Reading Railroad (The Reading Company) – RDG

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Reading Railroad

  • Even though it did not cross the Appalachian Mountains, the Reading Railroad did have its share of challenges navigating the mountains.

The Reading Railroad, officially known as the Reading Company (and earlier the Philadelphia and Reading Railroad or Railway), stands as one of the most iconic railroads in American history. Chartered in 1833 and immortalized as a property on the original Monopoly board game, it played a pivotal role in transporting anthracite (hard coal) from eastern Pennsylvania’s rich fields to markets, particularly Philadelphia. Its story spans ambitious growth, monopolistic ambitions, repeated financial crises, and eventual absorption into modern rail systems.

Origins and Purpose

The Philadelphia and Reading Railroad was incorporated on April 4, 1833, to provide efficient, low-cost transportation of anthracite coal from the Schuylkill anthracite region (around Pottsville and other areas) to Philadelphia. At the time, canals like the Schuylkill Canal dominated coal transport, but they were slow, seasonal, and limited by weather. Railroads promised year-round reliability and greater capacity.

The main line opened in stages, reaching from Philadelphia along the Schuylkill River through Reading to Pottsville by 1842—a distance of about 93 miles. This route followed the river valley, avoiding the most rugged terrain initially. The primary purpose was freight: hauling anthracite to Philadelphia’s docks for domestic heating, industrial use, and export. Passenger service grew as a secondary but important function, connecting communities and enabling suburban commuting later on.

As anthracite demand surged during the Industrial Revolution, the Reading expanded aggressively. It acquired or leased nearly 100 smaller railroads over the decades, building a network radiating from Philadelphia and Reading, Pennsylvania, into eastern Pennsylvania, parts of New Jersey, and Delaware.

Expansion and Monopoly Ambitions

Under leaders like Franklin B. Gowen (president in the 1870s), the Reading pursued vertical integration. In 1870, it bought the Schuylkill Canal to eliminate competition. In 1871, it formed the Philadelphia & Reading Coal & Iron Company, acquiring coal mines and controlling over 40% of U.S. anthracite reserves. This made it a near-monopoly in hard coal.

By the late 19th century, the Reading sought trunk-line status (long-distance main routes). It leased lines like the Lehigh Valley (1891), gained stakes in the Central Railroad of New Jersey, Delaware, Lackawanna & Western, and even Boston & Maine, controlling much of the anthracite trade. At its peak, it influenced over 70% of anthracite shipments.

However, overexpansion and debt led to trouble. The Panic of 1893 collapsed financier A.A. McLeod’s empire, forcing receivership. Attempts at further expansion were blocked by J.P. Morgan and other barons to limit competition. The Reading remained a regional carrier, focused on anthracite and local freight/passenger service.

Navigating the Appalachian Mountains

The Reading’s core operations were in the Ridge-and-Valley and Piedmont regions of eastern Pennsylvania, not requiring extreme Appalachian crossings like those farther west or south (e.g., Clinchfield or Chesapeake & Ohio routes with major tunnels through the Blue Ridge or Alleghenies).

The main line followed the Schuylkill River valley, a natural lowland gap through the Appalachian foothills. To the north and west, branches extended into the anthracite fields around Pottsville, Mahanoy City, and Scranton areas—regions within the folded Appalachian ridges but using river valleys and relatively gentle grades.

The Reading did build through hilly terrain, including some tunnels and cuts, but avoided the high, rugged central Appalachians. For example, routes to New Jersey used leased lines like the Delaware & Bound Brook (opened 1879), crossing flatter areas or using existing infrastructure. In Pennsylvania, expansions into the coal regions navigated the anthracite basin’s valleys rather than piercing major mountain barriers. This kept construction costs lower than competitors tackling steeper grades or long tunnels elsewhere in Appalachia.

Financial History

The Reading’s finances were turbulent. Heavy debt from expansions and coal acquisitions caused bankruptcy in 1880 (after Gowen’s aggressive moves, including battles with unions and the Molly Maguires). It recovered but faced receivership again in 1886.

In the 1890s, to avoid antitrust breakup of its coal-rail monopoly, owners formed the Reading Company as a holding company. A 1924 Supreme Court ruling forced separation: the coal subsidiary became independent, and the Reading Company became the operating railroad (merging subsidiaries).

The 20th century brought decline. Anthracite demand fell after World War I as bituminous coal, oil, and natural gas rose. The Great Depression hit hard. Post-WWII, competition from trucks, highways, and automobiles eroded freight and passenger traffic. Strict ICC regulations limited rate flexibility, and passenger losses mounted.

The Reading entered bankruptcy in 1971, burdened by debt, declining coal, and obligations (e.g., to Penn Central, also bankrupt). It relied on subsidies from SEPTA (Southeastern Pennsylvania Transportation Authority) for commuter services.

Legacy and How It Exists Today

On April 1, 1976, under the Regional Rail Reorganization Act, the Reading’s rail assets were transferred to Conrail (Consolidated Rail Corporation), a government-created entity absorbing several bankrupt Northeastern railroads (including Penn Central, Erie Lackawanna, Lehigh Valley, and others).

Conrail stabilized operations before being privatized in 1987. In 1999, Conrail was split: most former Reading lines went to Norfolk Southern Railway (NS), with some to CSX Transportation.

Today, no independent “Reading Railroad” operates. Remnants include:

  • Freight on NS and CSX tracks (e.g., former main line segments).
  • Commuter service under SEPTA’s “Reading Lines” (e.g., Airport, Chestnut Hill West, Fox Chase, Lansdale/Doylestown, Manayunk/Norristown, Paoli/Thorndale, Trenton, Warminster, Wilmington/Newark lines), still called “Reading” in some contexts.
  • Preservation: The Reading & Northern Railroad (RBM&N), a regional short line, operates on former Reading trackage in the anthracite region, running freight and excursion trains (including steam locomotives like ex-Reading 4-8-4 No. 2102 or others).

The Reading’s heritage endures through museums, historical societies, preserved stations (e.g., Reading Terminal Market site in Philadelphia), and its Monopoly fame. It symbolizes the anthracite era’s boom and bust, regional rail’s challenges, and the Northeast’s railroad consolidation.

For More Information – Sources and Resources

The following are excellent resources for those of you wanting to explore and learn more about the history and operation of the Appalachian Railroads. These sources of information also serve as reference and historical materials for Appalachian-Railroads.org. Much of the collective railroad history data points on this website are verified across multiple sources.

3Cs Websites

Appalachian-Railroads.org | Clinchfield.org | Southern-Railroads.org