The Dawson Blues: Reflections on the Disposition of a Capital Funding Agreement

by Dan Davidson

As one who has been following and reporting on the issues which have led to the downfall of Dawson’s City council over the last eight years, it always fascinating to discover how these events are perceived by persons who ought to be able to be in a position to know more about them than I do. I’m thinking here of the

territorial government, which has access to all the documents and commentary from all sides of the issues, and had had the further advantage of having is $800-a-day-man, Mr. André Carrel, look into these matters over the last six months.

And yet, we still read in Hansard speeches like the following, made by Premier Fentie in reply to a question by MLA Steve Cardiff.

“Fentie: To date, the City of Dawson has spent some $10 million plus on a sewage treatment plant and the likes of an arena. To date, we do not have a useable arena in Dawson City — that’s taxpayers’ money, I would remind the member — nor do we have a sewage treatment plant in Dawson city — again, taxpayers’ money. So the issue before us, when it comes to Dawson City, is determining what has happened on behalf of the taxpayer and in the public interest.”

As the cabinet members of the former Liberal government used to be fond of saying: The member is wrong.

What’s wrong with this answer? Well, first off, as Cardiff noted later on, the Capital Funding Agreement signed off between the that Liberal Government and the former Dawson City council was for three projects: a pool, a recreation centre, and a sewage treatment plant.

The pool has been built and has been in use for two full seasons now. Although some caller to a recent CBC open line show recently described it as “inadequate”, and though it has had a few growing pains, it has been in constant use from May through to October each of those years, just as I originally reported that it would be when I wrote about the proposals some years ago. It, and every other pool in the territory, has been closed from time to time each summer due to water quality concerns, one of the legacies of the Walkerton fiasco, but the old, outdoor pool was closed whenever it rained, was open only from late June to mid-August, and existed under a perennial threat of closure by the health department, so I guess we’ve made out okay there.

Onward to the next point.

That arena has been functioning now for two whole hockey seasons, and one Gold Show. It’s true that it’s not finished. Completion of the second floor was deliberately delayed in order to keep it within budget. The arena’s ice surface was, I am told, as good or better than the old one, which was often closed due to enormous cracks in the ice, and all the hockey players I’m teaching seemed to have no complaints.

While there can be little doubt that it hasn’t been built in the best of places in the town for such a facility, its footprint is remarkably similar to the recreation centre which occupied the same ground from 1978 to 2000.

It is true that the facility had to shut down early this spring when the roof seemed unsafe, but the report by an engineering firm selected by the government has already determined that this is either an engineering or construction flaw - and therefore not something the former council would be responsible for. The only reason now why both the arena and the curling rink (where the actual roof problem lies) would not be in use next winter would be if the government, which is now in charge of such matters, failed to pursue the course of action for redress which the former council had already identified.

There never was $10.4 million slated for the construction of a sewer and water plant. Mr. Fentie’s answer appears calculated to make readers and hearers think that some money has gone missing somehow. Mr. Carrel’s report identifies the sum of $5.333,300.00), and calls the amount allocated for this task ridiculous. I have to agree with him on that, and he agreed with me when I quoted him on it in a question at the April 13th meeting here.

What did council do with about $4.3 million? It inaugurated the meter and bleeder program intended to reduce the town’s water use. This was a prerequisite for the construction of the treatment plant which independent studies commissioned by the former Liberal territorial government had confirmed was the one the town had to build to meet its court order. It had the complete plant and all its workings designed down to the ground, which had to be done to prove to the court that it was working on fulfilling the judge’s order.

All of the expenses in this category of the CFA were made with the assistance and approval of territorial officials who sat with Dawson councillors and administrative staff on the Project Management Team since 2001. When Mr. Fentie complains about Dawson’s spending patterns he never mentions that, nor does he quote Carrel’s conclusion that “the Government of Yukon is responsible, and should be held accountable for its administration of the agreement.”

This is another instance in which Mr. Carrel and I see the situation in the same light. He also notes in his report that it will be necessary for the YTG to negotiate another agreement with the town in order to finance the actual construction of such a plant.

