Philadelphia and Reading Rail Road

The Reading Company

Company type	Public
Industry	Rail transportation
Predecessor	Philadelphia and Reading Railway Company
Founded	1924
Defunct	1976
Fate	Absorbed by Conrail
Headquarters	Philadelphia , United States
Area served	Eastern Pennsylvania and adjacent states
Products	Rail transportation services, later cinema management and real estate (as Reading Cinemas)

The Reading Company (), based in Philadelphia, was a prominent rail transportation firm operating in eastern Pennsylvania and adjacent states from 1924 until it was absorbed by Conrail in 1976.

Often referred to as the Reading Railroad or Reading Lines, it initially served primarily as a railroad holding entity before consolidating into a single railroad operation. It was the successor to the Philadelphia and Reading Railway Company, which was established in 1833.

The company enjoyed significant profitability until the decline in anthracite coal shipments from Northeastern Pennsylvania's Coal Region following World War II. The introduction of the federally funded Interstate Highway System in 1956 increased competition from trucking firms, diminishing its freight business. This market shift ultimately led to the company's bankruptcy declaration in 1971.

In 1976, Reading's rail operations were integrated into Conrail, while its remaining assets evolved into Reading Cinemas, focusing on cinema management and real estate ventures.

Philadelphia and Reading Rail Road: 1833–1893

Founded in 1833, the Philadelphia and Reading Rail Road (P&R) was one of America’s earliest railroads, created primarily to transport anthracite coal from Northeastern Pennsylvania’s Coal Region to Philadelphia. Its main route extended 93 miles from Pottsville through Reading to Philadelphia, closely following the Schuylkill River with minimal elevation changes. From its inception in 1843, P&R operated a double-track mainline.

The company quickly turned profitable by delivering anthracite coal, which had become an essential fuel source replacing wood since the early 19th century. It grew through acquisitions and leases of railroads within the Schuylkill Valley and expanded further into the southern Coal Region along the Susquehanna River. In Philadelphia, P&R developed Port Richmond, a significant privately owned tidewater terminal that enhanced export capacity and revenue streams.

In 1871, Reading established the Philadelphia and Reading Coal and Iron Company subsidiary to acquire coal mines throughout the Coal Region, achieving vertical integration by controlling both mining operations and transportation. This approach bolstered its competitive stance against rivals such as Lehigh Coal and Navigation Company and Delaware and Hudson Canal Company.

By 1871, Reading had become the world’s largest company by market capitalization at $170 million (equivalent to over $4 billion today), making it one of the earliest conglomerates. In 1879, it gained control over the North Pennsylvania Railroad, gaining access to the expanding steel industry in the Lehigh Valley.

The company extended its reach into New York City by acquiring the Delaware and Bound Brook Railroad in 1879 and building the Port Reading Branch in 1892. This development allowed direct coal shipments to industrial customers at the Port of New York and New Jersey via rail and barge.

Although its wealth was largely tied to anthracite mining and transportation through mid-century, President Archibald A. McLeod shifted focus in 1890 toward growing P&R’s rail network into a major trunk line. By 1891, McLeod sought to acquire leading railroads including Lehigh Valley Railroad, Central Railroad of New Jersey, and Boston and Maine Railroad. However, resistance from J.P. Morgan and other railroad tycoons thwarted these efforts, limiting Reading’s operations to regional service for the remainder of its existence.

1833–1873: Period of Significant Growth

The Philadelphia and Reading Rail Road received its charter on April 4, 1833, with the purpose of constructing a railway along the Schuylkill River corridor connecting Philadelphia and Reading. The segment between Reading and Norristown commenced operations on July 16, 1838, followed by the completion of the full route to Philadelphia by December 9, 1839. At its Philadelphia endpoint, the line linked with the state-operated Philadelphia and Columbia Railroad (P&C), crossing the Columbia Bridge to reach a station located at Broad and Cherry Streets in Center City.

