With such brilliant results obtained in the past, the prospects of the central station industry are certainly most dazzling. While the growth of the business has been phenomenal, more especially since 1890, I think it can be conservatively stated that we have scarcely entered upon the threshold of the development which may be expected in the future. In very few cities in the United States can you find that electric illumination exceeds more than 20 per cent. of the total artificial illumination for which the citizens pay. If this be the state of affairs in connection with the use of electricity for illuminating purposes, and if you will bear in mind the many other purposes to which electricity can be adapted throughout a city and supplied to customers in small quantities, you may get some faint conception of the possible consumption of electrical energy in the not far distant future. Methods of producing it may change, but these methods cannot possibly go into use unless their adoption is justified by saving in the cost of production—a saving which must be sufficient to show a profit above the interest and depreciation on the new plant employed. It is within the realms of possibility that the present form of generating station may be entirely dispensed with. It has already been demonstrated experimentally that electrical energy may be produced direct from the coal itself without the intervention of the boiler, engine and dynamo machine. Whether this can be done commercially remains to be proved. Whatever changes may take place in generating methods, I should, were I not engaged in a business which affords so many remarkable surprises, be inclined to question the possibility of any further material change in the distributing system. Improvements in the translating devices, such as lamps, may add enormously to the capacity of the distributing system per unit of light; but it does seem to me that the system itself, as originally conceived, is to a large extent a permanency. Should any great improvements take place in the medium employed for turning electrical energy into light, the possible effect on cost, and consequently selling price, would be enormous.