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Philadelphia and Reading Railroad

From Alfawiki
Reading Company
Company typeRailroad holding company
IndustryRail transport
Founded1924
Defunct1976
FateMerged into Conrail; non-rail divisions became Reading International
Headquarters
Philadelphia
,
United States
Area served
Eastern Pennsylvania and adjoining states
ProductsRail transportation, anthracite coal shipment

Reading Company

Based in Philadelphia, the Reading Company () was a prominent rail transportation firm that operated throughout eastern Pennsylvania and adjoining states from 1924 until its integration into Conrail in 1976. Commonly referred to as the Reading Railroad and marketed as Reading Lines, it functioned mainly as a railroad holding company before eventually merging into a unified railroad system.

Tracing its roots back to the Philadelphia and Reading Railway Company established in 1833, the enterprise was instrumental in both passenger and freight services, particularly excelling in the shipment of anthracite coal from Northeastern Pennsylvania’s Coal Region. This focus on coal transport generated significant income and influence until demand waned following World War II.

The company's financial health declined notably after the 1956 launch of the federally supported Interstate Highway System, which allowed trucking firms to seize freight business by offering more adaptable short-haul routes. This development eroded Reading’s market position, culminating in bankruptcy by 1971.

In 1976, Reading's railroad operations were consolidated into Conrail, while its non-rail divisions transformed into what is now known as Reading International, concentrating on real estate and entertainment ventures.

Philadelphia and Reading Rail Road: 1833–1893

One of the earliest railroads in the United States, the Philadelphia and Reading Rail Road (P&R) was originally constructed to move anthracite coal from Northeastern Pennsylvania’s Coal Region to Philadelphia. Its main line extended 93 miles from Pottsville through Reading to Philadelphia, following the Schuylkill River with minimal grading challenges. Since its establishment in 1843, this route featured double tracks.

P&R rapidly achieved profitability by supplying anthracite coal—a critical fuel source that replaced wood—thereby challenging the dominance of the Lehigh Coal & Navigation Company. The company expanded its reach by acquiring railroads within the Schuylkill Valley and extending its lines into the Coal Region along the Susquehanna River.

In Philadelphia, P&R developed Port Richmond, a significant privately owned tidewater terminal that enhanced export capacity and bolstered financial results. In 1871, it created the Philadelphia and Reading Coal and Iron Company to purchase coal mines, establishing vertical integration that controlled both extraction and transportation of anthracite coal. This approach secured competitive advantages over rivals such as Lehigh Coal and Navigation Company and Delaware and Hudson Canal Company.

By 1871, Reading had become the largest company globally by market capitalization at $170 million (adjusted for today’s value), arguably representing one of the earliest conglomerates. In 1879, it acquired the North Pennsylvania Railroad to gain access to the Lehigh Valley steel industry.

The company expanded into New York markets through control of the Delaware and Bound Brook Railroad in 1879 and through construction of the Port Reading Branch in 1892. These developments enabled direct coal delivery to industries in New Jersey and New York City via rail and barge—simplifying logistics compared to shipping from Port Richmond around Cape May.

Initially prioritizing anthracite mining and transportation over rail network growth, Reading shifted strategy under President Archibald A. McLeod in 1890 toward becoming a trunk railroad by acquiring neighboring lines. By 1891, it controlled the Lehigh Valley Railroad, Central Railroad of New Jersey, and Boston and Maine Railroad. However, this expansion was curtailed by J. P. Morgan and other railroad magnates seeking to limit competition within the Northeast Corridor, restricting Reading’s operations to a regional scope thereafter.

1833–1873: Period of Broadening Operations

The Philadelphia and Reading Rail Road was officially chartered on April 4, 1833, with the objective of constructing a rail line following the Schuylkill River corridor between Philadelphia and Reading. The entire route became operational on December 9, 1839, terminating in Philadelphia at the state-owned Philadelphia and Columbia Railroad (P&C). This connection was facilitated via the Columbia Bridge and City Railroad, leading to a depot located at Broad and Cherry Streets in central Philadelphia.

An extension reaching from Reading to Mount Carbon commenced service on January 13, 1842, allowing the railroad to compete directly with the Schuylkill Canal. At Mount Carbon, it linked with the Mount Carbon Railroad, which served nearby coal mines and was later extended toward Williamsport. Additionally, a freight branch line to Port Richmond on the Delaware River began operations on May 17, 1842, establishing a significant coal shipping terminal.