An extension reaching from Reading to Mount Carbon was inaugurated on January 13, 1842, allowing the company to directly compete with the Schuylkill Canal. At Mount Carbon, connections were established with the Mount Carbon Railroad, which extended through Pottsville to coal mining areas and ultimately reached Williamsport. Additionally, on May 17, 1842, a freight branch line from West Falls to Port Richmond began service; Port Richmond later evolved into a significant coal shipping terminal.

In 1851, the company discontinued use of the Belmont Plane, opting instead for a bypass route; the eastern section was sold to the Reading Railroad. The Lebanon Valley Railroad was chartered in 1836 to construct a line extending westward from Reading to Harrisburg, with financial backing from Reading. Construction started in 1854 and the line became operational in 1856, presenting direct competition to the Pennsylvania Railroad (PRR).

By 1859, Reading had leased the Chester Valley Railroad branch running from Bridgeport to Downingtown. That December saw the opening of a new terminal facility in Philadelphia at Broad and Callowhill Streets. The Reading and Columbia Railroad was chartered in 1857 to establish a connection southwest from Reading to Columbia on the Susquehanna River; it opened in 1864 and was leased by Reading in 1870.

In December 1871, the company shifted its practice from naming locomotives to assigning them numbers. The Port Kennedy Railroad branch was leased in 1870 alongside the Pickering Valley Railroad stretching from Phoenixville to Byers. On December 1 of that year, Reading leased the Philadelphia, Germantown and Norristown Railroad, thereby acquiring routes along the Schuylkill River between Philadelphia and Norristown as well as a branch line leading to Chestnut Hill.

1873: Acquisition of Chester Branch

During 1873, P&R expanded its southern reach by leasing 10.2 miles of track from the Philadelphia, Wilmington and Baltimore Railroad, forming what became known as the Philadelphia & Chester Branch. This route extended from the Gray's Ferry Bridge area in West Philadelphia to Ridley Park in Delaware County, Pennsylvania, comprising 4.9 miles of double track alongside 16.7 miles of single track equipped with sidings and turnouts.

This section originally belonged to the PW&B’s inaugural 1838 line; however, in 1872 PW&B introduced a new inland alignment designed to accommodate growing communities and mitigate flooding hazards. Effective July 1, 1873, PW&B granted freight rights on this line to P&R under a lease agreement valued at $350,000 plus an annual fee of $1 for a term of 999 years, explicitly excluding passenger services. The Reading designated this route as its Philadelphia and Chester Branch; southbound trains accessed it via the jointly managed Junction Railroad before continuing onto the Chester and Delaware River Railroad.

1875–1893: Rivalry and Expansion

In 1875, four directors from the Camden and Atlantic Railroad resigned to establish the Philadelphia and Atlantic City Railway (P&AC) in 1876, under the leadership of Samuel Richards. Opting for a narrow gauge of 3 feet 6 inches to minimize expenses, they constructed the 54.67-mile route between Camden and Atlantic City within a swift 90-day period, completing it by July 1877. Despite this rapid deployment aimed at the summer tourist season, P&AC filed for bankruptcy in 1878.

By 1883, the Central Railroad of New Jersey (CNJ) and Philadelphia and Reading Railway acquired P&AC together for $1 million, subsequently renaming it the Philadelphia and Atlantic City Railroad. They converted the entire track system to standard gauge by October 1884; the Reading Railroad assumed full ownership by December 1885.

The Reading Railway leased the North Pennsylvania Railroad in 1879, extending its reach northward to Bethlehem and securing control over the Delaware and Bound Brook Railroad. This acquisition established a competitive route to New York, challenging the Pennsylvania Railroad’s dominance. At the New York terminus, Reading utilized CNJ’s Jersey City Terminal with ferry connections facilitating access to Manhattan.

Reading Terminal was inaugurated in Philadelphia in 1893, serving as both corporate headquarters and principal passenger station. That same year, Reading leased CNJ (which it had majority stock control over by 1901). In southern New Jersey, Reading merged multiple railroads into The Atlantic City Railroad in 1889. The Port Reading Railroad commenced operations in 1892, linking Bound Brook with Perth Amboy’s port facilities.

