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Inc. Magazine's Article on the MTH vs. Lionel Trial

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Posted by Anonymous on Monday, January 24, 2005 7:49 AM
In talking with mfg's that I know, the basic comment as they do not want to commit their strongest feelings to the public is this, "it is not going to do the hobby one bit of good and will tend to stifflel new ideas for fear of a lawsuit".
Most will agree if I say it, is this my question 1st, would you like to see Mike Wolf pursue some other non toy train related company? and the answer is this, "yes".
This is from the ceo;s of 3 major players.
It is just too bad it happened as it has polarized the discussions with one of my best friends as he is pro MTH and I am anti MTH. We now have to limit our discussions to other topices.
I truely feel this is happing all over the industry. One fellow even told me he wished someone would take a gun to Mikes head. Now that is geeting real scarry and this guy is very radical anyway.
Just not a good thing. Dave.
I VERIFY ALL STATEMENTS MADE HERE WHERE HEARD BY ME AND ARE NOT MY IDEAS, JUST REPEATING 1ST HAND CONVERSATIONS.
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Posted by Anonymous on Monday, January 24, 2005 7:24 AM
"It seems that I've joined a dying hobby."
---------------------------

Dying hobby? Not likely!

The hobby only dies if it dies for you, as an individual. It matters not if nearly all of the manufacturers in O gauge go out of business tomorrow. The hobby will still be around for as long as there are individuals who enjoy playing with, and collectiing, toy trains.

When I got back into O gauge in the late 70s, there really was just one manufacturer of any significance around: Lionel. But there was still a very active hobby community at the time, even though none of us dared even dream that we would see a phenomenon like that which was evidenced in the mid-90s to the present.

If you really enjoy toy trains, the hobby will be around for as long as you want it to be around. No need to worry about the future.
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Posted by Anonymous on Sunday, January 23, 2005 8:24 PM
Other than the issues of profit/losses in the toy train business, the article was more sad and depressing than truely informative. BTW, there is more than one suit in the pipeline, this is just the first.
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Posted by jimhaleyscomet on Sunday, January 23, 2005 8:18 PM
Of course sitting down to negotiate after one (MTH) wins a major lawsuit might make for a fun discussion (for MTH). Suppose they will ever sit down and try to work this out?

Jim H
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Posted by TurboOne on Sunday, January 23, 2005 2:31 PM
Many words of wisdom here. For me this subject is like sports. I used to be a huge sports fan. Could live without it. Now, with lawyers and money more important then the game, with owners and players not caring about the fans, just the money, I realize it is a business only. Now I watch when I get a chance.

Hopefully trains don't get as dumb as that. You think the two companies could have sat down, talked it out and worked it out. Suing the company that you "love" doesn't seem right. Think you could have worked it out.

Oh well, playing trains is fun, and that is what I am going to do.

Tim
WWJD
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Posted by Anonymous on Sunday, January 23, 2005 2:20 PM
I have had a chance to read a little about this. I'm new to the hobby. I'm one of those "youngsters" that everyone is always saying that the hobby needs. It seems that I've joined a dying hobby. Oh well. I like what I'm doing. I've got the type of trains that I like and I'm not really interested in all of this fighting and name calling that goes on. I got into the hobby because it is something that has been handed down through my family like a custom and it is fun and interesting. The newer stuff that is out today is more like a luxury car than a relaxing toy. I may only be in my twenties but I have read enough to know that the companies today are not what they used to be. It's like that with the car companies too. Stuff is too expensive too cheesy and not close to being as much fun as the older stuff. The only winner in these lawsuits are the lawyers and the big businessmen. Look at Enron and Worldcom. When this is all over the only thing that will be different is the prices will go up to pay the lawyers and big guys.
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Posted by nblum on Saturday, January 22, 2005 10:08 PM
The article is well done and interesting. There are some really facscinating comments made directly by Mike Wolf. One is that looking at the outside of the C&O Allegheny is how he knew Lionel's vendor had used MTH's plans. The trial was completely about mechanical and electrical designs and those are not even mentioned in the article, by the writer or MTH. Hmmmmm. The second is that Mike Wolf states that by far the largest drop in profits (over $5 million) occurred between 1999 and 2000. That period corresponds to perhaps 2-3 locomotives at most with designs involved in the lawsuit. How did tens of millions of claimed damages occur, or even 5 million, from the production of a few locomotives that amounted to perhaps a few hundred thousand dollars in profit margin? Hmmmm.

The article portrays a chaotic and demoralized industry and hobby, torn asunder by the partisan passions of the participants. I think that is accurate and has started to affect the attitudes of dealers and consumers as well. All in all, a very telling and sad story, accurately told, IMO.
Neil (not Besougloff or Young) :)
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Posted by Anonymous on Saturday, January 22, 2005 6:37 PM
I'm offering photo copies of the article because Inc. magazine may be difficult to find in certain parts of the country. I feel that it was one of the best articles yet on the trial and it contains some new behind-the-scenes revelations worth reading about.

It appears as if Inc. magazine, unlike some other sources, didn't ru***o get the information out to their readers. So, it will be interesting to see if the subsequent issue will have any "foot-in-mouth" retractions, revisions or corrections to this article.

By the way, the article's intro reads like this..."Mike Wolf always dreamed of running toy-train icon Lionel. Now he's locked in a death struggle with the company he loved. A report from model railroading's trial of the century Train Wreck, by John Grossman."
BillFromWayne
www.modeltrainjournal.com
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Posted by Anonymous on Saturday, January 22, 2005 10:25 AM
Hey Buckeye, you should appreciate Bill's offer.

pax
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Posted by spankybird on Saturday, January 22, 2005 8:13 AM
Buckeye, Bill is offering us a copy of it.

Bill - I sent you my snail mail address, thanks

tom

I am a person with a very active inner child. This is why my wife loves me so. Willoughby, Ohio - the home of the CP & E RR. OTTS Founder www.spankybird.shutterfly.com 

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Posted by Buckeye Riveter on Saturday, January 22, 2005 2:08 AM
Yea, we know. See
http://www.trains.com/community/forum/topic.asp?TOPIC_ID=28521

Celebrating 18 years on the CTT Forum. Smile, Wink & Grin

Buckeye Riveter......... OTTS Charter Member, a Roseyville Raider and a member of the CTT Forum since 2004..

Jelloway Creek, OH - ELV 1,100 - Home of the Baltimore, Ohio & Wabash RR

TCA 09-64284

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Inc. Magazine's Article on the MTH vs. Lionel Trial
Posted by Anonymous on Friday, January 21, 2005 8:51 PM
The February issue of Inc. Magazine ran a feature article on Model Railroading's Trial of the Century: The MTH vs. Lionel trial

If you would like to read the article yourself, but can't find a copy of the magazine on your newsstand, send me an email with your mailing address and I'll send you a photo copy via. snail mail.

BillFromWayne

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