On August 20, 1917, bids were considered by the State Highway Commission
for the grading of two and one-half miles on the Pacific Highway near
New Era. The most satisfactory proposal received was a cost plus ten per
cent proposal submitted by the Warren Construction Company, and a
contract was entered into with that firm on the cost plus ten per cent
basis.
This work involved the grading of New Era Hill, just south of New Era,
and some heavy rock excavation from New Era north. After the work had
started, it was decided to pave between Oregon City and Canby, and the
contract for this paving let to the Oregon Hassam Paving Company. The
most feasible place to secure the crushed rock necessary for this paving
was from the rock being excavated under the grading contract with the
Warren Construction Company, and the Highway Department entered into an
agreement with the paving company, whereby the state would crush the
rock from a big cut at New Era, and furnish the crushed rock for the
paving upon certain agreed terms, the crushing to be done under the cost
plus contract with the Warren Construction Company.
On this basis the work was carried on by the Warren Construction Company
until March 1, 1918, at which time it was deemed advisable by the
Highway Commission to take the work over and complete it with State
forces.
The total cost of the grading and rock crushing was $66,000.00, and the
amount received for the crushed rock furnished for the paving was
$19,850.00. Clackamas County co-operated with the State on this work,
the total amount paid out of County funds being $15,009.91.
[Illustration: AT THE TOP OF CANEMAH HILL ON THE PACIFIC HIGHWAY IN
CLACKAMAS COUNTY. GRADED AND PAVED IN 1918]