Lionel's Competitors
Whatever the reason for its initial creation, Lionel's Standard Gauge caught on at the expense of Gauges 1 and 2. No fewer than four American competitors adopted Lionel's gauge: Ives in 1921, Boucher in 1922, Dorfan in 1924, and American Flyer in 1925. While all the manufacturers' track was the same size and the trains and buildings approximately the same scale, the couplers for the most part remained incompatible, making it impossible to mix train cars from different manufacturers without modification.
The increased number of manufacturers seemed to give legitimacy to Lionel's gauge, and because the boom of the 1920s made large toy trains affordable, Standard Gauge had its heyday in the mid-1920s only to virtually disappear during the Great Depression. Ives filed for bankruptcy in 1928 and its offerings were off the market by 1932. American Flyer discontinued its Standard Gauge trains in 1932. Dorfan went out of business in 1934. Lionel discontinued Standard Gauge trains in 1940. Boucher, the last of the Standard/Wide Gauge manufacturers, folded in 1943.
O gauge, was smaller, less expensive to manufacture and it required less space to operate a layout. Thus became the most popular scale in the United States almost by default.
Read more about this topic: Wide Gauge