On February 28, 1907, the South Brooklyn Railway and the Brooklyn Heights Railroad were split from each other, but both were still owned by the BRT. The South Brooklyn Railway was a separate subsidiary company that carried both passengers and freight, to avoid the BRT from being operated under Interstate Commerce Commission regulations. The Brooklyn Heights Railroad leased the Prospect Park and Coney Island Railroad, which included the Prospect Park and South Brooklyn Railroad, giving it a line to Coney Island.