This sum represents the purchase price of the whole of the capital stock of the General Service Company, which held a concession for hauling and storage.  From a balance sheet of that company, recently prepared, it would appear that the amount to be realized by the Exposition Company in respect of this investment will be about $104,000.  We are advised by the president that in spite of the apparent loss of $21,000 involved, this transaction is regarded by the Exposition Company as an advantageous one, inasmuch as, at the time it was effected, there were serious controversies and substantial claims in question between the two companies, and by the purchase these claims were, of course, completely disposed of; and, moreover, the installation of exhibits was much expedited and serious inconvenience to exhibitors avoided.

    Money Advanced.

The principal item included under this head is an amount of $152,000 advanced to the emergency exploitation committee from time to time to meet the expenses incurred by that committee.  Practically the whole of this amount has been expended, but up to the date of our audit vouchers for the expenditures had not been turned in by the committee or put through the general books of the company.  We understand that this is now being done.

    Board of Lady Managers.

Included under this head is the full amount of $100,000 appropriated for the board out of the Government loan of $4,600,000.  This sum was paid by the company into a special account, subject to the order of the board, and no details as to the disbursement thereof appear on the books, owing, as we are informed, to the fact that no report of such disbursements has yet been made by the board to the Exposition Company.

    Cash Balances.

    Certificates of deposit have been produced to us, and we have
    been furnished with a certificate from the bank as to the
    balance on current account.

The cash immediately available for the general purposes of the company amounts to $668,754.36, the remaining $182,846.41 being deposited in a special account to secure the sureties under various bonds given on behalf of the company.

Of this total of $182,846.41, the sum of $120,768.18 is derived from Pike rentals, as hereinbefore explained.  The balance of $62,078.23 consists of receipts of the music bureau, which were originally paid into a separate fund because of a difference between the bureau of music and the division of concessions as to the policy in operating Festival Hall.  Subsequently the president recommended that this fund be added to the fund held for the protection of the sureties, in accordance with the authority granted to the executive committee by the board of directors to make such provision as might be deemed advisable to protect these sureties, and the president informs us that this suggestion