Canadian National 3254 was built in 1917 by the Canadian Locomotive Company for the Canadian Government Railways where it was numbered 2854. In 1918, the Canadian Government Railways combined with the Canadian Northern Railway formed the Canadian National Railways. The 3254 had considerable pulling power, could climb grades with ease, and was used to handle very heavy freight trains until the Canadian National retired it in 1958.
In November, 1961 it was sold to motel owner Willis F. Barron who moved it to Ashland, Pennsylvania and intended to run the locomotive on the Reading Company's branchline that served the town. The tracks into Ashland were pulled up before Barron's planned venture could begin operation, so he had 3254 disassembled, moved via truck and reassembled at his motel to be used as a static display. In 1982 it was sold to the Gettysburg Railroad. In the summer of 1987, the steam locomotive arrived at Steamtown after Steamtown traded Canadian Pacific 4-6-2 #1278 and cash for the 3254.
Steamtown also has a Canadian National class S-1-d Mikado, the 3377, on static display. In 2010, the 3254's tender was rusted and leaking, so a new one was rebuilt (keeping the original underframe). The new tank was then put on the 3377's tender frame, and the 3377's tank was scrapped. 3254 was taken out of service indefinitely after the 2012 season.