The locomotive was originally owned by the Forests Commission of Victoria. In 1926 the Commission constructed a 2’ 6" narrow gauge tramway from a loop siding and transfer point, known as Collins Siding, located one mile from Erica on the VR Moe Walhalla narrow gauge line. The line ran for 6.7 miles to Tyers Junction.

Early motive power on the line, apart from a couple of tractors which were not entirely suitable, was firstly a Harman geared steam locomotive built in North Melbourne. This was ordered and delivered in 1927. On 19 January 1928, a T.A.C.L. tractor B/NO 55 powered by a Fordson petrol engine via a chain and gear drive was delivered by the Tractor Appliance Co. Ltd.

This tractor is now outside the E.T.R.B.’s Emerald carshops undergoing restoration, being one of two T.A.C.L. units purchased. Unfortunately the locomotive fleet was unreliable due to breakdowns of the steam locomotive and lack of tractor power.

In an attempt to improve the situation the E.C.V. ordered via George Trowbridge and Co. from the Climax Manufacturing Co., U.S.A., one only 2 ‘6" gauge 25-ton Climax B Class geared locomotive at a purchase cost of £2,555/9/8, which, with import duty of £1,456/6/6, made a total price of £4,011/16/2 ($8,023.61 in present-day language). The order, No. 66482, was placed on 24th April 1928. A letter on the F.C.V. file from G. F. Trowbridge, New York indicates that the Commission was originally interested in a "Climax, Class A, upright type steel frame eight drivers 22 tons" at $US11,100 including insurance and freight but excluding duty and handling charges, but Trowbridge would also obtain a quotation for a Climax B class 25 ton.

Two unique features for Australia were the bell on top of the boiler and the hose used for filling the tank from creeks; also unusual was the Radley and Hunter smokestack with its internal spark arresting apparatus.

1694 entered service on 7th September,1928 after hauling six trucks of sawn timber from Tyers Junction to Collins Siding. Over the next six years there were four instances of broken axles in the bogies and one of a broken crankshaft, with repairs being undertaken by the S.E.C. at its Yallourn Workshops. One of these fractures caused the locomotive to topple over. The F.C.V. suspected fatigue fractures commencing at the keyways on the axles. In an attempt to solve the problem of breaking axles and prevent another overturning of the locomotive, the boiler pressure was reduced from 200 psi to 160 psi in April, 1934, and new axles were made from higher quality alloy steel.

After this there were three instances of broken axles, in 1936 and 1938. The smokestack had been replaced in 1932, new tyres fitted in 1934, repair to boiler plates in 1937, and the boiler was retubed in 1940, and again in 1943. 22nd February, 1944, saw the water tank sent via road to Vickery Engineering, Richmond, where a new tank was completed on 1st March for £20/-/- and sent back to Erica on 3rd March, 1944. A new funnel was sent to Tyers Junction on 4th May, and repairs to the boiler front tube plate took place on 12th December, 1944. New gears were cut at Vickers Ruwolt, Richmond.

The line closed in July, 1949 with 1694 remaining at Tyers Junction until 28th November, 1950, when it was moved to Collins Siding and then on 14th December to Erica State Sawmill via the V.R. narrow gauge line. (A more detailed history of this period is available in the reference material.)

The Museum Branch spent many hours painting and cleaning, replacing a pilot beam, and generally bringing everything up to a standard suitable for display in the Museum. There 1694 stayed for 20 years, the object of interested fans and wishful thoughts of "wouldn’t it be great to see it going".