In 1947 the trio of Albert Mercer, K. Linwood Stauffer, and Robert Faust came together, united by a love of modern model railroading. They had come to the realization that most of the model railroad equipment being produced was of inferior quality and lacking realistic detail. Penn Line used lead dies to cast their trains instead of the more common stamping employed by Lionel and American Flyer.
In the 60's Penn expanded into the slot car market, trying to bring the realism they'd brought to trains to the new market. Thus they produced the A. J. Foyt endorsed Indy 500 racing set. Reportedly it was a great looking, under-powered, flop. by 1963 the company had declared bankruptcy.