and the remainder are under option. These bonds are sufficient
in amount to provide funds for the requisite construction pur¬
poses of the Company, including, as closely as can be estimated,
nearly, if not quite, all the needed additions to the plant for the
year now beginning.

While your Directors are convinced that the true interests
of the Company require continued development, as fast as may
be consistent with business prudence, yet they feel that this
same prudence now demands that the additions of the present
year should be somewhat more restricted than usual, and should
be made only where they are likely to return the quickest
revenue. In this way the existing plant will be utilized to the
best advantage, and it is fully believed that the profits of the
Company will be increasingly satisfactory to all concerned.

The construction of the Elm Street Station has been pushed
forward, the exterior having been in the main finished. The
permanent boiler room has been in use for some weeks, and
the upper floors, including those intended for the offices of the
Company, will be finished for occupancy during the early part
of the present year.

The new 2,500 horse-power generator was installed at the close
of last year, and the temporary plant in the yard next to the
Elm Street Station will soon be discontinued, and put to other uses.

For a part of 1893, the old Pearl Street Station was not in
use, but during the heavy load of this winter it has been used to
supplement the Elm Street Station. It is hoped, however,
that we shall be able to discontinue it entirely during the year
now begun. These changes will permit the concentration of all
of the Company's generating apparatus down-town in the one
large station, with the exception of the small subsidiary plant
at the Produce Exchange Annex, thus completing another and
most important step toward an increased economy in operation.

The equipment of the 26th Street Station has been completed
to its full capacity during the year, and the generating ap¬
paratus at the 39th Street Station has been increased.

The underground extensions of the year have been confined
chiefly to Fifth Avenue, from 60th to 79th Streets, and the
adjacent blocks to the east, resulting in a large increase of
installation in that important residential quarter; 10 the develop¬
ment of feeders and mains where elsewhere necessary to supply