During Archibald A. McLeod’s tenure as president, Reading leased the Lehigh Valley Railroad in 1891 but terminated this lease amid receivership triggered by the Panic of 1893. The company also relinquished control over the Central New England and Boston and Maine railroads. Joseph Smith Harris took over as president during this financial crisis; he managed the establishment of the Reading Company on November 30, which absorbed P&R, thereby reinforcing corporate organization during economic instability.

1877: The Reading Railroad Incident

On July 22, 1877, following strike suppression efforts by the Philadelphia and Reading Railway during the Great Railroad Strike of 1877, acts of vandalism targeted Reading's financial properties in Reading, Pennsylvania. The Philadelphia and Reading Coal and Iron Company—a subsidiary managing local mining operations—deployed militia forces along with Coal and Iron Police to suppress unrest. When attempting to remove a coal train blockade, these forces opened fire on demonstrators, resulting in at least ten fatalities and more than forty injuries.

Philadelphia and Reading Railway: 1896–1923

Following the Panic of 1893 and unsuccessful attempts by Archibald A. McLeod to transform Reading into a major trunk line, the company underwent reorganization amid monopoly scrutiny. The Reading Company was formed as a holding corporation overseeing its rail and coal subsidiaries: Philadelphia and Reading Railway and Philadelphia and Reading Coal and Iron Company. However, regulations introduced by the 1906 Hepburn Act mandated that railroads divest their mining interests, forcing the sale of its coal subsidiary.

Although primarily engaged in coal transportation and mining, P&R diversified extensively along its routes, supporting an average of nearly five industries per mile at its peak operation. It played a pivotal role within the Alphabet Route, linking Boston and New York City with Chicago through collaborations with Lehigh Valley Railroad and Central Railroad of New Jersey. This alliance enabled efficient freight and passenger exchanges via shared locomotive power among partner railroads.

While it never reclaimed its prominence from the 1870s, Reading remained financially stable and technologically advanced through World War I. The company invested significantly in infrastructure upgrades rarely seen among smaller railroads—such as adding triple or quadruple tracks on main lines, enhancing signaling systems, improving track conditions, expanding capacity, and modernizing station amenities.

Notable infrastructure projects included new cut-offs and bypasses comparable to those constructed by larger competitors like Pennsylvania Railroad. The 1902 Reading belt line circumvented downtown congestion via a 7.2-mile route on the city's western side. In 1903, a new Schuylkill River bridge linked key lines to improve passenger services and freight detours.

Between 1907 and 1914, upgrades transformed the Ninth Street Branch leading into Reading Terminal from a double-track street-level line into an elevated quadruple-track system that increased both capacity and safety. In 1901, control over Central Railroad of New Jersey was secured by Reading, facilitating uninterrupted travel from Philadelphia’s Reading Terminal to Jersey City’s Communipaw Terminal. The Baltimore and Ohio Railroad gained access to New York markets through control of the Reading in 1903.

The completion of the New York Short Line in 1906 provided an essential bypass for freight trains bound for New York as well as B&O's Royal Blue passenger service, further strengthening Reading’s strategic market position.

Reading Shops

Founded in 1850 in Reading, Pennsylvania, the Reading Shops initially consisted of two roundhouses and a machine shop. Between 1902 and 1906, these facilities underwent a major expansion along North 6th Street to accommodate a growing fleet of locomotives and rolling stock. Constructed from brick, these shops became some of the largest railroad maintenance complexes in the United States, uniquely equipped to manufacture locomotives, freight cars, and passenger coaches, as well as perform extensive repairs. The locomotive division employed approximately 2,000 workers across 70 erecting pits, while the car department added around 1,000 more employees. Additional car repair shops were located at Wayne Junction (Philadelphia), St. Clair/Pottsville, Tamaqua, Newberry Junction (Williamsport), and Rutherford near Harrisburg. Most of these former Reading shop buildings have since been repurposed for non-railroad uses.

