Mr. Pease approved of his design, and strongly recommended him to carry it into effect. But there was the question of means; and Stephenson did not think he had capital enough for the purpose. He told Mr. Pease that he could advance £1000--the amount of the testimonial presented by the coal-owners for his safety-lamp invention, which he had still left untouched; but he did not think this sufficient for the purpose, and he thought that he should require at least another £1000. Mr. Pease had been very much struck with the successful performances of the Killingworth engine; and, being an accurate judge of character, he believed that he could not go far wrong in linking a portion of his fortune with the energy and industry of George Stephenson. He consulted his friend Thomas Richardson in the matter, and the two consented to advance £500 each for the purpose of establishing the engine factory at Newcastle. A piece of land was accordingly purchased in Forth Street, in August, 1823, on which a small building was erected--the nucleus of the gigantic establishment which was afterward formed around it; and active operations were begun early in 1824. While the Stockton and Darlington Railway works were in progress, our engineer had many interesting discussions with Mr. Pease on points connected with its construction and working, the determination of which in a great measure affected the formation and working of future railways. The most important points were these: 1. The comparative merits of cast and wrought iron rails. 2. The gauge of the railway. 3. The employment of horse or engine power in working it when ready for traffic.