In 1868, the Institute purchased a vacant lot on the east of its building, on Adelaide Street, with the intention of erecting thereon a larger music hall than it possessed. The contemplated improvement was not carried out by the Institute; but the Free Library Board has now made the extension very much as at first intended, but for library purposes only. In the year 1871, the Ontario Government purchased the property from the Institute for the sum of $36,500, for the purposes of a School of Technology, then being established. The sale left in the Institute treasury upwards of $11,000, after paying off all its liabilities; and owing to the liberality of the Government in allowing the Institute to occupy the library, reading-room, and boardroom free of rent during its tenancy, it was placed in a very favourable position, and considerably improved its finances. In 1876, the Government resolved to erect a more suitable building for the School of Technology (then named "School of Science"), in the University Park, and re-sold the property it had purchased to the Institute for $28,000. Many alterations were made in the building when the Institute got possession. A ladies' reading-room was established, the music hall was made a recreation-room, with eleven billiard tables, chess-boards, &c., for the use of the members. This latter feature was a success, both financially and otherwise. In the year 1882, the "Free Libraries Act" was passed, which provided that if adopted in any municipality, the Mechanics' Institute situated therein may transfer to such municipality all its property for the purposes of the Act. The ratepayers of Toronto having, by a large majority, decided to establish a Free Library, the members of the Institute in special general meeting held on 29th March, 1883, by an almost unanimous vote, resolved to make over all its property, with its assets and liabilities, to the City Corporation of Toronto for such library purposes; and both the parties having agreed thereto, the transfer deed giving legal effect to the same, was executed on the 30th day of June, in the said year 1883.