectors, although they sometimes appear on the general consumer market, particularly at dollar stores.

Marx tinplate lithographed clockwork Bunny Express train set in 'O' gauge cica 1930's The Marx name changed hands several times. Despite the similar names, none of the more recent Marx-branded companies had any connection to the original Louis Marx and Company. Louis Marx died in 1982 at the age of 85, however his memory long remains in what he has left the world. He has often been referred to as the Henry Ford of the toy business. Antique Marx trains remain popular amongst collectors today, and are usually widely available at bargain prices. Marx items that failed to sell well are the most rare and collectible today due to their scarcity and limited production. The 'Bunny Express', a 1936 tin toy mechanical train with a rabbit-shaped engine and open cars instantly flopped when it was released for the Easter season. Only a very few were made, so collectors covet this item!

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