The aerials are slightly deceiving. Per the 1902 USGS topo and a 1915 PennDOT map, the ROW shown in your last picture cut across what's now a cleared field in a straight line, crossed State Road somewhat NW of its junction with Walker, then crossed Walker Rd, keeping more or less straight across St Peters Rd and ending a short distance beyond. The remains of this part of the ROW are a series of discontinuous treelines. Check the Google Maps imagery: if you switch to the "Map" view, it now shows cadastral (tax) boundaries, and you can see where the ROW crosses St Peters Rd as a separate parcel.
Don't know much about this end of the line, other than it was supposed to haul magnetite to the furnaces along the Lehigh to mix with the limonite ore mined closer to the river. IIRC, Holton shows a map of the Reading's plan to connect it to the Colebrookdale Branch at Barto, which of course was never built. Don't know what the motivation was for that, although they did mine ore at that end of the Colebrookdale Branch as well.