The result was that while the outside bars would be welded, the inside would be improperly welded, or, the hammer being weak, the blow would be insufficient to secure the proper weld, and it was no uncommon thing for a shaft to break and expose the internal bars, showing them to be quite separate, or only partially united. This danger has been much lessened in late years by careful selection of the materials, improved methods of cleaning the scrap, better furnaces, the use of the most suitable fuels, and more powerful steam hammers. Still, with all this care, I think I may say there is not a shaft without flaws or defects, more or less, and when these flaws are situated in line of the greatest strains, and though you _may not_ have a hot bearing, they often extend until the shaft becomes unseaworthy. [Diagrams shown illustrated the various forms of flaws.] These flaws were not observable when the shafts were new, although carefully inspected. They gradually increased under strain, came to the outside, and were detected. Considerable loss fell upon the owners of these vessels, who were in no way to blame; nor could they recover any money from the makers of the shafts, who were alone to blame. I am pleased to state, and some of the members here present know, that considerable improvement has been effected in the use of better material than iron for crank shafts, by the introduction of a special mild steel, by Messrs. Vickers, Sons & Co., of Sheffield, and that instead of having to record the old familiar defects found in iron shafts, I can safely say no flaws have been observed, when new or during eight years running, and there are now twenty-two shafts of this mild steel in the company's service. I may here state that steel was used for crank shafts in this service in 1863, as then manufactured in Prussia by Messrs. Krupp, and generally known as _Krupp's steel_, the tensile strength of which was about 40 tons per square inch, and though free from flaws, it was unable to stand the fatigue, and broke, giving little warning. It was of too brittle a nature, more resembling chisel steel. It was broken again under a falling weight of 10 cwt. with a 10 ft. drop = 121/2 tons.