To the Public.

    Read, approved and ordered published by the council at the meeting, January 7, 1913.
        Medford, Ore., Jan. 7, 1913,
        To the Common Council of the City of Medford, Oregon
    Gentlemen: section 14 of the charter of the city of Medford requires the mayor to make a written statement of the condition of all of the affairs of the city and to recommend such measures for the government and improvement thereof as he may deem expedient at the last meeting of the council each year, before the annual election. I propose on this occasion, which practically closes my four years' work as mayor of Medford, [to] outline briefly the accomplishments of these four busy and important years in the history of this city.
    When I became mayor in January, 1909, Medford was a village. It had no adequate water system, no paved streets, excepting a few blocks on Main Street; only the beginning of a sewerage system, and excepting in the center of the city, very little sidewalk. The population of the city was about 5,000, which entitled it to free mail delivery, but the United States postal authorities had refused to institute free delivery here because of the lack of sidewalks and a proper system of house numbering. One of the first matters to which the new administration turned its attention was to secure the installation of sufficient sidewalks and to institute a system of house numbering to satisfy the federal authorities and secure free mail delivery in Medford. This was accomplished in the summer of 1909.
    A much more important and critical situation confronted the new administration with reference to our water works system. The pressing need for an adequate supply of pure water in the city had led the preceding administration in its closing days to award a contract for building a $300,000.00 gravity system consisting of a pipeline from Little Butte Creek to Medford, a distance of twenty-three miles, without first securing any of the right-of-way therefor. When we came into office we found that the work of installing the system was about to commence, and that the final line of location for the pipeline had not yet been completed by the surveyors. The pipeline passed through a well-settled section, much of it in orchard, and it was imperatively necessary that we immediately go about the work of securing rights of way. This work was undertaken by the special water committee of the council, whose members laid aside their private business and concerns and devoted practically all their time to the work, driving day after day and many times far into the night, through rain and mud. The work accomplished by these men has never been adequately appreciated by the people of this city. So successful were their efforts that every right of way excepting one was secured without delay, and in most cases without payment of money. The total cost of the right of way, with the exception of one piece, of which I shall speak presently, was required for less than $25.00 per mile.
    The pipeline, however, ran through the ranch of M. F. Hanley for a distance of more than two miles, and the city found itself unable to secure, by negotiation, this portion of the right of way. It developed that the previous mayor and council had entered into a contract with Mr. Hanley for the purchase of a water right and a right of way for a pipeline for $25,000.00 and that they had afterward, for reasons which appeared sufficient to them, repudiated this contract and refused to carry it out and had bought their water supply elsewhere. When Mr. Hanley was approached for a right of way, he insisted that the city secure its right of way by carrying out its contract and paying him the $25,000.00. As the city had already purchased and paid for a sufficient supply of water elsewhere, this of course was impracticable. The city having offered Mr. Hanley $2,000.00 for the right of way and the offer having been refused, the matter was taken into the courts. Protracted litigation followed, accompanied by many delays and disappointments. After almost a year had elapsed, Mr. Hanley consented to accept the $2000.00 and give the right of way, and in the summer of 1910 the system was completed. In the meantime, however, and by July 1909, we had succeeded in getting the Little Butte Creek water into the city, by carrying it in an open ditch to a point below the Hanley ranch and from there taking it into the city pipeline.
    The completion of the gravity system did not solve the problem of furnishing Medford with an adequate supply of pure water. On the contrary, it only brought the situation to a more critical stage. The city had flowing into its reservoir each day more than four million gallons of mountain water, but it had no distributing system with which to carry it to the people of the city. At this time there were in the city only about seven miles of distributing mains, covering less than a quarter of the area of the city. Without an extensive distributing system it was not only impossible to furnish water to the people, but also impossible to realize revenue from the sale of the water to help take care of the interest on the $300,000.00 which the gravity system had cost, and this charge threatened to become a heavy burden upon the taxpayers of the city. Moreover the credit of the city had been taxed almost to its limits to secure the money to build the gravity system, and it was clearly impossible to sell the general obligation bonds of the city in amounts sufficient to provide means for building a sufficient distributing system.
    In this contingency, it was determined that the best course would be to submit to the people an amendment to the charter authorizing the assessment against abutting property the cost of installing distributing mains, these assessments to be made payable in ten annual installments and the city to have authority to issue water main bonds of the city which should be payable from the proceeds of the system as the same were collected. This amendment was approved by the people of the city, and a way was thus provided for beginning the work of installing water mains.
