The flywheel of a steam engine in motion is an example of a body possessing kinetic energy. Some of this kinetic energy which was stored up in the fly wheel during the working stroke is expended in moving the engine over the “dead center,” and any other point where no torque is produced by the pressure on the piston. =Chemical Energy= can be converted into electric energy to a limited extent by means of the electric battery, but the cost of this energy is so high that it is commercially feasible only where small quantities are required, and the cost of production is secondary to the convenience of generation, as for signalling purposes, the operation of bells and annunciators, etc. The chemical energy of coal and other fuels cannot be directly converted into electric energy. For power producing purposes, the chemical energy of a fuel is first converted into heat by combustion, and the heat thus obtained converted into mechanical energy by some form of heat engine, and the mechanical energy subsequently transformed into electric energy in an electric generator. _Energy cannot be created or destroyed._ This is the law known as the =conservation of energy= which has been built up by Helmholtz, Thomson, Joule and others. It teaches further, that energy can be transmitted from one body to another or transformed in its manifestations. Energy may be dissipated, that is, converted into a form from which it cannot be recovered, as is the case with the great percentage of heat escaping from the exhaust nozzle of a locomotive or in the circulating water of a steamship, but the total amount of energy in the universe, it is argued, remains constant and invariable. Following this law comes the doctrine of the =conservation of electricity= as announced by Lippman, being undoubtedly the outcome of the ideas of Maxwell and of Faraday as to the nature of electricity. According to their doctrine, electricity _cannot be created or destroyed, although its distribution may be altered_. Lippman states that every charge of electricity has an opposite and equal charge somewhere in the universe more or less distributed; that is, the sum of positive charges is always equal to the sum of negative charges. In _altering the distribution of electricity_, we may cause =more= to appear at one place and =less= at another, or may change it from the condition of rest to that of motion, or may cause it to spin round in whirlpools or vortices, which themselves can attract or repel other vortices. According to this view all our electrical machines and batteries are merely instruments for altering the _distribution_ of electricity by moving some of it from one place to another, or for causing electricity, when accumulated or heaped, together in one place, to do work in returning to its former distribution.