I read this to my son last night. Another book from my childhood. Unfortunately the last page at the back was ripped out (I'm blaming my brother - he always sabotaged my books :P) and we didn't realise until we got to the end. Whoops. So I had to make it up!!!
But the illustrations are gorgeous.
The book is called A Dragon in a Wagon (and other strange sights), and is a Little Golden Book. Written by Janette Rainwater, illustrations by John Martin Gilbert. Published in 1966. I love what the little boy is wearing on the cover. Shorts, long sleeved shirt (with decorative stitching), a belt and a tie (that's a bit too short). Gotta love it!!!