Which U.S. railroad company became the largest bankruptcy of the Panic of 1893?

The Philadelphia and Reading Railroad became the largest bankruptcy of the Panic of 1893.

The Philadelphia and Reading Railroad, commonly called the Reading, entered bankruptcy during the financial crisis of 1893. Its failure was a major warning sign in a period marked by railroad overbuilding, excessive debt, falling commodity prices, and investor anxiety about the U.S. banking system.

The Reading had expanded aggressively and carried heavy financial obligations. Its collapse contributed to a loss of confidence that spread through railroads, banks, and businesses. The Panic of 1893 produced one of the most severe economic downturns in nineteenth-century America, with widespread unemployment and numerous bank and railroad failures.

The Reading should not be confused with the Union Pacific, which also failed during the panic and received federal assistance. The crisis was not caused by one company alone; the railroad sector's interconnected debts made individual failures especially disruptive.