HOROWITZ, J.
This is a declaratory judgment action brought by the Scott Paper Company to determine the validity and effect of two contracts between the Coos Bay Pulp Corporation, the paper company's predecessor in interest, and the City of Anacortes. The principal question raised is one of statutory construction, that is, the power of the City to bind itself by contract for the sale of its water, where the contracts act as security for the issuance of municipal water...
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