And if you don't mind me adding more facts to the clutter. At the 1937 NMRA convention, it was decided that 3/16 scale would become S scale as this scale contained the letter "S", not only in Three-Sixteenths, but in the ratio of One Sixty-Fourths as well.
IMHO, S scale would had caught on much sooner if there was an "Athearn-type" company making scale trains after World War II. But even then space would still be an issue, which is why HO won out at the time.
Robyn (CarolinaRail)
From what I can remember of a speech given by the late Ed Packard (Pachasa) owner of Cleveland Designs at the NASG convetion in Chicago back in the 80's, he received little support for S from either Kalmbach or Carstens publications during the postwar period. They took his advertising dollars, though.
A. C. Gilbert aside, apparently the powers of the hobby back then thought O and HO were enough or didn't want the competition, so there was be little incentive for anyone to mass produce S Scale trains. You still here rumblings about conspiracies to squash S from time to time today.
But, there were a few brave souls. These are a few I can think of: S Scale Locomotive & Supply (brass steam loco kits,) Kinsman (wood freight and passenger car kits,) MidGauge (hybrid metal/wood/cardstock freight car kits,) Nixon (Flyer conversion wheelsets) plus a few others I can't think of right now.
Conspiracy theories aside, S just won't go away!
Rusty