In 1905, the Postmaster-General and the National Telephone Company concluded an agreement for the purchase of the company's provincial plant based upon much the same principles which had governed the London agreement. The question of purchase in the provinces was complicated by the fact that in some towns there were competing municipal telephones, a resulting duplication of plant, and an extension of the licence period beyond 1911. By the terms of the agreement, the Postmaster-General on the 31st of December, 1911, shall buy and the National Telephone Company shall sell (_a_) "all the plant, land, and buildings of the company brought into use with the sanction of the Postmaster-General and in use on the 31st of December, 1911, for the purpose of the telephonic business of the Company, (_b_) any licensed business of the company in towns where there are municipal exchanges and where the licence extends beyond 1911, (_c_) the private wire business of the company (for which no licence is required) in use after the 31st of December, 1911, with buildings, plant, etc., (_d._) all stores and buildings suitable for use in accordance with specifications contained in the agreement, (_e_) all spare plant and works under construction if suitable for the telephonic business of the Post Office." The plant, land, and buildings were deemed to be brought into use with the sanction of the Postmaster-General if they were in use or being brought into use at the date of the agreement; in the case of plant to be installed, if constructed in accordance with specifications contained in the agreement and of land and buildings, if acquired or constructed with the consent of the Postmaster-General. With reference to plant not constructed in accordance with the specifications, and plant and buildings of any kind in competitive areas, the Postmaster-General reserved the right to object to buy such plant or buildings, the question of suitability in competitive areas to be settled by arbitration. The value to be paid for the company's undertaking, not in the competitive areas and not being private wire business, shall be the value on the date of purchase exclusive of any allowance for past or future profits or any consideration for compulsory sale or any other consideration. The value in competitive areas is to be determined by agreement, regard being had to net profits and to the circumstances and conditions under which the company would carry on such business after the date of sale. The value of the private wire business (apart from the plant, land, and buildings used therein) is to be three years purchase of the net profits on the average of the three years ending 31st of December, 1911. Any other property or assets of the company may be purchased by the Postmaster-General, the price to be determined by arbitration, if necessary, and, after the date of sale, the telegraphic business of the company will be carried on (whether by