EXHIBIT 23.1



                        CONSENT OF INDEPENDENT AUDITORS


We consent to the incorporation by reference in the Registration Statements
(Forms S-8 No. 2-83039 and No. 33-57222) pertaining to the stock option
plans of Reading Company of our report dated February 16, 1996, with respect
to the consolidated financial statements and schedule of Reading Company
included in the Annual Report (Form 10-K) for the year ended December 31, 1995.


Philadelphia, Pennsylvania
March 27, 1996