The Baden IV e engines were created primarily for express and passenger train duties on the steep lines of the Schwarzwaldbahn.

In France, the Compagnie des chemins de fer du Midi, purchased a copy of this engine for its difficult Béziers-Neussargues line.

However they were replaced in the express service role as early as 1903 by the II d and IV f. In 1925, the Deutsche Reichsbahn incorporated the remaining 35 examples into DRG Class 38.70; they were given – in groupings based on their delivery batches – the running numbers 38 7001 – 38 7007, 38 7021 – 38 7025, 38 7031 – 38 7034, 38 7041 – 38 7046 and 38 7061 – 38 7073.

The engine had a riveted interior plate frame and the coupled wheels had springs under the axle boxes, that were not linked by compensating levers.

An innovative feature, for Germany, of the IV e was the use of a four-cylinder, de Glehn compound, that was employed for the first time on a locomotive with three coupled axles.