This section is through the south end of Pass Creek Canyon, beginning approximately a mile and a half south of Comstock and extending to a point a half mile north of Leona, being 4.6 miles in length. The contract was a joint contract signed by the County Court and State Highway Commission and was awarded to Hall & Soleim of Eugene on September 5, 1917. Work covered by the contract was for grading and macadamizing, culverts and bridges. Due to shortage of labor, poor shipments on macadam rock, and financial difficulties, the contractors were obliged to ask the State Highway Commission to take over the work. On August 20, 1918, after a conference with the County Court and the Contractor's Surety Company, this was done. The work was completed November 30, 1918. The construction details under the State supervision were handled by a State construction engineer, representing the Contractors and Surety Company, and the engineering details by the resident engineer on the work--the latter rendering regular monthly estimates of work done on the unit contract prices, of the original contract. This work complete will cost approximately $80,000.00 of which the County will pay $74,349.72 and the State $5,650.28. The construction of this section was in charge of E. B. Bishop, resident engineer, and F. E. LaPointe, construction superintendent. Grading--Oakland to Yoncalla This work extends from the Calapooya River Bridge at Oakland to a point two miles south of Yoncalla, a total distance of 10.4 miles. A contract for clearing, grading and culverts was awarded the Warren Construction Company, September 5, 1917, being the last of three contracts signed jointly by the County Court and State Highway Commission. This work was completed July 25, 1918, and is an excellent piece of standard construction 24 feet in width. It eliminates the old excessive grade over Rice Hill, and some bad sections just north of Oakland--there being now no grades over 5 per cent. On the completion of the grading the State Highway Commission requested permission Of the Capital Issues Committee to sell bonds, part of which were to cover the rocking of this unit to make it passable for winter. This request was refused on the ground that it was not a necessary war measure. The road will therefore not be passable this winter, but it is expected that the section will be macadamized during the 1919 season. Mr. Robert A. Pratt was resident engineer in charge of the construction. DETAILED EXPENDITURE STATEMENT--GRADING--OAKLAND TO YONCALLA