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Baldwin Locomotive Works: Evolution of the American Locomotive, 1907

Loss and Gain

The company, now stabilized and financially secure, encountered mixed outcomes during the American Civil War. The loss of customers in the southern states was countered by orders from the military and from the Pennsylvania Railroad in response to the boosted traffic on its routes across the northern states. The wartime economy and its accompanying inflation and increased orders allowed Baldwin to assert its financial soundness with cancellation of credit arrangements and establishment of billings on a cost plus, rather than fixed price, basis.

In the year after the war's end, September, 1866, Matthias Baldwin died, leaving the company sound in management practices and technical prowess.