On January 1, 1851, the company took over the eastern section of the former Belmont Plane route after it was abandoned by the P&C. The Lebanon Valley Railroad, chartered in 1836 to connect Reading westward to Harrisburg, was financially supported and eventually integrated into the Reading system. Opened in 1856, this line provided a direct Philadelphia-to-Harrisburg connection that competed with the Pennsylvania Railroad, reinforcing Reading’s dominance in regional freight transportation.

In 1859, the Reading leased the Chester Valley Railroad branch extending from Bridgeport to Downingtown. That same year saw the inauguration of a new terminal in Philadelphia at Broad and Callowhill Streets. The Reading and Columbia Railroad, chartered in 1857 and opened in 1864 to connect Reading southwestward to Columbia on the Susquehanna River, was leased by Reading in 1870.

By December 1871, locomotive identification shifted from names to numerical designations. In 1870, several short lines were leased including the Port Kennedy Railroad for quarry access and the Pickering Valley Railroad running from Phoenixville to Byers. On December 1, 1870, the company leased the Philadelphia, Germantown and Norristown Railroad, acquiring routes along the Schuylkill River corridor from Philadelphia to Norristown as well as its Chestnut Hill branch.

This era was characterized by considerable business expansion through strategic acquisitions and network growth that strengthened Reading’s market share in coal transport and regional freight operations.

1873: Development of the Chester Branch

In 1873, P&R extended its southern reach by leasing a 10.2-mile stretch of track from the Philadelphia, Wilmington and Baltimore Railroad, establishing what became known as the Philadelphia & Chester Branch running from West Philadelphia to Ridley Park in Delaware County. This section featured 4.9 miles of double track alongside 16.7 miles of single track with sidings. The line originated as part of PW&B’s initial 1838 route; however, a new inland alignment had been opened in 1872 to serve expanding communities and mitigate flood risks. On July 1, 1873, PW&B granted freight operating rights to P&R under a lease agreement valued at $350,000 plus an annual payment of $1 for a term of 999 years; passenger services were restricted under this arrangement. The Reading designated this segment as its Philadelphia and Chester Branch; southbound trains accessed it via the jointly managed Junction Railroad before continuing on to the Chester and Delaware River Railroad.

1875–1893: Rivalry and Expansion

In 1876, Samuel Richards and associates established the Philadelphia and Atlantic City Railway (P&AC) to create an alternative rail route from Camden to Atlantic City, opting for a narrow gauge to minimize expenses. The construction was completed rapidly within 90 days by July 7, 1877, but the line declared bankruptcy by July 1878. In 1883, the Central Railroad of New Jersey (CNJ) and Philadelphia and Reading Railway jointly purchased the line for $1 million, renaming it the Philadelphia and Atlantic City Railroad and converting its tracks to standard gauge by October 1884. The Reading Railroad gained full ownership in December 1885.

In 1879, the Reading leased the North Pennsylvania Railroad, securing a rail connection from Philadelphia to Bethlehem along with access to New York City through the Delaware and Bound Brook Railroad—directly competing with the Pennsylvania Railroad. For New York access, it utilized CNJ’s Jersey City Terminal, which offered ferry links to Manhattan.

The Reading Terminal in Philadelphia opened its doors in 1893. That same year, Reading leased CNJ and eventually acquired a majority stake by 1901. Earlier, in 1889, the Philadelphia and Reading Railway consolidated several southern New Jersey railroads into The Atlantic City Railroad. Additionally, the Port Reading Railroad was chartered in 1890 and commenced operations in 1892, linking Bound Brook to Port Reading near Perth Amboy.

During Archibald A. McLeod’s presidency, the Lehigh Valley Railroad was leased in December 1891; however, this lease terminated in August 1893 when Reading entered receivership amid the Panic of 1893. Concurrently, control over the Central New England Railway and Boston and Maine Railroad was lost. Joseph Smith Harris assumed leadership during this turbulent period and supervised the establishment of the Reading Company as well as absorbing P&R on November 30. In that year, Reading constructed its landmark headquarters at Philadelphia’s Reading Terminal to centralize operations for trains bound for Philadelphia.

