American Locomotive Company

The consolidation of the seven manufacturers was the brainchild of financier Pliny Fisk Sr. of the brokerage house Harvey Fisk & Sons. The consolidated Alco was intended to compete with Baldwin Locomotive Co. which controlled two-fifths of the industry.

The new company was headquartered in Schenectady. Samuel R. Callaway left the presidency of the New York Central Railroad to become president of Alco. When Callaway died on June 1, 1904, Albert J. Pitkin succeeded him as president of Alco.

In 1904, the American Locomotive Company acquired control of the Locomotive and Machine Company of Montreal, Quebec, Canada; this company was eventually renamed the Montreal Locomotive Works. In 1905, Alco purchased Rogers Locomotive Works of Paterson, New Jersey, the country's second-largest locomotive manufacturer behind Baldwin Locomotive Works.

Steam era

Alco produced more than 75,000 locomotives, including more steam locomotives than any U.S. company except Baldwin Locomotive Works. (Alco outlasted Baldwin, in part by shifting more readily to diesel.) Railroads that favored Alco products included the Delaware & Hudson Railway, the New York, New Haven & Hartford Railroad, the New York Central Railroad, the Union Pacific Railroad and the Milwaukee Road. Among Alco's better-known steam locomotives were the 4-6-4 Hudson, 4-8-2 Mohawk, and the 4-8-4 Niagara built for the New York Central; and the 4-8-4 FEF, the 4-6-6-4 Challengers and the 4-8-8-4 Big Boys built for the Union Pacific.

Alco built many of the biggest locomotives ever constructed, including Union Pacific's Big Boy (4-8-8-4). Alco also built the fastest American locomotives, the Class A Atlantic and Class F7 Hudson streamliners for the Milwaukee Road's Twin Cities Hiawatha run. Among the ambitious state-of-the-art designs of the late steam era, Alco's Challengers, Big Boys, and high-speed streamliners stood out for their success in operations.

Alco built the second production steam locomotive in North America to use roller bearings (after the Delaware & Hudson's 1924 addition of SKF roller bearings to the drivers and main and side rods of their own 4-6-2 locomotives). This was Timken 1111, a 4-8-4 commissioned in 1930 by Timken Roller Bearing Company and ultimately used for 100,000 miles (160,000 km) on 15 major United States railroads before it was purchased in 1933 by the Northern Pacific Railway. The Northern Pacific renumbered the Four Aces to No. 2626 and ran it on the North Coast Limited, as well as its pool trains between Seattle, Washington, and Portland, Oregon, and excursions, through 1957.

During World War II, Alco produced many 2-10-0 Decapods for the USSR. Many went undelivered, and ten of these were sold to Finland in 1947. One, Alco builder's No. 75214, is preserved at the Finnish Railway Museum.

Though the dual-service 4-8-4 steam locomotive had shown great promise, 1948 was the last year that steam locomotives were manufactured in Schenectady. These were the seven A-2a class 9400-series Pittsburgh & Lake Erie Railroad 2-8-4 "Berkshires." Their tenders had to be subcontracted to Lima Locomotive Works, as Alco's tender shop had been closed. The building was converted to make diesel locomotives to compete with those of the Electro-Motive Division of General Motors.

Joseph Burroughs Ennis (1879–1955) was a senior vice president between 1917 and 1947 and was responsible for the design of many of the company's locomotives.

Alco automobiles (1906–1913)

The company diversified into the automobile business on July 1, 1905, producing French Berliet designs under license. The license was acquired for a duration of three years and covered the Berliet types G and H. With the payment of 500,000 gold francs, the production of the G and H types with engine outputs of 20 hp, 40 hp, and 60 hp was covered, as well as the supply of cast and forged parts. The successful licensing deal with Berliet led to a new logo for Berliet featuring a locomotive. However, Berliet's entry into the railway sector did not occur until the 1920s. Production was located at Alco's Rhode Island Locomotive Works in Providence, Rhode Island.

Two years later, the Berliet license was abandoned, and the company began to produce its own designs instead. An Alco racing car won the Vanderbilt Cup in both 1909 and 1910 and competed in the first Indianapolis 500 in 1911, driven on all three occasions by Harry Grant.

Alco's automotive venture was unprofitable, and they abandoned automobile manufacture in 1913. The Alco automobile story is notable chiefly as a step in the automotive career of Walter P. Chrysler, who worked as the plant manager. In 1911 he left Alco for Buick in Detroit, Michigan, where he subsequently founded the Chrysler Corporation in 1925.

Alco Model 5t Truck

Electric locomotives

Alco made 60-ton center-cab electric freight motors from 1912 through the 1920s for electric railway lines in Oregon.