Now both Mr. Fentie and Mr. Hart are on record in Hansard over the last fortnight as indicating that this plant will never be built, that it is not an economically viable option for the town. No surprise here. Dawson mayors Peter Jenkins, Art Webster and Glen Everitt have all agreed that we can’t afford to run it. So isn’t the fact that we’ve got detailed plans which now confirm that intuition a good thing? And isn’t it good that we didn’t go ahead and build the plant?

Apparently not. That, of course, is just another of the many mysteries that emerge daily as one reads what I have come to call the Dawson Blues.

“The Blues” are the first draft version of the legislative debates, which eventually become Hansard. As Dawson has been front and centre in so much of the debate lately, it seemed fitting to devote a separate column to comments on those issues.

Dawson Politics Contentious from the Very Beginning

Researched, written and compiled by John Gould

In 1898 or possibly earlier, Dawson residents and business people were agitating to have Dawson incorporated as a city. They were fed up with Ottawa and Regina running things.

If the town was incorporated then the people could elect a mayor and council and maybe then they would have some influence in the operating of their town.

In 1898 J. M Walsh commissioner of the Yukon district of the N.W.T. appointed a Dawson committee of the following citizens; the Officer commanding the N.W.M.P. D. W. Davis, F. C. Wade, H. A. Bliss Doctors Thompson and Richardson. They were given instructions as to their duties.

In 1898 the Territorial council passed the Incorporation Ordinance. The people of Dawson had no opportunity to have any say about the ordinance. Earlier, Governor William Ogilvie (acting until the arrival of Walsh) said the opinion of the people was of no concern. Klondike Nugget, January 18,1898

It wasn’t until 1902 that the Incorporation Ordinance was put into effect In January there was a plebiscite held. The residents could vote to agree or not agree with the ordinance, but it did not matter which way the people voted, it was going into effect whether they agreed with it or not. Klondike Nugget, January 9, 1902

FIRST ELECTION

Election for a Mayor and council was held on February 6,1902. There were 14 for alderman and 2 for mayor, the winners were, for Mayor, Henry C. Macaulay; aldermen were,- James F. MacDonald, Thomas Adair, George Murphy, Peter Vachon and Thomas G. Wison. A few of the locals were so anxious to find out the results of the election they turned in a fire alarm when the firemen arrived all set to fight a fire they asked who won. The firemen saw no humor in the escapade but let it pass without laying charges for turning in the false alarm.

The city had an appropriation of $70,000. From the Territorial Council but at the time of their first meeting on March 3,1902 there was only $17,000. Left, the average cost of running the city was $6,572 per month.

One of the first jobs they did was to number all properties according to a new by law passed by the city council. The city employees put the numbers up, the numbering started at King Street and went north and south.

TAXES by October 28,1902 the tax rate for the city was established at one and one quarter percent, estimated receipts were $121,980.00 f or the year. Taxes on the assessed property of $10,658,440 at 1 1/4 percent would be $133,233 .Dawson Daily News, October 28,1902

Estimated Expenditures 1902 were,-

Street works and property $15,550.00

Police and Health 8,555.00

Fire, Water and Lights 18,000.00

Printing and Stationary 800.00

Bank of Commerce Loan 55,000.00

Contingencies 7,950.00

Estimated receipts

Taxes on $10,658,440.00 $133,230.00

From other sources 1,000.00

Total 134,230.00

Losses that may be from taxes uncollected 12,450.00

The city council of 1902 decided to build a combination fire hall and city headquarters, it was built on Front Street where the Steamer Keno is to day.

GARBAGE BYLAW

The city council of 1902 posted a warning of a new by law governing the disposal of waste, notices were posted around town concerning the disposal of garbage and sewage. The by law was put through to prevent the spreading of disease during ice break up in the spring. The by law provides against dumping garbage on the ice within the city limits, all kinds of refuse and trash is meant by this. The people of Dawson must go out side the city limits to discard refuse of any kind.

PARK

A large park was also planned, all the buildings in the Government property around the Commissioners resident and the Administration building that are not part of a government department must be removed. One of the buildings was the Salvation Army barrack on the corner of 5th Ave. and Church Street. And the first Public School along side the Salvation Army building.

SECOND ELEC TION

1903 Election for city council. Four hopefuls had their name in for Mayor, Robert P. McLennan won the seat for Mayor. 20 put their name in for a chance to be one of the six aldermen, those elected were, F. N. Johnson; James F. MacDonald; George Murphy; Michael Ryan; Abraham LaLande and Dr. Arthur Edwards.

