The equipment of the road included, under the terms of the contract, the rolling stock, all machinery and mechanisms for generating electricity for motive power, lighting, and signaling, and also the power house, sub-stations, and the real estate upon which they were to be erected. The magnitude of the task of providing the equipment was not generally appreciated until Mr. Belmont took the rapid transit problem in hand. He foresaw from the beginning the importance of that branch of the work, and early in 1900, immediately after the signing of the contract, turned his attention to selecting the best engineers and operating experts, and planned the organization of an operating company. As early as May, 1900, he secured the services of Mr. E. P. Bryan, who came to New York from St. Louis, resigning as vice-president and general manager of the Terminal Railroad Association, and began a study of the construction work and plans for equipment, to the end that the problems of operation might be anticipated as the building and equipment of the road progressed. Upon the incorporation of the operating company, Mr. Bryan became vice-president. In the spring of 1902, the Interborough Rapid Transit Company, the operating railroad corporation was formed by the interests represented by Mr. Belmont, he becoming president and active executive head of this company also, and soon thereafter Mr. McDonald assigned to it the lease or operating part of his contract with the city, that company thereby becoming directly responsible to the city for the equipment and operation of the road, Mr. McDonald remaining as contractor for its construction. In the summer of the same year, the Board of Rapid Transit Railroad Commissioners having adopted a route and plans for an extension of the subway under the East River to the Borough of Brooklyn, the Rapid Transit Subway Construction Company entered into a contract with the city, similar in form to Mr. McDonald's contract, to build, equip, and operate the extension. Mr. McDonald, as contractor of the Rapid Transit Subway Construction Company, assumed the general supervision of the work of constructing the Brooklyn extension; and the construction work of both the original subway and the extension has been carried on under his direction. The work of construction has been greatly facilitated by the broad minded and liberal policy of the Rapid Transit Board and its Chief Engineer and Counsel, and by the cooeperation of all the other departments of the City Government, and also by the generous attitude of the Metropolitan Street Railway Company and its lessee, the New York City Railroad Company, in extending privileges which have been of great assistance in the prosecution of the work. In January, 1903, the Interborough Rapid Transit Company acquired the elevated railway system by lease for 999 years from the Manhattan Railway Company, thus assuring harmonious operation of the elevated roads and the subway system, including the