    There was, however, one feature in this proposed plan which operated most unjustly. The city had already issued general fund bonds for $150,000.00 and had used the proceeds in building the portion of the distributing system which had already been installed. These bonds were a burden on all of the property of the city. If the property owner having no water main was now called upon to pay for the main in front of his premises, the result would be that he would, in fact, pay for his own main and also help pay for the main of his more fortunate neighbor, in front of whose premises the main had been previously installed. It was therefore decided to issue to each property owner paying an installment on a water main assessment a certificate which would be good for the amount thereof in payment for water to be used on his premises. In this way the payment of the water main assessment becomes in reality merely a payment in advance for water to be used on the premises and the cost of the distributing system is in fact paid by the surplus water of the city, which would otherwise have gone to waste. This plan has proved extremely popular and successful, and under it the city has built about twenty miles of water mains covering all parts of the city at a cost of almost $300,000.00, and the necessary money has been readily procured. The result is that the receipts of the water department have gone up by leaps and bounds. At the present time the cash receipts of the water system are more than $30,000.00 per annum, and in addition more than $6000.00 of water per annum is paid with certificates issued on account of payments on water main assessments. Water rentals in the city of Medford are as low as the average of two hundred cities in the United States concerning which we have the data. The supply allowed to users is at the present time practically unlimited, all rates being based on unlimited service and no meters being used. It is probable, however, that in the course of a few years, as the city grows, it will be found necessary to install meters and measure the water furnished to water users. The experience of other cities has been that this method has resulted in much more careful and economical use of water by water users, and greatly increases the number of users who can be furnished water from a given supply.
    Hand in hand with the installation of an adequate distributing system for our water has gone the work of installing an adequate sewerage system. This work was absolutely essential to the health and welfare of the city, and it has been carried forward with energy by the city during the past four years. The preceding administration, realizing the urgent necessity for this work, had constructed on Riverside Avenue, during the fall and winter of 1908, a trunk sewer at a cost of about $20,000.00, but had not paid for the same nor made any provisions for raising the money therefor. The work of finding a way to pay for this trunk sewer was bequeathed as a legacy to the present administration. The larger part of this was paid by careful economy and by saving, for this purpose, a portion of the money levied for the general expenses of the city.
    In addition the city has, during the past four years, constructed more than twenty miles of sanitary sewer covering most of the city. There have also been constructed storm sewers to carry off the flood water from the streets during the rainy season at a cost of more than $23,282.15. The sewers which have been built have been placed at a sufficient depth to drain basements and are of adequate size to meet not only present requirements, but the requirements which are likely to exist for a considerable period of the future.
    Another important work which was immediately undertaken was the paving of the streets of the city.
    In the summer of 1908 contracts had been let for the paving of a few blocks on Main Street with bitulithic pavement, and a part of the pavement had been laid. During the summer of 1909 the work on Main Street was completed and Oakdale Avenue was paved. A contract was also let for paving West Main Street, but the work was not carried to completion. It became evident that during the season of 1910 there would be a large demand from the property owners for paving. The cost of the bitulithic pavement had averaged about $3.50 per yard, and it was determined if possible to secure a satisfactory pavement at a lower price. Accordingly the mayor and council in the spring of 1910 took steps to ascertain just what amount of paving would be wanted by property owners during that season. The majority of the property owners on a large number of streets asked to have their streets paved, and the city having gotten together a large amount of work it was determined that the mayor and a committee of the council should go to California and elsewhere to interview paving contractors, examine their work and attempt to secure proposals from them for doing this work. A large number of paving contractors were interviewed, and when bids were called for, a considerable number of propositions were submitted which resulted in a large saving to the city. The mayor and council, however, were not satisfied that the very lowest price obtainable had been secured, and accordingly all bids were rejected and a new campaign was entered upon to secure still other contractors to bid and if possible still lower offers. At the second bidding, the Clark-Henery Construction Company submitted a proposition which the mayor and council considered extremely reasonable and which meant a reduction from prices paid of over thirty percent. Their work had been examined and found to be first class in every respect, and the price at which they offered to lay the paving was considerably lower than any paving of similar character had ever been done in the state of Oregon. In fact, the price bid for this company was substantially lower than the city of Portland was paying for work of the same character, although the cost of freight on the material entering into the pavement from Portland to Medford is between 30 and 40 cents per yard. Accordingly a large contract was given to the Clark-Henery Construction Co., and as other property from time to time petitioned for