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Show Local Men Question Legal Aspects of Proposed Power Deal The legality of Cedar City's participation par-ticipation as a member of the Southwestern, Utah Power Federation Feder-ation will be aired in the courts of the slate as a result of a com-plaint com-plaint filed this week. The complaint, com-plaint, filed by Glen Froyd and M. F. Burgess, Cedar City resi-dents, resi-dents, contests the legal rights of the city on several issues, and asks for clarification of each issue is-sue by the court. The complaint questions the authority of the city to become a stockholder in the Southern Utah Power Company, or to in-vest in-vest public moneys in purchasing purchas-ing stock of the company. It also questions the right of the city to become a member of the Southwest Utah Power Federation, Federa-tion, a domestic cooperative corporation, cor-poration, or to spend public moneys mon-eys for such membership. The complaint charges that the city cannot legally bind Itself for many years to come to purchase all electric power and energy which it shall dispense to cit-Izens, cit-Izens, thus excluding the right of citizens who are taxpayers to approve ap-prove the construction and maintenance main-tenance of municipal generating facilities. The fourth point questions the right of the city to contract to purchase power for many years in the future exclusively from one corporation at rates to be determined de-termined by the board of direct-ors direct-ors of that corporation. The final point listed in the complaint questions the right of i the city to invest public moneys in a private corporation, even .through the payment for power, and also the right of the city to "agree to pay an undetermined And f 1 1 f 1 1 ra rrr 1 1 v. nn . - - -"niiMgriu ouiu rp. gardless of the amount of electric elec-tric energy consumed by It. particularly par-ticularly where guch sum or amount may be fixed from time to time by a board of directors of the seller corporation." It Is understood that Sam Cline of Mllford has been retained &s attorney for the plaintiffs in the complaint against the city. It is difficult to determine Just what effect this suit may have (Continued on Bock Page) LOCAL MEN (Continued from Page One) on the consumation of the Power Federation program. An injunction injunc-tion against further action by Cedar City may be granted until un-til the case is heard. Cedar City officials have signed sign-ed the purchase contract and it was assumed that steps would be taken immediately to get court approval of the purchase of the Southern Utah Power company com-pany holdings. However, it is doubtful if the New York court or the Securities commission would hear the case until the suit filed in the local district court is disposed of. |