The Ives Manufacturing Company, an American toy manufacturer from 1868 to 1932, was the largest manufacturer of toy trains in the United States from 1910 until 1924, when Lionel Corporation overtook it in sales.
Ives was founded in Plymouth, Connecticut by Edward Ives, a descendant of Plymouth colony governor William Bradford. The company initially produced paper dolls whose limbs moved in response to hot air, but soon began producing a wide range of toys, including a toy cannon that shot using real gunpowder and clockwork powered dolls and animals that could move. The clockwork toys were designed by Jerome Secor, Nathan Warner, and Arthur Hotchkiss and by the 1880s, Ives was a leading producer of these toys.
Its emphasis shifted to trains as its designs were copied by other toymakers who were willing to sell them more cheaply. Ives' trains were made of tin or cast iron and initially powered by clockwork, but like later electric trains, some models could whistle and smoke.
On December 22, 1900, a disastrous fire struck and destroyed the Ives & Williams Company main factory destroying the building and all the patterns, parts and tools for manufacturing the cast-iron toys. The fire prompted a re-design by William R. Haberlin for 1901 that resulted in Ives' first toy train that ran on track. In 1901, The Ives Manufacturing Company, in rented space from William R. Haberlin and Timothy F. Hayes, began producing the first "O" gauge trains in the United States to run on fabricated sectional track. The trains were powered by clockwork machinery inside the toy, and sales for the year totaled $2,600.00. During that year and 1902, the die stamping production of trains, cars and track was subcontracted out to Haberlin and Hayes Bridgeport Tool & Die. In the end the fire benefited the Ives Manufacturing Company, as the insurance money permitted it to build a modern factory with state-of-the-art tooling.
Although several companies were selling electric trains at the time, Ives opted to remain with clockwork, partly because many U.S. homes still lacked electricity.