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 public traffic. The other sections of the tramways were opened at intervals.

The Electric Tramways Company, Limited, was a successful undertaking, and paid its first dividend of 4½ per cent. for 1903, followed by 6 per cent. for 1904, 7 per cent. for 1905 and 1906, 6 per cent. for 1907, 1908, 1909 and 1910, 7 per cent. for 1911, 7½ per cent. for 1912, 1913, 1914, 1915, 1916, 1917 and 1918, and 5 per cent. for 1919.

Negotiations for the purchase of the electric tramways by the Auckland City Council commenced in February, 1919, but as the Company's tenure of the City lines did not expire until the 1st June, 1932, the City could not take advantage of the clause providing for purchase in the Deeds of Delegation. This clause made provision for the Local Authority to purchase the Tramway system at the expiry of the term of concession on the basis of its value as a going concern, but not including any sum for goodwill. In the case of a dispute as to the price to be paid, the question was to be submitted to the arbitration of three indifferent persons, one to be chosen by each of the parties, and the third to be named by the two persons first chosen, the arbitration to be conducted in Auckland conformably to the provisions of the "Arbitration Act, 1890." Provision was also made for the Local Authority to purchase before the expiry of the term of concession, but no terms could be laid down as in such case the Company could not