Dr. Sutherland, health officer reported to the council that “The sanitary conditions of the city were greatly improved owing to the improved system of drainage during the past six months.”

COLD WEATHER

During the winter of 1903 there was a cold spell where the temperature went below minus 60F, wood was in short supply and the wood dealers would not go out in that cold of weather it was to hard on the horses. Yukon Sun January 27,1903

THIRD ELECTION

On January 11,1904 a new council was elected, The mayor for 1904 was James F. MacDonald, aldermen were Alexander J. Gillis, William M. Mckay, Thomas Duffern Pattullo (who later became Premier of B.C.) Abraham LaLande, John L. Timmins, Isaac Lusk.

BICYCLE BYLAW

April 1904 the city council passed a law about riding bicycles within the city limits. Every person riding a bicycle or tricycle upon the streets of Dawson shall upon or before overtaking any cart, carriage or another bicycle, tricycle, horse, mule beast of burden any foot passengers must sound a bell or gong loud enough to warn of such bicycle or tricycle. Yukon World, January 9,1904

The salaries of the Mayor and councilmen were set by the amendment to the charter made by the Yukon Council during the summer of 1903. Mayor $2,500.00, aldermen $1,000.00, City Clerk $3,500.00, assistant clerk $2,500.00, City Attorney $1,800.00 Health officer per month $75.00.

DAWSON CHARTER

The city charter came up for discussion in the summer of 1904, a bill looking to the revoking of the Charter was prepared by the petitioners favoring the scheme and presented to the city council and the Yukon council for discussion. This plan was decided on at a meeting of the Yukon council committee on municipal affairs. The people of Dawson were tired of the high taxes they had to pay and not having the say in the running of the city they expected. Dawson Daily News, August 5,1904

PUBLIC MEETING IN ARCTIC BROTHERHOOD HALL

A public notice was given to the ratepayers of the city under Chapter 16 of the ordinance of the year 1904. “An ordinance for a plebiscite respecting the Dawson City Charter” That the vote to determine whether the majority of the ratepayers are for or against the revoking the charter. The voting will be taken at the Macaulay building 307 south, first avenue the 13th day of September 1904, 9 AM to 5 PM.

The first public meeting was held on September 7 in the A.B. Hall to inform the people of Dawson the reason and why the plebiscite was being taken. Alderman Pattullo and alderman Timmins were at the meeting. At this meeting an injunction was asked for regarding the revoking of the charter but Judge Craig refused to grant the injunction. Yukon World, September 8, 1904

DISCHARGING THE CITY STAFF

The city council held a short meeting on September 7th at this meeting they discharged a number of the city workers. The city clerk . E. Ward Smith, city treasurer, city assessor, city collector, and city licence inspector all the same person, as well as the emolument of that most important functionary the pound keeper. They then question the City Clerk, E. Ward Smith who had taken on the position of returning officer for the plebiscite, he was hired by Commissioner Congdon.

At one point the Congdon machine took over the city office chasing every one out changing the locks on the doors and the changing the combination of the safe. Alderman Pattullo, as he said “clambered through a window, stating that Ward Smith the ex city clerk was in there and never challenged him.” He took over the office for the city changing the locks and the combination of the safe.

TAXPAYERS REVOKE CHARTER

Three polling booths were set up in the Macaulay Building, the results of the voting was 289 in favor and 92 against. It was thought that the city council would hold office until the end of their term the end of 1904 but that was not so Commissioner Congdon issued a proclamation setting forth the results of the voting at that moment the council was out.

E. Ward Smith stayed on as city clerk under the Territorial government for the new committee that would run the town of Dawson.

A TRIBUTE to the popularity of the Government is the fact that the opposition press has not one word to say antagonistic to the World, the Government organ. One would naturally assume that any animosity to the Federal Government or local administration would find expression through the columns of the opposition press directed against the arguments of the paper supporting the government, but not a word is said.

