I believe that if the longitudinal valve were restored, the working expenses might be immensely reduced; that the quantity of fuel consumed which is the great item of expense, may be diminished by one-third; that the price of the fuel, which now costs 18s. per ton at the engine-houses, ought to be reduced at least 12 per cent.; and that the total cost may thus be brought down to a moderate amount, such as I had originally calculated upon. But the cost of construction has far exceeded our expectations, and the difficulties of working a system so totally different from that to which everybody, traveller as well as workmen, is accustomed, have proved too great; and therefore, although, no doubt, after some further trial, great reductions may be effected in the cost of working the portion now laid, I cannot anticipate the possibility of any inducement to continue the system beyond Newton. With respect to the future working of the apparatus between Exeter and Newton, I feel in great difficulty as to expressing any opinion, seeing that a very large expense has been incurred, and believing, as I do, that the cost of working may be so very much reduced; but that reduction can only be effected by the almost entire renewal of the valve, and by some expenditure in the engines. And unless Mr. Samuda or the patentees undertake the first, and extend considerably the period during which they would maintain it in repair, and unless they can offer some guarantee for the efficiency of that valve, I fear that the Company would not be justified in taking that upon themselves, or incurring the expense attending the alteration of the engines. I believe that for the inclined planes, as an assistant power, the apparatus will be found applicable and efficient; and as the engines and the pipes are nearly ready at Dainton, it may be found desirable to try it there, provided a satisfactory arrangement can be entered into for the maintenance and efficiency of the valve. I have not referred to our great disappointment in not obtaining the assistance of the telegraph in the working of the engines, and the greatly increased consumption of coal consequent upon the working the engines unnecessarily, because this evil is now nearly removed; but some further reductions may still be made by using the telegraph by night as well as day, which has not yet been in our power to do, but which I trust will be commenced this week. The Committee to whom this report was made, and who had been also in constant communication with Mr. Brunel, placed the result of their investigation before the Board. The Directors, after carefully considering the information given them, reported as follows:--