1860-1870
The Civil War at first appeared disastrous for Baldwin. According to John K. Brown in The Baldwin Locomotive Works, 1831-1915: A Study in American Industrial Practice, at the start of the conflict Baldwin had a great dependence on Southern railways as its primary market. In 1860, nearly 80 percent of Baldwin's output went to carriers in states that would soon secede from the Union. As a result, Baldwin's production in 1861 fell more than 50 percent compared to the previous year. However, the loss in Southern sales was counterbalanced by purchases by the U.S. Military Railroads and the Pennsylvania Railroad, which saw its traffic soar, as Baldwin produced more than 100 engines for carrier during the 1861–1865 war.
By the time Matthias Baldwin died in 1866, his company was vying with Rogers Locomotive and Machine Works for the top spot among locomotive producers. By 1870 Baldwin had taken the lead and a decade later, it was producing 2½ times as many engines as its nearest competitor, according to the U.S. Manufacturing Census.
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