[1] Design work on the 241, began in 1940, initially led by Ralph Miller, who was shortly thereafter replaced by Paul Vaughan.
His recommendation was for a high speed, 9" X 10.5" V-type diesel engine operating at a maximum of 1,000 rpm with a 45-degree angle between the two cylinder banks.
Prior to the outbreak of the war the Gulf Mobile & Ohio Railroad ordered 80 diesel freight locomotives from Alco when and if there was a successful design.
[4] On November 10, 1943 at the locomotive builders meeting with the War Production Board Alco again requested to build road diesels.
On December 10, 1943 Alco received approval to build one experimental three unit road freight locomotive in the fourth quarter of 1944.
[6] Later that year, ALCO management decided to abandon their previous plan to use the 241 in production locomotives, instead choosing to use the new 244 design as soon as possible.
[6] Three 12-cylinder 241 engines were placed in demonstrator road locomotives in 1945, which late in the year underwent testing on the Delaware and Hudson Railroad.
[8] The locomotives subsequently returned to ALCO property, where the engines underwent teardown and inspection, while the carbodies were scrapped.