Diesel–electric locomotives

Already a leader in steam locomotives, Alco produced the first commercially successful diesel–electric switch engine in 1924 in a consortium with General Electric (electrical equipment) and Ingersoll-Rand (diesel engine). This locomotive was sold to the Central Railroad of New Jersey. It built additional locomotives for the Long Island Rail Road and the Chicago and North Western Railway.

The company bought the McIntosh & Seymour Diesel Engine Company in 1929 and henceforth produced its own diesel engines, though it always bought its electrical equipment from GE. The diesel program was largely overseen by Perry T. Egbert, vice president in charge of diesel locomotive sales and later president of the company.

In the early to mid-1930s, Alco was the pre-eminent builder of diesel–electric switch engines in the United States. It was slower than its competition to develop reliable diesel power for full-size mainline trains, though it did provide motive power for the Gulf, Mobile and Northern Railroad's Rebel streamliners in 1935.

In 1939, Alco started producing passenger diesel locomotives to compete with General Motors' Electro-Motive Corporation. The following year, Alco teamed up with General Electric (Alco-GE) for much-needed support in competing with EMC. In 1941, Alco introduced the RS-1, the first road–switcher locomotive. The versatile road–switcher design gained favor for short-haul applications, which would provide Alco a secure market niche through the 1940s. The entry of the United States into World War II froze Alco's development of road diesel locomotives.

During that time, Alco was allocated the construction of diesel switching locomotives, their new road–switcher locomotives, a small quantity of ALCO DL-109 dual-service engines and its proven steam designs, while EMD (formerly EMC) was allocated the construction of mainline road freight diesels (the production of straight passenger-service engines was prohibited by the War Production Board). Still, Alco ranked 34th among United States corporations in the value of wartime production contracts.

Alco's RS-1 road switcher was selected by the United States Army for a vital task: rejuvenating the Trans-Iranian Railway and extending it to the Soviet Union. This gave the U.S. ally a new supply line at a time when the German air force and navy had reduced Allied shipments to the Soviet port of Murmansk. The U.S. Army chose as locomotives the RSD-1, a six-axle, six-traction motor variant of the light Alco RS-1. Not only was the company prevented from selling these locomotives to mainline U.S. railroads, but the 13 RS-1s that had already been built were commandeered for Iranian duty and converted to RSD-1s.

Post-war era

The postwar era saw Alco's steam products fall out of favor while it struggled to develop mainline diesel locomotives competitive with EMD's E and F series road locomotives, which were well-positioned from GM-EMC's large development efforts of the 1930s and its established service infrastructure. Alco would prove unable to overcome that lead.

In 1946, Alco controlled 26% of the diesel locomotive market. The ubiquitous S series (660 and 1000 horsepower) switchers and RS series (1000 and 1500 horsepower) road switchers represented Alco well during the late 1940s. Much of its success in this period can be tied to its pioneering RS locomotives, representing the first modern road–switcher, a configuration which has long-outlasted Alco. The success of their switcher and road–switcher locomotives was not matched with the PA and FA-type mainline units, however.

The 244 engine, developed in a crash program to compete with EMD's powerful 567 engine, proved unreliable and sales of Alco's mainline units soon went into decline. In 1948, Alco-GE produced a prototype gas-turbine–electric locomotive to address the concerns of operators such as Union Pacific that sought to minimize the number of locomotive units needed for large power requirements. In 1949, Alco embarked on a clean-sheet design project to replace the 244. 1949 also saw the introduction of the EMD GP7 road–switcher, a direct challenge in Alco's bread-and-butter market.

In 1953, General Electric, dissatisfied with the pace of Alco's efforts to develop a replacement for the troubled 244 engine, dissolved their partnership with Alco and took over the gas turbine–electric venture that had started series production the previous year. In 1956, Alco made long-overdue changes, modernizing its production process and introducing road locomotives with its new 251 engine. However, the benefits to Alco were negated by bad timing; the market for locomotives was declining after the height of the dieselization era and EMD's GP9 was on the market as a proven competitor backed by a service infrastructure that Alco, since the dissolution of the GE partnership, lacked. Sales were disappointing and Alco's profitability suffered.

GE entered the export road-diesel locomotive market in 1956, then the domestic market in 1960, and quickly took the No. 2 position from Alco, and eventually eclipsed EMD in overall production. Despite continual innovation in its designs (the first AC/DC transmission among others), Alco gradually succumbed to its competition, in which its former ally, General Electric, was an important element.

