This 22" gauge coal burning American type (4-4-0) locomotive was built in 1905 by the Cagney Locomotive Works in New York City, NY. It weighs 3,860 lbs, has 10" drivers and 3¼" x 5" cylinders. It operated at a boiler pressure of 150 psi and had a top speed of 10 mph.
The Cagney Company started out in Niagara Falls in the 1880s and then moved to New York City, where it built many of these “park locomotives” into the 1930s. The engines worked in amusement arcades and public parks where they could haul passenger trains of up to ten cars depending on the railroad grade.
According to the museum's information sign, the first Class E was introduced in 1904 at the St. Louis World's Fair and was modelled on New York Central's #999 (you can see #999 on the Chicago Museum of Science and Industry page of this website). The company closed in 1948 after having built about 1,300 engines.
#2 was built for George Cornelius Tilyou's amusement park known as Steeplechase Park on Coney Island (the name derived from a mechanical horse race course at the park).