This locomotive, named the "Governor Stanford", might be the most historically important one in the museum, as it was the first locomotive of the Central Pacific railroad; one of the two railroads which built the first Transcontinental Railroad route. But, it was also the most common locomotive "type" used in the United States in the 19th Century. So common, in fact, that this particular "type" eventually became called "The American Type".
The concept of assigning names to "types" didn't come about until 1872, so when this locomotive was being used - during the building of the Transcontinental Railroad route - it was just called a "standard" or "eight wheeler" locomotive. But, you might ask: what makes a "type"? In the North America, the "type" is the arrangement of the wheels.
Notice that this locomotive has four small wheels (two axles) in the front, called the pilot wheels. Following those, are four larger wheels (two axles). These large wheels are called the "driving wheels" (or "drivers") because they are linked to the cylinders with metal bars - called the value gear - which "drives the locomotive forward". So, the arraignment of this locomotive is called a 4-4-0, and names can then be assigned based on the wheel arrangement. But, you might ask: where did that zero come from? By the time this numbering system was invented it was common for locomotives to have two or four small wheels after the drivers, and those that didn't were designated as having "0" (zero). As this entire system came about long after many different wheel arraignments were already in existence, many "type" names were assigned after-the-fact; the "American" being one of them. When a new wheel arraignment was created, the railroad which designed or purchased the first locomotive got the honor of naming "the type".
The "American" type was common because it was a decent general-purpose locomotive. But, even more important, it didn't derail on marginal track. This was because it had the four wheel lead truck and a three-point suspension system. So, it went around curves and over uneven track without difficulty. However, as freight cars got heavier this type of locomotive was eventually used only for passenger service, and because of its stability at high speeds "The American Type" lasted in service until the early 20th Century.
How do these thing work?
Watch this short animation. Or, this one. All steam locomotives, regardless of the era or the size, worked pretty much the same way: fuel (wood, coal, oil) makes heat, which boils water under pressure, which turns to steam, which enters the cylinders, which pushes the locomotive, which pulls the train (which is why they exist). But, like all technology, there were many incremental improvements over time. The basic goal of the locomotive designer was to maximize efficiency while minimizing operating and maintenance costs; and the best locomotives found a winning balance between the two.
How fast could this thing go?
It depended on how much it was pulling (the weight of the train) and what kind of grade (incline) it was climbing. In normal service - in the summer - these types of locomotives could pull about fifteen 20 ton freight cars at about 30 mph on level track. However, going upgrade to Donner Summit, one locomotive of this type would be lucky to pull five 20 ton freight cars; which is why they'd commonly use two or three engines on a train.
Also note that, railroads in the US were private companies (and still are). As such, when the railroads lines were first built, it was done at the lowest possible cost with the hope that by selling transportation the company could stay in business and the track eventually improved. It was a highly speculative endeavor. As such, the theoretical speed of a locomotive was much higher than the ability of the track to initially allow it. And, this type of locomotive's three-point suspension system allowed the early - marginally built - railroad companies to "stay on track".
Did these things explode?
They sure did. However, it wasn't very common after government regulations were put in place in the early 20th Century.