The matter of national aid to internal improvements was again brought before Congress in 1816 by Calhoun, who presented a bill providing for the direct construction of roads and canals and the improvement of waterways out of a fund to be created by setting apart the bonus and dividends received by the government from the United States bank. This bill, which was drawn up by Clay, passed through Congress in 1817, but it was vetoed by Madison, who, though favorably disposed toward public works, had inherited from Jefferson a doubt as to the rights of Congress to participate in their construction without a constitutional amendment specifically granting the authority. And Monroe, holding the same opinion, vetoed a bill for the repair of the Cumberland road, and submitted to Congress a long statement of the principles involved in his decision. In the meantime, weary of waiting, New York had succeeded in building the Erie canal. Its success shifted the whole plan of promotion. With credit established abroad, internal improvements were taken up by the states, and for the next two decades transportation interest centers in state funding. It was during this period of struggle for means of transportation facilities adequate to meet the demands of those whose fortunes had been cast in the remote interior that the railroad became the subject of serious economic interest. * * * * * (In subsequent chapters, Messrs. Cleveland & Powell trace the beginnings of the railroad, the physical and financial difficulties that beset them at every turn; the indomitable spirit with which they were projected, promoted and built into every quarter of the Union, until through the investment of billions of private capital the United States has been furnished with the best system of internal transportation in the world. To their pages the reader is referred for the continuation of this most interesting narrative.) FIRST ANNUAL REPORT OF THE CHIEF ENGINEER OF THE PENNSYLVANIA RAILROAD COMPANY June 12, 1848. By J. EDGAR THOMSON. Chief Engineer. ENGINEER DEPARTMENT, PENNSYLVANIA R. R. CO. _Philadelphia, June 12, 1848._ To the President and Directors of the Pennsylvania Railroad Company: GENTLEMEN--I have the honor to communicate to you the following Report of the operations of this Department since it was committed to my charge, now something more than a year.