The Reading Company (RDG) bought the CNE&W and Poughkeepsie Bridge Company from D&NE in January 1892, extending RDG's influence to New England via the Pennsylvania, Poughkeepsie & Boston Railroad. The two companies merged on August 1, 1892 to form the Philadelphia, Reading & New England Railroad (PR&NE). RDG proved unable to handle its new acquisitions, and PR&NE defaulted on its interest payments in May 1893. The final reorganization came on January 12, 1899 with the formation of the Central New England Railway (CNE).