new business, and to establishing the system in streets included
in the new paving plans of the city authorities.

The policy of your Directors in discontinuing the business of
installation work inside of buildings, as referred to in the last
report, has been thoroughly justified by the events of the year,
over loo different contractors having made satisfactory in¬
stallations in connection with our system. It is gratifying to
note that half of this work has been done by the New
York Electric Equipment Company, to which the old
Wiring Department of this Company had been transferred.
Your Company has, however, been most careful to hold an even
hand among the several contractors, so that it should not be
accused of giving one an advantage over another.

The careful oversight given to the affairs of the Manhattan
Electric Light Company, Limited, and The Harlem Light¬
ing Company, in which this Company became interested, as
stated in our last report, has resulted in a satisfactory develop¬
ment, those corporations both having shown an increase of earn¬
ings during the year, sufficient to justify the expectation of
the ultimate payment of satisfactory dividends. The actual
and contingent obligations existing in connection with the
Manhattan and Harlem purchase, are now reduced to about
^400,000, maturing at various dates from the spring of 1894
to the winter of 1894-1895. It will also be desirable to make a
moderate expenditure during the year in enlarging the Man¬
hattan plant. To meet all these outlays, your Company holds
about $600,000 of the Manhattan Company's first mortgage
bonds, which it will, perhaps, be expedient to guarantee and
dispose of, from time to time, as opportunity shall offer. A
special meeting of the stockholders will probably be called
later on to consider this matter.

The Courts have confirmed the Edison lamp patents by
numerous decisions during the year, as a result of which, arrange¬
ments have been made to collect considerable sums for the past
use of infringing lamps, as well as to provide for the payment
in the future of royalties for the use of the Edison lamp.

By order of the Board of Directors,

SPENCER TRASK,
New York, January nth, 1894.                                 President.