1877: The Reading Railroad Massacre

On July 22, 1877, following the suppression of strikes by the Philadelphia and Reading Railway during the Great Railroad Strikes of that year, violent unrest targeted Reading’s financial holdings within Pennsylvania. The Philadelphia and Reading Coal and Iron Company—a subsidiary owning mining properties—deployed militia forces along with Coal and Iron Police to suppress demonstrations. When attempting to clear a coal train obstructed by protesters, they opened fire on rioters, resulting in at least ten fatalities and more than forty injuries.

Philadelphia and Reading Railway: 1896–1923

In the aftermath of the Panic of 1893 and unsuccessful expansion attempts under Archibald A. McLeod to elevate Reading as a dominant trunk line, the company underwent reorganization amid antitrust concerns. The Reading Company was created as a holding corporation overseeing its railroad and coal subsidiaries: Philadelphia and Reading Railway and Philadelphia and Reading Coal and Iron Company. However, due to mandates from the Hepburn Act of 1906 requiring railroads to divest mining interests, the coal subsidiary was sold off.

The company’s legacy is notably preserved as one of the original properties on the classic Monopoly board game. While coal transport remained a core business segment, Reading diversified into numerous industries along its routes—averaging nearly five industries per mile—and grew into an essential bridge route.

Strategically located on the Alphabet Route linking Boston/New York City with Chicago, Reading facilitated traffic transfers from Lehigh Valley Railroad and Central Railroad of New Jersey at Allentown. Trains proceeded via East Penn Branch to Reading station, then west along Lebanon Valley Branch toward Harrisburg before continuing on the Philadelphia, Harrisburg and Pittsburgh branch to Shippensburg for westbound connections via Western Maryland Railroad. This Crossline route enhanced freight and passenger movement through coordinated pooling of locomotive resources among partner railroads.

Although it never fully regained its prominence from the 1870s, Reading sustained profitability and modernization from the early twentieth century through World War I. Significant capital investments were made in infrastructure upgrades uncommon among smaller railroads—including triple- and quadruple-tracking major corridors, improving signaling systems and track quality, expanding capacity, and upgrading station facilities.

Major projects included new cut-offs and bypasses such as the 1902 Reading Belt Line—a 7.2-mile bypass designed to reduce congestion in downtown areas—and a 1903 Schuylkill River bridge at Bridgeport that linked main lines for enhanced passenger service toward Norristown.

Between 1907 and 1914, the Ninth Street Branch leading into Reading Terminal was transformed from a double-track street-level line into an elevated quadruple-track route that increased capacity while improving safety conditions. In 1901, control over Central Railroad of New Jersey was secured by Reading, enabling direct service from Philadelphia’s Reading Terminal to Jersey City’s Communipaw Terminal via Bound Brook. Additionally, Baltimore and Ohio Railroad gained access to New York markets through control of portions of Reading tracks starting in 1903.

Further northward improvements included completion of the New York Short Line cut-off in 1906 to expedite freight bound for New York as well as Baltimore and Ohio’s Royal Blue passenger service.

These strategic infrastructure enhancements reflect the Reading Company’s business approach emphasizing capital investment aimed at expanding market presence and operational effectiveness within its sector.

Reading Shops

Founded in 1850 in Reading, Pennsylvania, the Reading Shops initially consisted of two roundhouses and a machine shop. By 1906, these facilities had expanded considerably along North 6th Street, becoming some of the largest railroad maintenance and construction complexes in the United States. Unlike many other railroads, Reading manufactured its own locomotives as well as freight and passenger cars onsite. The locomotive division employed roughly 2,000 individuals working across 70 erecting pits, while the car department added approximately 1,000 more workers. Additional car shops were located at Wayne Junction (Philadelphia), St. Clair/Pottsville, Tamaqua, Newberry Junction (Williamsport), and Rutherford near Harrisburg. Most of the original shop buildings still stand today, repurposed for uses unrelated to railroading.

To accommodate growing traffic demands, Reading introduced larger steam locomotives such as the massive N1 class 2-8-8-2 Mallet and the M1 class 2-8-2 freight engines—only one M1 was built by Reading itself; the rest were produced by Baldwin Locomotive Works. The heavy freight K-1 2-10-2 locomotives included units rebuilt from Mallets at Reading alongside others made by Baldwin. Passenger operations utilized G1 class 4-6-2 locomotives. These locomotive classes represented a deliberate evolution in Reading's motive power strategy.

