By 1892 Calgary had reached present-day Seventeenth Avenue, east to the Elbow River and west to Eighth Street, and the first federal census listed the boom town at 3,876 inhabitants. The economic conditions in Calgary began to deteriorate in 1892, as development in the downtown slowed, the streetcar system started in 1889 was put on hold and smaller property owners began to sell. Residents of the now-eight-year-old settlement sought to form a local government of their own. In the first weeks of 1884, James Reilly who was building the Royal Hotel east of the Elbow River circulated 200 handbills announcing a public meeting on January 7, 1884, at the Methodist Church. At the full meeting Reilly advocated for a bridge across the Elbow River and a civic committee to watch over the interests of the public until Calgary could be incorporated. The attendees were enthusiastic about the committee and on the next evening a vote was held to elect the seven members.
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Low oil prices in the 1980s prevented a full economic recovery until the 1990s. Murdoch returned to Calgary on December 27, 1885, only a week before the election to find the town in disarray. E. Marsh brought a charge of corruption against Murdoch and council over irregularities in the voters’ list. Travis found Murdoch and the councillors guilty, disqualifying them from running in the 1886 election, barring them from municipal office for two years, and fining Murdoch $100, and the councillors $20. This was despite the fact Murdoch was visiting Eastern Canada while the alleged tampering was occurring. Travis’ disqualification did not dissuade Calgary voters, and Murdoch defeated his opponent James Reilly by a significant margin in early January to be re-elected as mayor.
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