During the middle part of the 19th Century – as Newark transitioned from being an economy which was based upon farming, to becoming an economy which would be built around heavy industry – steel rails began to be used in the United States as replacements for the iron rails which were used, up until that time, for train tracks.
So, as the mid—19th Century transitioned into the latter part of the 19th Century, the trains pulling into The Ironbound in Newark rode in on train tracks made of iron. Lots of iron in Newark.
Hence…The Ironbound....