To manage increasing traffic demands, Reading introduced larger steam locomotives such as the colossal N1 class 2-8-8-2 Mallet and the M1 class 2-8-2 freight engines—only one M1 was constructed by Reading itself, with Baldwin Locomotive Works building the remainder. The K-1 2-10-2 class served as principal freight haulers; some were converted from Mallets at Reading, while others were Baldwin-built. Passenger trains primarily relied on the G1 class 4-6-2. These locomotive classes represented a pivotal evolution in Reading’s motive power strategy.

The M1 locomotives were distinguished as the first on Reading’s roster to feature trailing trucks and cabs positioned behind the Wootten firebox. Steam engines marked as "lessor" denoted leased units. Notably, the G1s were the initial passenger locomotives equipped with three-coupled driving wheels.

Between 1945 and 1947, Reading allocated $6 million to modernize 30 class I-10 2-8-0 engines into T1 class 4-8-4 locomotives at the 6th Street shop. This modernization sought to alleviate shortages of diesel power—primarily EMD FT units—that were preferred but in limited supply. Despite mechanical challenges and a brief operational lifespan, this initiative helped maintain employment levels. Four T1 locomotives remain today; among them, No. 2102 continues to operate in tourist service with the Reading, Blue Mountain and Northern Railroad. Additionally, Reading constructed or acquired various smaller 4-4-0s, 2-8-0s, and switcher locomotives for its roster.

Passenger operations

The Reading Company operated several prominent named passenger trains, most famously the streamlined Crusader, which linked Philadelphia with Jersey City, New Jersey. Other significant routes included the Harrisburg Special (Jersey City–Harrisburg, Pennsylvania), King Coal (Philadelphia–Shamokin, Pennsylvania), North Penn (Philadelphia–Bethlehem, Pennsylvania), and Queen of the Valley (Jersey City–Harrisburg). The company also collaborated on The Interstate Express, providing service between Philadelphia and Syracuse, New York alongside other railroads.

Through passenger car connections were available via a partnership with the Lehigh Valley Railroad at Bethlehem, Pennsylvania. Until 1963, Reading held contracts with the U.S. Post Office to transport and sort mail aboard passenger trains; these contracts were valued at $2.1 million at that time before being discontinued. Following this change, the company adopted Budd RDC self-propelled railcars to improve cost efficiency.

A remarkable speed record was set on July 20, 1904, when train number 25 completed its run from Kaighn's Point in Camden, New Jersey to Atlantic City—a distance of 55.5 miles—in just 43 minutes. This journey averaged a speed of 77.4 mph with brief segments reportedly reaching up to 115 mph.

Operating out of Reading Terminal in Philadelphia, Reading managed an extensive commuter rail system. By the late 1920s, most suburban lines had been electrified, including the Ninth Street Branch, New Hope Branch (extended to Warminster by 1974), Bethlehem Branch (to Lansdale), Doylestown Branch, and New York Branch (to West Trenton). To support this electrification effort, Reading procured 150 electric multiple unit cars from Bethlehem Steel, supplemented by converted coach trailers. Electric service officially began on July 26, 1931.

Reading Company: 1924–1976

Following World War I and the end of government oversight, the Reading Company reorganized its corporate framework. By 1924, the Philadelphia & Reading Railroad (P&R) discontinued its operations, with the Reading Company taking over as the direct operating railroad. This move streamlined the corporate setup, centralizing activities under the holding company.

The postwar era represented a high point for the Reading Company's operations, with annual freight volumes reaching approximately 15 million tons of anthracite coal, 25 million tons of bituminous coal, and 30 million tons of industrial freight. Although attempts were made to broaden its business scope, coal revenue remained predominant, reflecting Pennsylvania’s peak anthracite output of 99.7 million tons in 1917.

