L. G. Cannon, President of the Rensselaer and Saratoga Railroad Company, writes, "Your engines will, in performance and cost of repairs, bear comparison with any other engine made in this or any other country."

Some of Mr. Baldwin's engines on the State Road, in 1837, cost, for repairs, only from one and two-tenths to one and six-tenths cents per mile. It is noted that the engine "West Chester," on the same road, weighing twenty thousand seven hundred and thirty-five pounds (ten thousand four hundred and seventy-five on drivers), drew fifty-one cars (four-wheeled), weighing two hundred and eighty-nine net tons, over the road, some of the track being of wood covered with strap-rail.

The financial difficulties of 1836 and 1837, which brought ruin upon so many, did not leave Mr. Baldwin unscathed. His embarrassments became so great that he was unable to proceed, and was forced to call his creditors together for a settlement. After offering to surrender all his property, his shop, tools, house, and everything, if they so desired,—all of which would realize only about twenty-five per cent. of their claims,—he proposed to them that they should permit him to go on with the business, and in three years he would pay the full amount of all claims, principal and interest. This was finally acceded to, and the promise was in effect fulfilled, although not without an extension of two years beyond the time originally proposed.

In May, 1837, the number of hands employed was three hundred, but this number was reducing weekly, owing to the falling off in the demand for engines.

These financial troubles had their effect on the demand for locomotives, as will be seen in the decrease in the number built in 1838, 1839, and 1840; and this result was furthered by the establishment of several other locomotive works and the introduction of other patterns of engines.

The changes and improvements in details made during these years may be summed up as follows:

The subject of burning coal had engaged much attention. In October, 1836, Mr. Baldwin secured a patent for a grate or fireplace which could be detached from the engine at pleasure, and a new one with a fresh coal fire substituted. The intention was to have the grate with freshly ignited coal all ready for the engine on its arrival at a station, and placed between the rails over suitable levers, by which it could be attached quickly to the fire-box. It is needless to say that this was never practiced. In January, 1838, however, Mr. Baldwin was experimenting with the consumption of coal on the Germantown road, and in July of the same year the records show that he was making a locomotive to burn coal, part of the arrangement being to blow the fire with a fan.

Up to 1838, Mr. Baldwin had made both driving and truck wheels with wrought tires, but during that year chilled wheels for engine and tender trucks were adopted. His tires were furnished by Messrs. S. Vail & Son, Morristown, N. J., who made the only tires then obtainable in America. They were very thin, being only one inch to one and a half inches thick; and Mr. Baldwin, in importing some tires from England at that time, insisted on their being made double the ordinary thickness. The manufacturers at first objected and ridiculed the idea, the practice being to use two tires when extra thickness was wanted, but finally they consented to meet his requirements.

All his engines thus far had the single eccentric for each valve, but at about this period double eccentrics were adopted, each terminating in a straight hook, and reversed by hand-levers.

At this early period, Mr. Baldwin had begun to feel the necessity of making all like parts of locomotives of the same class in such manner as to be absolutely interchangeable. Steps were taken in this direction, but it was not until many years afterward that the system of standard gauges was perfected, which has since grown to be a distinguishing feature in the establishment.