India during 1960s began gradual withdrawal of Steam locomotives from Indian Railways so the Diesel electric locomotive WDM series was developed by Banaras Locomotive Works with help of American Locomotive Company (Alco) for Indian Railways. In 1962 Alco locomotives entered in service and since then Thousands of Alco class Locomotive WDM-2, WDM-3A, WDM-3D would be manufactured and rebuilt which would make most successful locomotives of Indian Railways serving both passenger and freight trains and still retain operational status for Indian railways today

A new line of Century locomotives including the 630 (the first AC/DC transmission), the 430 and the 636, the first 3,600 horsepower (2.7 MW) locomotive, failed to keep the enterprise going. Third-place in the market proved to be an impossible position; Alco products had neither the market position nor reputation for reliability of EMD's products, nor the financing muscle and customer support of GE. It could not earn enough profits. In the late 1960s, Alco gradually ceased locomotive production, shipping its last two locomotives, a pair of T-6 switchers to the Newburgh & South Shore Railroad (#1016 and #1017) in January 1969. Alco closed its Schenectady locomotive plant later that year, and sold its designs to the Montreal Locomotive Works in Canada. The vast Alco Schenectady plant was completely demolished by 2019, and its site is now occupied by a large industrial park.

Diversification

Alco diversified into areas other than automobiles with greater success. During World War II, Alco built munitions for the war effort, in addition to locomotive production; this continued throughout the Korean War. After the Korean War, Alco began making oil production equipment and heat exchangers for nuclear plants.

In 1955, the company was renamed Alco Products, Incorporated. By this stage, locomotive production only accounted for 20% of the business.

The first nuclear power plant connected to the electrical grid, the SM-1, was built for the Army Nuclear Power Program at Fort Belvoir in Virginia in 1957. Another complete plant, the PM-2A, was shipped to and constructed at Camp Century in Greenland. The Camp Century plant was filmed by the U.S. Army.

Purchase and division

The company was purchased in 1964 by the Worthington Corporation, which merged with the Studebaker corporation in 1967 to form Studebaker-Worthington, Alco remaining a wholly owned subsidiary. Former divisions of Alco became semi-independent subsidiaries in 1968.

After the termination of locomotive production in 1969, the locomotive designs (but not the engine development rights) were transferred to the Montreal Locomotive Works, which continued their manufacture. The diesel engine business was sold to White Motor Corporation in 1970, which developed White Industrial Power. In 1977 White Industrial Power was sold to the British General Electric Company (GEC) which renamed the unit Alco Power. The business was subsequently sold to the Fairbanks-Morse corporation, which continues to manufacture Alco-designed engines in addition to their own design.

The heat exchanger business continued as Alco Products for a time. At some later point, some of the heat exchanger products were manufactured by the Alco Products Division of Smithco Engineering in Tulsa, Oklahoma (Smithco). In January 1983, certain assets of the Alco Products Division of Smithco, namely double-pipe and hairpin-type heat exchanger products sold under the "Alco Twin" name, mark and style, were sold in an asset sale by Smithco to Bos-Hatten, a subsidiary of Nitram Energy. Following the sale of these assets, Smithco remained in business, manufacturing other heat exchange products. In 1985, the assets acquired from Smithco were assigned by Bos-Hatten to its parent, Nitram. In 2008, Nitram was acquired by Peerless Manufacturing Co In 2015, Peerless sold its heat exchanger business to Koch Heat Transfer Co.

Operational Alco steam locomotives

Several Alco mainline locomotives are still operational, including Union Pacific 844, Union Pacific Big Boy 4014, Milwaukee Road 261, Soo Line 1003, and Florida East Coast 148.

UP Challenger 3985 ran in UP excursion service until 2010, but is now being restored by the Railroad Heritage of Midwest America museum.

Alco and MLW locomotives still work on several regional and tourist railroads across the United States and Canada, including the Delaware-Lackawanna Railroad in Scranton, Pennsylvania, the Catskill Mountain Railroad in Kingston; the Livonia, Avon and Lakeville Railroad lines based in Lakeville, New York, the Lake Whatcom Railway in Wickersham, Washington and the Middletown & Hummelstown Railroad in Middletown, Pennsylvania. The latter owns one of the last Alco switchers built, #1016, a T-6 type. This and Alco sister 151 (ex Western Maryland Railway S-6) provide daily service in Middletown. Two original Alco RS-2's that were delivered to the Nevada Northern Railway are still in operation.

Alco-Cooke 2-8-0 #18, built in 1920, survives in passenger service on the Arcade & Attica Railroad in Arcade, New York. It returned to service in May 2009 after a six-year overhaul to bring it into compliance with the FRA's new steam locomotive regulations.

Great Western 60, a 2-8-0 built in Schenectady in 1937, currently operates in passenger service on the Black River & Western Railroad in Ringoes, NJ.

Oregon Coast Scenic Railroad in Garibaldi, Oregon. This railroad owns the McCloud Railway 25. One of only four 2-6-2 locomotives built by Alco. This locomotive is operational, and is used in daily service six months of the year and weekend service an additional four months of the year. This locomotive appeared in the film "Stand by Me".