Revenue Freight Ton-Miles (Millions)

	Reading	Cornwall	B&S
1925	6,775	9	0.8
1933	3,943	3	(incl in RDG)
1944	9,303	13
1960	5,685	8
1970	4,329	(incl in RDG)

Revenue Passenger-Miles (Millions)

	Reading	Cornwall	B&S
1925	418	0.6	0.6
1933	150	0.01	(incl in RDG)
1944	541	0
1960	173	0
1970	195	(incl in RDG)

The revenue statistics cover subsidiaries operating under Reading by the late 1920s but exclude Atlantic City Railroad and PRSL. This timeframe underscores the company's dependence on coal freight and passenger transport as fundamental elements of its revenue base and market presence.

Commuter lines

During the 1920s, Reading managed an extensive commuter rail system radiating from the Ninth Street Branch, primarily utilizing small locomotives such as the 4-4-0s, 4-4-2s, and 4-6-0 camelback types.

Bankruptcy protection

In response to declining coal freight income, increasing competition from trucking industries, and stringent government regulations that capped fares and imposed heavy taxes, the Reading Company sought bankruptcy protection in 1971. These challenges compelled the company to continue operating loss-making lines as a common carrier, adversely affecting its financial stability.

Electrification

Focused on Philadelphia’s Reading Terminal hub, the company electrified several crucial suburban commuter routes during the Great Depression to improve service efficiency and maintain competitiveness. The electrified corridors included:

• Norristown Line
• Chestnut Hill
• Lansdale/Doylestown
• Hatboro (later extended to Warminster in 1974)
• West Trenton

Initially, the Fox Chase/Newtown branch was not electrified; however, public funding enabled electrification up to Fox Chase by 1966. Due to insufficient subsidies, plans to extend electrification to Newtown were abandoned, leading to cessation of passenger service between Fox Chase and Newtown in 1983 under SEPTA administration.

Financial difficulties continued as Reading was obligated to make debt payments to the bankrupt Penn Central Railroad without reciprocal arrangements, further straining its fiscal condition.

Post-railroad era: 1976 to present

On April 1, 1976, the Reading Company transferred its railroad operations to the newly established Consolidated Railroad Corporation (Conrail), while retaining ownership of 650 real estate holdings, several coal-related properties, and 52 unused rights-of-way. By the time Conrail was divided in 1999, the majority of former Reading rail lines had become part of Norfolk Southern Railway. Following its emergence from bankruptcy in 1980, the company had divested around 350 parcels of real estate.

During the late 1980s, James Cotter, a Los Angeles-based attorney and businessman, acquired control through his investment vehicle, Craig Corporation. He utilized these retained assets to fund cinema chains operating in Puerto Rico, Australia, and New Zealand. In 1991, the company sold one of its remaining railroad-related properties, the Reading Terminal Headhouse. Cotter restructured the enterprise under the name Reading Entertainment in 1996. Subsequently, on December 31, 2001, Reading Entertainment merged with Craig Corporation to form Citadel Holding Corporation, another entity owned by Cotter.

The resulting company was rebranded as Reading International Inc., issuing two types of stock: Non-Voting Class A shares (NASDAQ: RDI) and Voting Class B shares (NASDAQ: RDIB).

Preserved steam locomotives

Nine steam locomotives that once operated under the company have been preserved:

• 0-4-0 1 Rocket – Constructed in London in 1838; recognized as the oldest surviving locomotive; exhibited at the Railroad Museum of Pennsylvania located in Strasburg.
• 4-4-0 3 Shamokin – Built in 1842; the sole remaining Reading Company 4-4-0; displayed at Philadelphia’s Franklin Institute.
• 2-2-2 tank Black Diamond – Manufactured by Baldwin Locomotive Works in 1889; the only known surviving U.S. inspection locomotive; currently on loan to the National Museum of Transportation in St. Louis.
• 0-4-0 camelback Reading 1187 – Produced by Baldwin in 1903; last extant Reading camelback locomotive; preserved at the Age of Steam Roundhouse in Sugarcreek, Ohio.
• 0-6-0 tank Reading 1251 – Built internally in 1918; unique as Reading’s only post-WWI tank engine; housed at the Railroad Museum of Pennsylvania.
• 4-8-4 Reading 2100 – Prototype T-1 class engine constructed by Baldwin in 1923 and rebuilt in 1945; currently undergoing restoration at a former Baltimore and Ohio roundhouse in Cleveland.
• 4-8-4 Reading 2101 – Also Baldwin-built in 1923 and rebuilt in 1945; displayed at Baltimore’s B&O Railroad Museum.
• 4-8-4 Reading 2102 – Similar Baldwin-built and rebuilt model; operational with the Reading Blue Mountain and Northern Railroad based in Port Clinton.
• 4-8-4 Reading 2124 – Constructed in 1924 and rebuilt in 1947; preserved at Scranton’s Steamtown National Historic Site.