CITIZENS of Dawson will be able to judge soon of the advantage which will accrue to them by reason of the city being in the hands of the Territorial Government. It was a very wise and prudent move of the men who pay the taxes to have the money spent by the comptroller. As a rule men of means are wise and prudent, and when they must repose trust they leave it with wise and prudent men. Yukon World, September 18,1904

The following item appeared in the Yukon Sun of September 25,1904, after the plebiscite that revoked of the Dawson City Charter.

YUKON MENACED

By Reign of Misrule at Dawson ­ Prominent Liberals make Grave charges Against the Congdon Administration ­ Dawson City Charter lost to her by illegal method­Canada at large Appealed to by the miners.

The following issues of false statements appears in the News Advertiser, a Conservative Paper in Vancouver. The letter accompanying this explains itself. The business men of Dawson should now take steps to repudiate the unwarranted act of the Sun Man who has insulted the people of the district and grossly misrepresented the conditions.

Dawson Y.T., September 13,1904 -- After a shameless exhibition of the most barefaced jobbery ever manifested in Canada, after a dictum of a superior court judge that the election, under the circumstances, would not be legal; after a united protest by press and people, the local administration of the Yukon Territory today stole from the people of Dawson their city Charter, in an election forced upon the people by the Commissioner of the Territory. By legal issuance of voting certificates to people who had no right to vote, by disfranchisement of several aldermen the city attorney and the majority of taxpayers, the Congdon government was able to appropriate the city charter and throw the city government into the hands of the territory, by a vote of 288 to 92 a total of 880 votes cast out of 3,440 taxpayers.

At the request of one percent of the taxpayers of the city, the Congdon administration forced through the Yukon Council a bill to compel the city to a plebiscite to decide if it wanted to retain its charter. The commissioner published the notice on Sunday placing the fate of the election entirely in the city clerks hands. The vote was by certificates, issued by the clerk. No penalty attaching to illegal issuance.

Satisfied of irregularities, the city authorities on Tuesday, discharged the city clerk.

On Wednesday the assessment roll on which the certificates were to be issued , was missing. On Thursday the Mayor, who is under Congdon dictation, returned the roll.

On Wednesday night, the ex-city clerk under the advise of Mr. Congdon moved into the city hall took possession, by aid of the police, changed the combination of the safe, declared the city council discharged, and the city before the vote, in the hands of Commissioner Congdon.

The city council on Saturday night asked the superior court to issue an injunction restraining the election. The case was argued yesterday, the judge rendering a decision later last night. The Judges decision was that the council had the right to discharge the city clerk, and the Mayor had no right to replace him. At the time the clerk issued the certificates for voter, he was neither the clerk dejure nor defacto, and that the certificates were invalid. That if the judge could be certain as to his power to issue and injunction, he would restrain the issuance of the certificates, but the time to decide was too short, that he could not make up his mind . That he was so empowered that the commissioner had discretion as to proclaiming the results of the election, and the judge would have to place it in his hands to decide whether the results should be proclaimed under the circumstances, the results resting with the commissioner.

Mr. Congdon went ahead with the election in the face of the courts, the press and the public. The Government officials had charge of the ballot box, and the government searched the town for voters favorable to them. After declaring that the date of issuance of certificates closed on Saturday noon, certificates were issued to people who had not right to vote all day when the voting was going on. Through the abuse of power, oppression and intimidation of the Congdon administration a reign of terror is on the Yukon. Fully four thousand citizens have left the territory in the last three months never to return. Business is being paralyzed and the future of the camp killed by the commissioner, and his confederates in their attempt to build up a political machine here that will return Mr. Congdon to parliament. The town and Territory are now in his hands, and no help can be expected from him.

Liberals have appealed time without number to Ottawa from this desperate condition, but without success. Business men will be ruined because they will not swallow the rottenness of the local government, and unless the press of Canada comes to the help of long suffering Yukon, the richest camp will be dead in another year.

There are not enough miners in the Yukon to produce half of this years output, and next year they will never return, for under the Congdon administration the miner cannot collect wages, and the superior court judge says that under the ruling of the courts, miners of mine owners rights the government is bound to respect.

Citizens, business men and government employees today subscribed over $100.00 to wire conditions to the press of Canada. We need your help.

W. F. Thompson

Editor, Yukon Sun (Liberal Party Organ)

Nothing was found in the Dawson Papers of that time as to what the results of this letter was.