The M1 engines were distinctive for being the first Reading locomotives equipped with a trailing truck and cabs positioned behind the Wootten firebox. Engines marked as "lessor" denoted steam power leased from external companies. The G1s were also notable for being Reading’s initial passenger locomotives featuring three-coupled driving wheels.

Between 1945 and 1947, Reading invested $6 million to rebuild 30 class I-10 2-8-0 locomotives into modernized T1 class 4-8-4 engines at the 6th Street shops. This initiative aimed to supplement limited EMD FT diesel locomotives by providing faster steam alternatives tailored to operational requirements. Although these steamers encountered operational difficulties and had relatively short service lives, the project helped maintain employment during the transition period. Four T1 locomotives have survived; notably, No. 2102 remains operational in tourist service with the Reading, Blue Mountain and Northern Railroad. Besides these, Reading produced or acquired numerous smaller 4-4-0, 2-8-0, and switcher locomotives to support its varied roster.

Passenger operations

The Reading Company operated several prominent named passenger trains, with the streamlined Crusader being its flagship service between Philadelphia and 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), Queen of the Valley (Jersey City–Harrisburg), Schuylkill (Philadelphia–Pottsville, Pennsylvania), and Wall Street (Philadelphia–Jersey City). The company also collaborated with Central Railroad Company of New Jersey and Delaware, Lackawanna & Western Railroad on operating The Interstate Express, connecting Philadelphia with Syracuse, New York.

Through-car service was provided in partnership with the Lehigh Valley Railroad via Bethlehem. The Reading held contracts with the U.S. Post Office for mail transportation and onboard sorting but ceased this operation in 1963 after notifying federal authorities in 1961; at that time, these contracts were worth $2.1 million. Subsequently, to reduce expenses, the company transitioned to using Budd RDC self-propelled railcars.

On July 20, 1904, train number 25 on the Camden-to-Atlantic City line set a speed record by covering 55.5 miles in just 43 minutes at an average velocity of 77.4 mph, with peak speeds reportedly reaching up to 115 mph during a brief stretch.

Reading maintained an extensive commuter rail network radiating from Reading Terminal in Philadelphia. By the late 1920s, much of this suburban system had been electrified, including lines such as the Ninth Street Branch, New Hope Branch, Bethlehem Branch, Doylestown Branch, and New York Branch. To support this electrification effort, the company ordered 150 electric multiple units from Bethlehem Steel, supplemented by twenty unpowered coach trailers converted from existing cars. Electrified services officially began on July 26, 1931.

Reading Company: 1924–1976

Following World War I and its release from federal oversight, the Reading Company reorganized its corporate framework. In 1924, the Philadelphia & Reading Railroad (P&R) discontinued its operations, allowing the Reading Company—initially established as a holding entity for P&R and the P&R Coal and Iron Company—to take over direct management of railroad activities. This restructuring supported the company’s strategic focus on consolidating and reinforcing its primary railroad business.

The postwar era represented the height of the Reading Company's market presence, with annual freight shipments reaching around 15 million tons of anthracite coal, 25 million tons of bituminous coal, and 30 million tons of industrial freight. Despite efforts to diversify and lessen reliance on anthracite coal, revenues from coal remained substantial, coinciding with Pennsylvania’s peak anthracite output in 1917, which neared 100 million tons.

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 for the year 1925 encompass subsidiaries including C&F, G&H, and P&CV, which were later integrated into Reading following consolidation efforts after 1929. These figures do not account for Atlantic City Railroad or PRSL operations. This corporate realignment mirrored the company’s shifting business approach aimed at boosting operational effectiveness and expanding its footprint within the railroad sector.

Commuter lines

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

Bankruptcy protection

In response to dwindling coal transport income, competition from trucking freight services, and restrictive government regulations that capped pricing and imposed heavy taxation, the Reading Company sought bankruptcy protection in 1971. These challenges compelled the company to continue operating loss-making routes, which further strained its financial health.

Electrification

The Reading Company sustained a broad commuter rail network centered on Philadelphia’s Reading Terminal. Several key suburban lines were electrified during the Great Depression era, including:

Electrification of the Fox Chase/Newtown branch was limited to Fox Chase within Philadelphia city boundaries in 1966 and was supported by public funding. Efforts to extend electrified service to Newtown were halted due to insufficient subsidies, resulting in passenger service beyond Fox Chase being discontinued in 1983 under SEPTA management.

Financial difficulties intensified as Reading continued servicing debt obligations owed to the bankrupt Penn Central Railroad without reciprocal financial support from that entity.