paving in front of their property from time to time additional contracts have been let to the company on substantially the same basis as the original contract. The result is that more than eighteen miles of street in the city of Medford have been paved. Making Medford the best paved city of its size in the country. Every yard of this paving has been carefully inspected, and I feel warranted in saying that nowhere has there ever been laid so large an amount of paving of a more uniformly high quality and, considering all the conditions, at a more reasonable cost. So far as I know, there is not, in the city of Medford, a defective yard of their paving. Further proof that the price at which we have secured this paving is reasonable and low is that practically all the other cities of western Oregon have taken advantage of the presence of the Clark-Henery Construction Company in this section and have awarded them their paving work. In fact, it is not too much to say that the bringing of the Clark-Henery construction Company into the paving work in western Oregon was the means of breaking the paving combination [i.e., monopoly] which previously existed and not only saved more than $200,000.00 to the city of Medford, but also saved the other cities of western Oregon large amounts as well. The city has never attempted in any way to prevent property owners from selecting, if they chose, any other form of pavement, nor from securing contractors to make better propositions if they were able to do so. In one instance, the property owners on one of the streets undertook to carry on the paving themselves and awarded a contract to another firm on what seemed to them to be more advantageous terms. The result, however, was that the contractors ascended before fairly getting into the work, leaving behind them a large number of creditors, and the property owners came to the city, asking it to take over the matter of paving the street and to let the contract to the Clark-Henery Construction Company, which was done.
    The work of the mayor and council during the past four years has been marked with uniform harmony and unfailing spirit of cooperation. It has been the constant and earnest effort of every man connected with the government of the city to give the city a careful, economical business administration of city affairs. This fact has been reflected in the moderate expenditures of the city during this administration and the consequent low tax rate. In spite of the fact that Medford has progressed during the last four years more rapidly than any of the smallest cities of Oregon, the rate of taxation here has been the lowest of any city in the state. The tax levy for city purposes for the year 1910 was 8 mills; for 1911, 9½ mills, and for the year 1912, 9.9 mills.
    In this amount has been included not only the money necessary for running the city, but also many thousands of dollars for other purposes, among which have been the cost of building a new bridge across Bear Creek at Jackson Street; the cost of installing the storm sewers; of building a new septic tank; the new market building and for laying the principal portion of the cost of the trunk sewer on Riverside Avenue.
    The city has at no time during the past four years been in default in the payment of its general fund warrants, there having always been on hand, in the city treasury, ample funds to meet in cash every obligation of the city.
    It has been my earnest endeavor to give the people of this city an administration of the police department [omission] and particularly with respect to the liquor traffic, which would meet the approval and wishes of the majority of the people of the city.
    I have endeavored to fairly and intelligently enforce the laws of the state of Oregon and the ordinances of the city of Medford in every particular. The saloons have been closed promptly at the hour provided for by ordinance, constant watch has been kept to see that liquors were not sold to minors and that they were not allowed to be in the saloons. Needless to say there have been violations of the law. This is inevitable. The laws against larceny, burglary and even murder have at times been violated in the city, but such violations as have occurred in the liquor laws have occurred despite the vigilance of the present administration and not because of any laxity therein.
    The population of Medford has doubled in the last four years, but believing that it is for the best interest of the city that the number of saloons should be kept small so that every man in the business can make a living profit without resorting to questionable practices and law violations that then everybody in the business should be held to a strict compliance with the laws, we have not increased the number of liquor licenses in the city except to give bars to the two first-class hotels which have been erected during that period. In fact, there are in the city, aside from these two hotel bars, one less saloon that there was four years ago. In view of the fact that the population has so greatly increased, while the number of saloons has been held stationary, we considered that we might fairly raise the price of liquor licenses and decrease the hours during which the saloons were permitted to be open. Accordingly the price of license was increased from $800.00 to $1000.00, and the closing hour was made one hour earlier.
    I am aware that many good people would have liked to see still more radical action taken in this respect, but it seems to me that it is a sufficient answer to say that under the initiative and referendum these people are at liberty to propose at any election an ordinance putting in effect their ideas, and if the same had met with the approval of a majority of the voters of the city, I would have been diligent to carry into effect the provisions of any such ordinance. In this matter, as in all others, I am a firm believer in the principle that the laws should reflect the will of the people, and so long as the initiative and referendum is open to the people, no one can rightly complain because laws are not passed to suit their particular ideas. So long as their public servants faithfully endeavor to support and enforce the laws as they exist.
