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I also have a bunch of K-Line, great stuff. I have the NYC ABA FA-1 set with both A units being powered, as well as a Allegheny loco which is a beauty.:smilie_daumenpos:
 
A little history for K line was it was founded in 1975, as a competitor to Lionel. During the Postwar period, Lionel was progressively going downhill, but there were legal battles between K line & Lionel, for patent infringements. To settle the disputes, Lionel was able to purchase all of K line, and was settled Feb. 16, 2006. When Lionel was headed into its own bankruptcy, they sold off all of the Kline tooling to Sanda Kan, from China. When the licensing for Lionel expired at Sanda Kan, they sold all of the dies to Atlas, Bachman, & RMT.
Actually Lionel was allowed to use K-Line tooling for approx 2 years to satisfy their claim against K-Line, they never owned the K-Line tooling. One of the stipulations was that Lionel had to complete the last KLCC diesel that had been paid for by KLCC members. It was the AT&SF SD75 in warbonnet colors. In a twist of irony the last KLCC locomotive was finished and delivered by Lionel.

The K-Line tooling was then acquired by Sanda Kan for compensation for moneys owed to them by K-Line. When Sanda Kan went into bankruptcy, Kader Industries ( parent company of Bachman ) purchased the K-Line tooling through the bankruptcy court. Kader Industries sold some of the tooling to Atlas, leased some of the tooling, and kept some of the tooling.

Bill
Sanda Kan owned the K-Line tooling. They were making the trains for K-Line. When K-Line ordered more than they could pay for, Sanda Kan withheld shipment.

The Lionel lawsuit was another nail in the coffin of K-Line. If I recall correctly, K-Line had copied a small Lionel transformer and was sued by Lionel. However, Lionel and K-Line came to an agreement to end the lawsuit and allow K-Line to produce the item, probably for a fee. But Maury Kline, not wanting to cave to Lionel, sent out a press release of the settlement that was at odds with what Lionel agreed to. Thus, Lionel pulled the deal, and along with the Sanda Kan problems was the end of K-Line.

Since it was Lionel that helped put K-Line out of business, after a near rebellion of K-Line Club members wanting their SD75 produced that they paid for, Lionel offered to complete those orders using the Sanda Kan tooling. For about two years Lionel leased some of the tooling for lower end and a few higher end train items under the "K-Line by Lionel" banner.

There was hope Lionel would continue to produce the scale passenger cars. It was even announced at York that they planned to, but it never happened. Only the scale Texas Special set, with matching E7's was made.
 
Pete, your Mikado and E8 are really nice. I had K-Line NYC E (or maybe it was a F I don't remember) AA units, but I traded them for a Williams Rock Island F AA units.
 
As David said, K-Line was ahead of its time. One instance is their later F7s. They included different pilots which to my knowledge no had before nor has done since,
They came with the familiar truck mounted pilot and big coupler. They also included a body mount pilot which could accommodate a scale coupler or cover door pictured here. The ABA set came with 4 motors and cruise. Compare to Lionel's latest F3s.



Pete
 
In the early '90s K-Line had Intermountain make a few reefers for them. Intermountain cars are the equal or better than brass in the detail department. Some detail was omitted to accommodate the three rail trucks but still more than any made until Atlas bought the Intermountain O scale line.



Pete
 
At a 2 rail meet last year, and this year on the consignment table at the LHS, I have purchased some K Line rolling stock.

I saw on the recent purchases, K Line by Lionel. Yet I do not see any "new" K Line on the shelves of the LHS.

What is K Line and it's history?
Here's some more history and a bit of detail about the legal issues:

https://en.wikipedia.org/wiki/K-Line
 
K-line did what others did not. I have two locos, a 4-6-4 tank engine and a plymouth switcher. Both see lots of time on the track. Both have not been duplicated by the major players.
 
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