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The very first "model locos" actually used bits of coil for firing them up. The models were miniature demonstrators used by the loco manufacturers to be shown to potential customers. Later on, the engines used either alcohol or paraffine tablets for fuel. Clockwork driven engines entered the market in the 1890´s, one of the first, if not the first one being Marklin´s famous "Stork Leg" loco. Battery powered locos did not arrive before the late 1950´s, nearly 70 years after "the hobby was invented". They were never meant to be "serious" model trains, but rather cheap toys with a very short service life.
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