History of the Reading Anthracite Company

Legacy of Leadership: From Philadelphia & Reading Coal and Iron to Reading Anthracite

Reading Anthracite Company traces its roots to the Philadelphia and Reading Coal and Iron Company (P. & R. C. & I.), established in 1871 as a subsidiary of the Philadelphia and Reading Railroad. Initially involved in both coal mining and railroading, the company played a critical role in the industrial development of the northeastern United States. Anthracite was a vital resource at the time, fueling factories, railroads, and steel mills during the height of America’s industrial revolution. For decades, P. & R. C. & I. was a key player in the energy supply chain, helping to shape the industrial landscape of the region.

By the mid-20th century, the company underwent significant transformations, including a corporate reorganization in 1956 when it changed its name to The Philadelphia & Reading Company. During this restructuring phase, they formed Reading Anthracite Company to oversee the anthracite coal operations under the new corporate identity. In the 1950s, Warren Buffett, then working with the Graham-Newman partnership under his mentor Benjamin Graham, was actively involved in analyzing and managing P. & R. C. & I. as a value investment. Buffett recognized its potential due to its cash reserves and valuable tax loss carryforwards, despite the challenges of a declining industry. The investment marked an early example of his deep-value strategy, which prioritized assets undervalued relative to intrinsic worth and redirected resources toward more profitable ventures, such as Union Underwear, the maker of Fruit of the Loom.

In 1961, The Philadelphia & Reading Corporation divested its anthracite coal interests, selling Reading Anthracite Company to its present owners, the Rich family, with Mickey Newman facilitating the deal and Warren Buffett serving as an analyst—a milestone that marked the company’s separation from its railroad origins. Under the leadership of John B. Rich, the first generation of the Rich family, Reading Anthracite expanded its operations and modernized its practices. His son, John “Jack” W. Rich, the second generation of leadership, continued this legacy, playing a pivotal role in guiding the company through the evolving demands of the anthracite industry. During Jack’s tenure, the company reinforced its position as the largest producer of anthracite in the United States and adapted to serve more modern industrial applications, moving beyond the company’s historical reliance on railroads and steel mills.

Today, Reading Anthracite remains family-owned and operated, with Brian R. Rich, the third generation, leading the company. With a continued focus on innovation, customer reliability, and contributing to national security, the company upholds its historical roots while being a leader in premium carbon production. Serving both domestic and international markets, Reading Anthracite plays a crucial role in supporting industries vital to infrastructure and energy independence. Building on a legacy that began with the Philadelphia and Reading Coal and Iron Company a century and a half ago, the company continues to provide reliable solutions that are integral to America’s industrial and security needs.