The Commission has held fifty-one meetings for the transaction of its business. The State highway system as outlined in the law has been adopted and the work of the biennium confined to the various units of this system. Specifications covering hard surface pavement have been prepared by the State Highway Engineer and adopted by the Commission, as well as specifications for grading and bridge construction which have been acceptable to the United States Office of Public Roads and are used on all Federal Aid Projects in the State. Surveys have been made on State highway routes to determine the best and most economical location, at the request of the counties, and also several important bridges have been designed and constructed under the supervision of the Department. Engineers have been furnished at State expense to supervise construction work being done by the counties on State highways in several instances. The program for 1917 depending upon the passage of the $6,000,000.00 Bonding Act, the working season remaining after ratification by the voters was short, but engineering parties were sent out and the first contract under this act was let on June 30, 1917. All except the smaller contracts entered into were carried over into the 1918 working season. No new paving or grading contracts of any magnitude have been awarded this year due to the rising costs of material and scarcity of labor. There was early seen the necessity of conserving labor and capital in the national emergency and for that reason the Commission has been unable to give aid to many meritorious projects submitted by various sections of the State. At a meeting held on June 25, the Commission went on record, as a war measure, to devote its resources to the completion of the two trunk line highways, the Columbia River Highway and the Pacific Highway, completing projects under construction, temporary surfacing to keep trunk highways open or roads to develop resources which are an aid in the prosecution of the war. Notwithstanding the mandatory nature of the State law which created the Commission and provides funds for work under it, the Commission believes this course was warranted and that its action will be supported. Due to the uncertainty of materials, supplies, labor conditions, etc., contractors have been unable to make satisfactory bids and on several occasions no satisfactory bids being received, the Commission undertook to do the work by day labor, in each case effecting a saving under the low bid. In a few cases, either no bids being received or the ones received being considered excessive, work has been let on the cost plus basis with definite cost limit set, beyond which no percentage would be paid. Three of these force account jobs have later been taken over by the Commission, as it was felt that the work could be handled more economically with its own forces.