In the 1 85 1 annual report of the Madison and IndianapoKs Rail- 

 road, dated March 10, 1852, it was reported: "Messrs. Niles & Co. 

 of Cincinnati, were not able to deliver two freight engines during 

 the year. One of them has since been taken by the Dayton and 

 Western road, and the other we expect to receive within a few days." 

 However, a study of later reports of this company failed to reveal 

 any Niles locomotives on its roster. A few Niles engines were re- 

 ported on the Dayton and Western Railroad when it was leased by 

 the Little Miami Railroad in 1865. Unfortunately, the date of their 

 construction was not mentioned, so it is impossible to determine 

 whether they were among the first locomotives built by Niles. 



On August 8, 1 85 1, the Cincinnati Gazette announced: 



On Congress Street, east of Butler, the Messrs. Niles have made a pur- 

 chase of a large lot, near half a square, from Charles Fox, Esq., and have 

 commenced the construction of a large foundry and machine shop (an 

 addition to their already mammoth establishment on Front Street). 

 This new building and yard is to be devoted, we are informed, to the 

 manufacture of locomotives and cars for railroads. 



With the completion of this new shop, the Niles brothers began to 

 operate two businesses. The old shop on East Front Street became 

 known as the Niles Works (later Niles Tool Works) and was devoted 

 to the production of sugar mills, machine tools, and other products. 

 The Niles Works was a joint stock company which was comprised, 

 in addition to the Niles brothers, of the following partners : Leander 

 H. Carey, Stephen Allen, S. H. Oilman, and Charles W. Smith. 

 The new shop on Congress Street was under the direct proprietor- 

 ship of James and Jonathan Niles; it was there that most, if not all, 

 of the locomotive work was done. 



By early 1852 Niles & Company was in full production of locomo- 

 tives, a fact amply witnessed by the number of engines built. Fully 

 ten Niles locomotives are listed in the annual reports of various 

 roads for that year, and more were certainly built. Business was 

 such that the proprietors were encouraged to increase locomotive 

 production. 



As previously mentioned, Coleman Sellers joined the firm in 

 January 1852 after the failure of his brother's business. He was 

 hired as an accountant and timekeeper. At that time Z. H. Mann, 

 mentioned in connection with Anthony Harkness, w^as in charge 



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