    During the four years that I have been mayor of Medford, and notwithstanding the great amount of public improvement of all kinds that have been carried on, not one dollar has been recovered against the city for damages arising out of personal injury, either to persons or property, and no amount has been paid out by way of compromise for any such matters except in one instance, and that amount of this payment was only $200. I submit that this speaks well for the care with which the work in this city has been carried on.
    When I became mayor, I found a dispute of long standing between the city of Medford and the local light company. It appears that in 1905, the city and the light company had entered into a contract whereby the light company agreed to furnish the city power for lighting and pumping at 1¼¢ per hour. When in 1907 the city turned its lighting plant over to the electric company under a franchise wherein 4¢ per kilowatt hour was fixed as the minimum charge which the company was required to make for electric power in the city, the company immediately raised the claim that this franchise operated to abrogate the old contract fixing the rate of 1¼¢ per kilowatt hour and authorized the company to charge the city for power furnished thereafter at the rate of 4¢ per per kilowatt hour as fixed by the franchise. The company presented to the city each month its bills based on the 4¢ rate, which the city refused to pay, but instead ordered warrants drawn at the 1¼¢ rate. The company in retaliation refused to pay the 5 percent on its gross earnings to the city as required by the franchise, and at the same time I became mayor this practice had gone on until the amount disputed exceeded $7000.00. By taking a firm attitude in this matter and threatening immediate litigation, we were able to settle this controversy on the basis of the city's claim. We also became convinced, upon investigation, that the charge of 25¢ made to each of the users of electricity for each month, as a meter charge, was illegal and contrary to the terms of its charter. We accordingly advised all property owners that they were under no obligations to pay this charge and offered to conduct an injunction suit in case the company should threaten to shut off the supply of electricity from any consumer by reason of such refusal. The company, however, refused to permit the issue to be raised in this manner by avoiding all threats to shut off the electricity from those who refused to pay the meter charge. While the matter stood in this shape, the management of the company changed hands, and the new officials, recognizing the justice of the city's contention in this respect, voluntarily abandoned the practice of making a charge for meter rentals, which has resulted in a saving to the people of the city of several thousand dollars per year.
    On June 6th of the year of 1912, the electric company, acting under the provisions of its franchise, tendered the city $20,000 by virtue of which it claimed to be released from all liability to further pay percent[age] of its gross earnings to the city. While there is some question to the validity of the franchise of this company, in view of the fact that it was passed and approved by the voters of the city after a thorough discussion and general understanding of the matter and in view of the further fact that the company, acting under the franchise in good faith, has made large expenditures, I believe that it would be unjust and unwise to question the validity of the franchise and that the tender made by the company be accepted by the city and all claim to the further payment of 5 percent abandoned. I do, however, believe that the city is entitled to better rates on its street lighting than it receives at the present time, and that perhaps the people of the city should receive a lower rate for commercial lighting. This is a matter which should be taken up by the next administration and thoroughly investigated. Under the new Public Utility Commission law of Oregon, matters such as this can be referred to the commission and a decision had thereon. This is one of the first matters which should receive attention by the next administration.
    The present administration has been of the opinion that the facilities for crossing Bear Creek should be improved, and two years ago it was decided that a new bridge should be constructed across the creek at Jackson Street. In order to accomplish this result without increasing the indebtedness of the city, a tax of one mill was included in the general fund levy for the years of 1910 and 1911. A new and better bridge at Main Street was also a great necessity. The charter of the city of Medford placed upon the county the obligation of building this latter bridge, and in order to induce the county to build the city a new and substantial bridge at this place, negotiations were entered upon, and the city finally agreed to pay $13,500.00 for the old bridge at this point [on Main Street], the same to be applied toward the cost of a new bridge. This proposition having been accepted, the old bridge was taken down and replaced at Jackson Street and the county awarded a contract for the building of a handsome new bridge at Main Street. The litigation which followed between certain taxpayers of the county and the county officials and contractor is familiar to everyone. It is sufficient to state that the contention of the city was sustained by the highest court and that the new bridge across Bear Creek at Main Street is nearing completion, and the old bridge has already been taken down and replaced at Jackson Street. The cost of the purchase of the old bridge was paid by a bond issue, but the cost of tearing it down and rebuilding it, amounting to nearly $6000.00, was paid by the city out of its tax moneys. The balance of the money realized from the extra tax for the bridge was used by the city in paying for other necessary expenses such as the building of a new septic tank. This the city had a perfect right to do for the reason that the charter does not contemplate the making of levies for particular purposes, and under the charter there are but three funds for the city: Street and road fund; the debt-paying fund; and the general fund, from which all other expenditures are paid. While for convenience the general fund has been divided up and in levying it different amounts are calculated for different purposes, in contemplation of law, the general fund levies are all one levy and the moneys realized therefrom may lawfully be used by the city in such portions as are found expedient for the different needs of the city.
