Hello all December 1937 Lionel introduces the 700E Hudson ..for $75.00 and Mantua introduces it's new HO gauge line with a Reading Consolidation , two gondolas, caboose and loop of track for $59.50 . Mantua and Varney would go head to head promoting the new HO gauge ..to be joined in the later part of 1938 with Gilbert ..the force of the 3 would push HO ahead of O gauge as the preferred gauge in the 1941 Model Railroader pole.
Here is a link to see a 1938 -40 Mantua Consolidation in action .
https://www.youtube.com/watch?v=O8ShOisaVNw
Cheers Carey