Page:Municipal Handbook of Auckland 1922.djvu/187

 be required to sell except on such conditions as might be mutually agreed upon between the parties.

The negotiations for purchase had therefore to proceed on the lines of mutual agreement. In continuance of the negotiations for purchase a valuation report of the tramways was obtained from Mr. William Ferguson, M.I.C.E., M.I.M.E., and under date of the 2nd April, 1919, an option-of-purchase was entered into between the Company and the Council, possession to be given on the 1st July, 1919, in the event of the Council exercising the option. The option-of-purchase was eventually exercised, and the City entered into possession on the date mentioned. The purchase price was £1,227,201 8s 7d. The amount was paid in Debentures of the Corporation, having a currency of 21 years from 1st July, 1919, £392,800 bearing interest at 5 per cent., and the balance at 5¼ per cent. By the purchase the Corporation secured the whole of the electric tramways in the City and suburbs of Auckland, together with all the lands, buildings, works, machinery, material and plant of the Company used by it for the purpose of its tramway undertaking, or in transit to it, at the date of possession, and further all assets, contracts and engagements in connection therewith.

This is situated in Hobson Street, the area of the property being 3.375 roods. The original plant consisted of three horizontal compound engines, each direct