substitution for trolley cars on those portions of the route over
which the Company holds trolley franchises. The Transit Com¬
mission, after public hearings, issued certificates of convenience
and necessity for the operation of this extended route and service
over the route was begun on May 27, 1932. The Company has
purchased six new electric buses for this experimental operation
on the extended route to supplement the two electric buses oper¬
ated on the former Cortelyou Road Line. The franchise granted
by the City is for a period of two and one-half years.

A condensed consolidated balance sheet and a comparative
statement of income and of surplus are appended to this report.

Respectfully submitted,

Gerhard M. Dahl,

Chairman.