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