The second locomotive acquired by the Klondike Mines Railway Company was manufactured by Baldwin Locomotive Works of Philadelphia, Pennsylvania in 1885. The Baldwin locomotive, C/n 7597, was completed in May, it weighed fifty tons, and began its service as Columbia and Puget Sound Railroad locomotive No. 8. It was then sold to the White Pass and Yukon Route as their No. 5 later renumbered as locomotive No. 55. When KMR bought the Baldwin C/n 7597, it was valued at $ 6500.
It arrived in the Klondike in 1905 and was put to work by 1906. This steam engine became the most-used locomotive in the Klondike Mining Railway's fleet until the railway closed in 1913. KMR was held by its owners Lawther and Latta until 1925 when the Yukon Consolidated Gold Corporation absorbed the defunct KMR. YCGC had in its possession the entire KMR fleet which they employed, sold, or donated to various enterprises. KMR No. 2 was donated, along with three other locomotives to the Dawson City Museum.
At the time of the 1961 donation, KMR No. 2 was in dismal condition. Its steam stack was knocked off, and the pilot and cab were completely gone. The locomotive and its tender, the car that held the fuel, rested in Minto Park in Dawson until the locomotive shelter was built in 1987. Dawson City Museum undertook a partial restoration, retaining as much original material as possible. The locomotive now lies out of the elements in the shelter on its grounds.
Dawson City Museum, Dawson City