Note 3—The cost of the 34,247 shares of reacquired Common Stock has
been included in the balance sheet as follows:

Capital Stock, at capital value...............  $1,393,695.19

Excess of cost over par or capital value, etc. ..       278,012.37
 

Total cost of reacquired stock...........  $1,671,707.56

Note 4—The liabilities and reserves shown in the balance sheet do not
include the following:

Contractual liability of WiUiamsburgh Power Plant Corporation for urn-
completed purchase orders for power station equipment to cost approxim¬
ately $3,000,000.00, delivery of which is expected within the next fiscal year.

Contractual liability of Brooklyn-Manhattan Transit Corporation under
an agreement with certain banks, dated November 1, 1935, to purchase collat¬
eral pledged by the Brooklyn and Queens Transit Corporation to secure its
five-year 3}i% notes for $3,000,000.00.

Contractual liability of Brooklyn-Manhattan Transit Corporation for
$140,000.00, representing the unpaid balance of a subscription to New York
World's Fair 1939 Inc., 4% Debentures, due January 1, 1941, of which
$80,000.00 is payable prior to June 30, 1938.

Possible liability for taxes in excess of provision therefor. Until the in¬
come tax returns have been finally approved by the Treasury Department
and until pending lawsuits relating to special franchise taxes, real estate taxes
and gross receipts taxes are finally decided, it cannot be determined whether
the provisions are adequate or excessive.

Other possible liabilities contingent on future happenings, including
habilities that may arise out of indemnity agreements, dormant lawsuits, etc.,
not subject to estimate.
 

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