Post-railroad: 1976–present

On April 1, 1976, the Reading Company transferred its rail operations to the Consolidated Railroad Corporation (Conrail), while retaining ownership of approximately 650 real estate holdings, select coal assets, and 52 disused rights-of-way. Following Conrail's division between CSX Transportation and Norfolk Southern Railway in 1999, the majority of former Reading lines were absorbed by Norfolk Southern. Prior to emerging from bankruptcy in 1980, the firm sold off around 350 parcels of real estate.

During the late 1980s, entrepreneur and attorney James Cotter, based in Los Angeles, acquired control through Craig Corporation, his holding company. He utilized the company’s assets to fund cinema chains across Puerto Rico, Australia, and New Zealand. The final railroad-related property under Reading’s ownership, the Reading Terminal Headhouse, was sold in 1991. In 1996, Cotter reorganized the enterprise as Reading Entertainment. On December 31, 2001, Reading Entertainment combined with Craig Corporation and Citadel Holding Corporation—another Cotter-controlled entity.

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

Preserved steam locomotives

The company’s historical fleet includes nine steam locomotives that have been preserved:

  • Rocket (0-4-0) – Constructed in London in 1838; recognized as the oldest preserved locomotive; displayed at the Railroad Museum of Pennsylvania.
  • Shamokin (4-4-0) – Built in 1842; the sole remaining 4-4-0 model from the company; showcased at Philadelphia’s Franklin Institute.
  • Black Diamond (2-2-2 tank) – Manufactured in 1889 by Baldwin Locomotive Works; unique surviving U.S. inspection locomotive; currently on loan to St. Louis’s National Museum of Transportation.
  • Camelback 1187 (0-4-0) – Produced by Baldwin in 1903; last existing Reading camelback engine; preserved at Ohio’s Age of Steam Roundhouse.
  • Tank engine 1251 (0-6-0) – Built internally in 1918; only tank engine added after World War I; housed at the Railroad Museum of Pennsylvania.
  • Prototype T-1 class 2100 (4-8-4) – Originally built by Baldwin in 1923 and rebuilt in 1945; currently undergoing restoration at a former Baltimore and Ohio roundhouse in Cleveland.
  • 2101 (4-8-4) – Constructed in 1923 by Baldwin and rebuilt in 1945; displayed at Baltimore’s B&O Railroad Museum.
  • Operational 2102 (4-8-4) – Built and rebuilt similarly; restored to operational status and runs on the Reading Blue Mountain and Northern Railroad.
  • 2124 (4-8-4) – Built by Baldwin in 1924 and rebuilt in 1947; exhibited at Steamtown National Historic Site, Scranton.

These locomotives serve as tangible reminders of the company's heritage and enhance its cultural significance within heritage tourism sectors.

Notable Named Passenger Services on the Reading Line

Prominent named trains operating along the Reading route included:

  • Crusader: running from Jersey City to Philadelphia's Reading Terminal, passing through West Trenton
  • King Coal: connecting Philadelphia with Shamokin via Reading Franklin Street Terminal and Pottsville along the Main Line
  • Main Line: service extending to Pottsville
  • North Penn: linking Philadelphia to Bethlehem
  • Queen of the Valley (eastbound known as Harrisburger): from Jersey City to Harrisburg’s Transportation Center
  • Scranton Flyer: traveling to Scranton
  • Wall Street: operating between Philadelphia and Jersey City

Collaborations with other railroads facilitated additional routes:

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

Heritage Locomotives

To commemorate Norfolk Southern’s 30th anniversary in 2012, twenty locomotives were adorned in historic paint schemes representing predecessor lines. Among them was NS #1067, an EMD SD70ACe, showcasing the Reading’s Bee Line Service colors; this unit was repainted in 2023.

In 2024, SEPTA introduced two Silverliner IV heritage railcars—numbers 280 and 293—restored to their original 1974 Reading Company livery, celebrating five decades since their debut.

Leadership of the Company

The Reading Company’s presidents played pivotal roles in guiding its development and strategic direction:

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

In Popular Media

The Reading Railroad holds a place in popular culture as one of the four railroads available for purchase in the original Monopoly board game, highlighting its historical prominence within the transportation industry.

See Also

  • Great Railroad Strike of 1877
  • Schuylkill Canal

References

Further Reading

External Links

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