The development of the Guide-O-Matic system meets the relatively new concept of using driverless trains in the field of material handling and warehousing. Basically, Guide-O-Matic equipment is either a magnetic type following wiring in the floor or an optical type following a taped line on the floor. The magnetic system provides high reliability and is more easily adapted to steering, course switching, stopping, and programming -- technical aspects of these phases are discussed. Multiple tractor systems can also be used by setting up an automatic traffic control system. Safety features and future applications of the automatic driverless trains are highlighted.