The Varley Loop is another piece of test equipment to accurately locate ground faults and short circuits in a multi-conductor cable such as a telephone or wiring cable. From the diagram the Varley Loop is a Murray Loop with an added resistor, R .
In the configuration A above, the ground fault does not affect the null since it is the only ground in the circuit. The null simply measures the total roundtrip cable length resistance, 2RA as:
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