These locomotives stand as significant historical artifacts that embody the company’s industrial legacy and its prominent role within railroad history.

Prominent Named Passenger Services

Among the notable named passenger trains operating on the Reading line were:

• Crusader: running from Jersey City to Philadelphia (Reading Terminal) via West Trenton
• King Coal: connecting Philadelphia to Shamokin through Reading Franklin Street Terminal and Pottsville on the Main Line
• Main Line: providing service to Pottsville
• North Penn: linking Philadelphia with Bethlehem
• Queen of the Valley (eastbound known as Harrisburger): traveling from Jersey City to Harrisburg (Harrisburg Central Station)
• Scranton Flyer: servicing routes to Scranton
• Wall Street: operating between Philadelphia and Jersey City

Partnerships with other rail companies included:

• Interstate Express: bound for Syracuse in collaboration with Lackawanna Railroad and Central Railroad of New Jersey
• Maple Leaf: route to Toronto via Buffalo, jointly operated with Lehigh Valley Railroad

Heritage Locomotives

To celebrate Norfolk Southern’s 30th anniversary in 2012, twenty locomotives were adorned with paint schemes from predecessor railroads, including NS #1067, an EMD SD70ACe showcasing Reading’s Bee Line Service colors, which received a fresh update in 2023.

In 2024, SEPTA introduced two Silverliner IV heritage units (#280 and #293), restored to their original 1974 Reading Company livery, commemorating the 50th anniversary of these cars.

Leadership

The Reading Company was guided by a series of presidents who played key roles in its development and strategic direction:

• Elihu Chauncey – 1834–1842
• William F. Emlen – 1842–1843
• John Cryder – 1843–1844
• John Tucker – 1844–1856
• Robert D. Cullen – 1856–1860
• Asa Whitney – 1860–1861
• Charles Eastwick Smith – 1861–1869
• Franklin B. Gowen – 1869–1881
• Frank S. Bond – 1881–1882
• George DeBenneville Keim – 1882–1887
• Austin Corbin – 1887–1890
• Archibald A. McLeod – 1890–1893
• Joseph Smith Harris – 1893–1901
• George Frederick Baer – 1901–1914
• Theodore Voorhees – 1914–1916
• Agnew Dice – 1916–1932
• Charles H. Ewing – 1932–1935
• Edward W. Scheer – 1935–1944
• Revelle W. Brown – 1944–1952
• Joseph A. Fisher – 1952–1960
• E. Paul Gangewere – 1960–1964
• Charles E. Bertrand – 1964–1976

Cultural Significance

The Reading Railroad holds a place in popular culture as one of the quartet of railroads depicted in the original Monopoly board game, highlighting its considerable influence within the transportation industry.

See also

• Great Railroad Strike of 1877
• Schuylkill Canal

External links

• Reading Company Technical and Historical Society
• North East Rails (covering Reading to Pottsville, Pennsylvania and the Anthracite Coal Region of Schuylkill County, Pennsylvania)
• Schuylkill Haven History
• Reading Company photographic archive (1873–1945) at Hagley Museum and Library
• Reading Company photographs (circa 1984–1960) at Hagley Museum and Library
• PRR Chronology
• SEC filings for Reading Entertainment Inc.
• SEC filings for Reading International Inc.
• Employment and real estate records of the Reading Company