After the Panic of 1893, and the failure of Archibald A. McLeod's efforts to turn the Reading into a major trunk line, the Reading was forced to reorganize under suspicions of monopoly. The Reading Company was created to serve as a holding company for the Reading's rail and coal subsidiaries: the Philadelphia and Reading Railway, and the Philadelphia and Reading Coal and Iron Company, respectively. However, in 1906, with the support of the Roosevelt Administration, the Hepburn Act was passed. This required all railroads to disinvest themselves of all mining properties and operations, and so the Reading Company was forced to sell the P&R Coal and Iron Company.
