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orm. The reference figures are similar to those in the preceding diagram, and all conditions are also alike except that a central compensating, or balancing, conductor, PN, is here introduced. This is technically termed the "neutral" wire, and in the discharge of its functions lies the solution of the problem of economical distribution. Theoretically, a three-wire installation is evenly balanced by wiring for an equal number of lamps on both sides. If all these lamps were always lighted, burned, and extinguished simultaneously the central conductor would, in fact, remain neutral, as there would be no current passing through it, except from lamp to lamp. In practice, however, no such perfect conditions can obtain, hence the necessity of the provision for balancing in order to maintain the principle of independent control of each unit. It will be apparent that the arrangement shown in Fig. 2 comprises practically two circuits combined in one system, in which the central conductor, PN, in case of emergency, serves in two capacities--namely, as negative to generator G<1S> or as positive to generator G<2S>, although normally neutral. There are two sides to the system, the positive side being represented by the conductors P and PN, and the negative side by the conductors PN and N. Each side, if considered separately, has a potential of about 110 volts, yet the potential of the two outside conductors, P and N, is 220 volts. The lamps are 110 volts. In practical use the operation of the system is as follows: If all the lamps were lighted the current would flow along P and through each pair of lamps to N, and so back to the source of energy. In this case the balance is preserved and the central wire remains neutral, as no return current flows through it to the source of energy. But let us suppose that one lamp on the positive side is extinguished. None of the other lamps is affected thereby, but the system is immediately thrown out of balance, and on the positive side there is an excess of current to this extent which flows along or through the central conductor and returns to the generator, the central conductor thus becoming the negative of that side of the system for the time being. If the lamp extinguished had been one of those on the negative side of the system results of a similar nature would obtain, except that the central conductor would for the time being become the positive of that side, and the excess of current
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