    During the past year the city managed to save from its current funds sufficient money to erect a public market building on Riverside Avenue and to defray the necessary expenses of maintaining and operating the same. I feel justified in saying that this public market has resulted in a great benefit to the people of the city in reducing the cost of living, and I earnestly urge that it be supported and encouraged in every possible way by the next administration.
    There have been other accomplishments during the past four years, the importance of which would deserve extended comment were it not that this report is already sufficiently long to try the patience of the public. During the past year the public library of the city has been housed in a fine new building, and ample provisions have been made for its maintenance in a manner which will make it a credit to the city. In the recent tax levy was included an appropriation of about $4000.00 to defray the expenses of this institution during the coming year and provide a fund for new books.
    The growth of the city of Medford and the erection of a considerable number of new buildings along modern and more metropolitan lines has rendered necessary more modern and adequate fire protection. Accordingly, during the last year a paid fire department was instituted in the city, and I feel warranted in stating that this department, with the assistance of the splendid water supply of the city and the modern equipment which has been purchased for it, will be found capable of affording the city first-class fire protection. This move has also added several thousand dollars each year to the necessary expenses of the city.
    The growth of the city also seemed to render desirous, if not necessary, that additional safeguards be thrown about our elections in order to remove the danger, which always exists in larger communities, of fraudulent voting. Accordingly, we submitted to the legal voters of the city, about a year ago, an amendment to the charter requiring the voters to be registered for our annual city election. This provision of the charter was in force at the last annual election and worked satisfactorily.
    In conclusion, permit me to say that I feel much pride in the city of Medford and in the work that has been done during the past four years to make it the most modern and up-to-date city of its size in the United States.
    While I believe it can be truthfully said that in carrying on the extensive work of improving no money has been wasted, and the work has been done for the lowest possible price. Still it is nevertheless true that a large amount of money has been expended and a heavy indebtedness has been contracted. I firmly believe that the experience of the future will justify the wisdom of these expenditures. But nevertheless it must be recognized that the present burden on many of our citizens is heavy. In my judgment, it should be the aim of the next administration to do everything possible to lighten this burden. Rigid economy in every department should be practiced and considerable forbearance extended to those taxpayers and property owners who manifest a disposition to do their best to meet their obligations to the city. In this connection, I venture to call attention to the fact that the outstanding assessments due the city for paving, water, sewer and water mains, when collected, are paid out in redeeming the outstanding improvement and water main bonds of the city. While these bonds are payable at any time, they are not due for ten years from the date of their issuance, although the interest thereon must be paid annually. It is a serious question whether it would not be wise during the present period of depression and stringency, to permit property owners who are unable to meet the installments falling due on these assessments, to pay the interest thereon thereby providing a fund for the payment of the interest on the bonds and grant to them an extension in making payment on the principal of these assessments. This can be done without inconvenience to the city and it would result in leaving in the community a considerable amount of money which is needed for conducting of business. It might be that a small charge should be made in case of granting of any such extension, to cover the cost of the additional clerical work.
    The fact that rigid economy is necessary during the next year or two does not mean that the progress and improvement of the city should stop. There is still much work to be done in Medford in making the city a beautiful and more desirable place in which to live. The city occupies the position of the building on which the work of the carpenters and the plumbers has been completed. The decorating and beautifying still remains to be done. But this is work which can now be done largely with our own labor and without expenditure of any great amount of money. Efforts should be made to improve the parking strips on our streets. A crusade should be waged against weeds, and much similar work can be done by our labor in the way of beautifying and finishing the city.
        Respectfully,
                W. H. CANON.
Medford Mail Tribune, January 9, 1913, page 3