of their sugar-mill manufacturing business, which had been to this 

 time their major line. Not only was railway engine building lucra- 

 tive, but the Niles were becoming discouraged with the southern trade, 

 whose poor credit record now required them to demand a 50 per- 

 cent down payment. This in turn discouraged the capital-poor 

 Louisiana planter from purchasing Niles machinery.'^" 



During 1853 the American Railroad Journal reported that the Niles 

 were building two or three locomotives per month ;i^' the next year 

 they built over 40. 1^" The Railroad Advocate gave a bright report on 

 the Niles: 



The West is fast becoming competent for the supply of the equipments 

 of her own roads. First in starting, and in its present extent, is the 

 large Establishment of the Messrs. Niles & Co., of Cincinnati; which 

 of late years has been extensively devoted to the manufacture of Loco- 

 motives and Railroad Machinery. On a visit to Cincinnati, we were 

 not prepared to find so large and so well arranged and well equipped 

 works as theirs, engaged in the business. We owe an apology to the 

 West for such a confession, but we had, until then, supposed that nearly 

 all Western roads were dependent on the East for Locomotives. We 

 learned our mistake, however, by a little observation upon some of the 

 leading roads of Ohio. We found, not only upon these roads, but in 

 the shops of the Messrs. Niles & Co., Engines of the best construction 

 and capabilities. 



Being a little critical in such matters, we took occasion to observe the 

 strength and permanence of the cylinder-fastenings of these engines, the 

 strong and durable framing employed, and the excellent fitting-up of 

 the link-motions. All the joints about the links and valve gear are made 

 with provision for being kept up in close and accurate adjustment, and 

 are well case-hardened to provide against wearing. The materials, 

 procured in Cincinnati, are also of the best kind. Altogether, it is 

 creditable to the West to possess so complete and extensive works de- 

 voted to a most important branch of industry, and it is creditable to a 

 greater degree that these works have attained to an honorable distinc- 

 tion for the excellence of their productions."^ 



i^«G. E. Sellers to Horatio Allen, June 15, 1853, Peale-Sellers papers. Sellers 

 suggested that Allen might be interested in taking over the sugar mill line for pro- 

 duction at the Novelty Iron Works. Apparently he was not interested. 



1^^ (October 15, 1853), vol. 9, p. 666. 



i*s Railroad Record (March 1855), vol. 3, p. 86. 



1*9 (November 18, 1854), vol. i, p. i. 



97 



