Wm. K. Walthers, Inc. is a manufacturer and distributor of model railroad supplies and tools. History Wm. K. Walthers, Inc., was founded in Milwaukee in 1932—though it started years earlier when seven-year-old William K. (Bill) Walthers got his first taste of the hobby with a small, wind-up toy train for Christmas. He continued with the hobby and eventually had an attic layout composed primarily of his scratch-built creations. A series of articles he wrote on building train control and signaling systems led to numerous requests from other modelers that he began manufacturing them. The first ad (in the May issue of The Model Maker) offered a 24-page, 15¢ catalog that listed rail, couplers, and electrical supplies. Sales were over US$500.00 for the first year. By 1935, the catalogs were over 80 pages. Within five years, Walthers had grown so much that larger quarters were needed. Space was found on Erie Street, where everything—from milled wood parts to metal castings to decals—was made in-house. 1937 also saw a new line in HO Scale, featured in its catalog. Bill brought operating layouts to the 1939 World's Fair, which gave the hobby a big boost. Soon, though, the growing possibility of war overshadowed these successes, and supplies were becoming increasingly difficult to obtain. The next twenty years brought great change. In 1958, Bill retired, and his son Bruce took over. Just as full-size railroads were being hard-hit by new technology, so too were model railroads. Leisure time was spent in front of the TV set, not the train set. In 1960, Walthers became a full-line distributor of other manufacturers' products while continuing the expansion of the Walthers lines. By the start of the 1970s, business was booming again, and Bruce's son Phil joined the company. Acquisitions, expansions, and vertical integration Expansion and diversification continue under Phil's tenure. The establishment of the Walthers Importing Division added several international lines. The company made agreements with several European companies to become the exclusive North American distributor for many famous European brands. The manufacturing plant was modernized. Code 83 track was introduced in 1985, giving layouts more realistic proportions. In 1990, the Cornerstone Series buildings were unveiled. Combining a freight car with a related industry, the Cornerstone Series makes it possible for modelers to duplicate authentic operations, enhancing layout realism. The Train Line Deluxe Sets and locomotives debuted in 1994. These sets feature the detailing of serious