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Show "Bids for Power Holdings Possible"-Parry There Is still the possibility of the Southern Utah Power Co. and the Southern Utah Power Federation Feder-ation getting together on the sale of the power company holdings, hold-ings, according to Mayor Gron-way Gron-way R. Parry, an officer in the Federation. However, according to a court order in New York, the stock of the company has to be distributed distribut-ed to the bondholders of the Washington Gas and Electric Company before August 9. If an agreement Is not reached by that time, on the purchase of the stock, it will be distributed. All bids for the purchase, submitted sub-mitted at a hearing in New York last week, were considered to be J too low for the value of the prop-1 erty. The Cedar City corporation and the REA had been dickering dicker-ing for the stock. According to Mayor Parry, the Federation has finally offered $500,000 for the common stock. The overall offer for preferred and common stock, and all bonded bond-ed indebtedness is $1,778,000. About $300,000 of this would be borne by the Cedar City Corporation, Corp-oration, according to the mayor, In discussions with the trustee of the company in New York last "week, the trustee said that he did not consider the $300,000 figure to be enough for Cedar City to pay. In offering to bid for the dls trlbutlon system along with the REA bid for the rest of the company, com-pany, Cedar, said the mayor, has the understanding that she and the surrounding towns will share with the rest of the cooperatives and not pay any more than the coops for power. The city would derive the same benefits as out lying cooperatives according to Mayor Parry. It is anticipated that the city would get the power from the REA for 1.25 cents per KWH, said the mayor, and then sell it to the people for the same rate as before the last increase, or about 2.5 cents per KWH. If Cedar did go in with the Federation, over a 10 year period. t would pay 1 cent or less per VN according to englnering es-lmates, es-lmates, obtained by the mayor. Apprehension has been ex. pressed by some people and also directors of the Federation, as to what will happen to outlying districts if Cedar City should put in a municipal system. According Ac-cording to the mayor, he was assured as-sured in Washington by an un-lisclosed un-lisclosed source, that all outly- ing areas in Iron and six other southern Utah counties, and two counties In northern Arizona would be amply supplied with power through existing cooperatives coopera-tives and their proposed generating generat-ing plants. Mr. A. F. Hartung, of the Burns and McDonnel Engineering Engineer-ing firm of Kansas City, Mo., is in Cedar City today, to look over the situation, with the idea of immediately constructing a distribution dis-tribution and generating system for Cedar by using local coal. If the city installs a municipal muni-cipal system, it will need a gen-crating gen-crating plant and a standby plant, in addition to having arrangements ar-rangements with adjoining power pow-er companies for interchange of power, according to the mayor. |