New York Consolidated Laws, Public Service Law - PBS § 89-g. Reorganization

1. Reorganizations of water-works corporations pursuant to sections ninety-six and ninety-seven of the stock corporation law  1 and such other statutes as may be enacted from time to time shall be subject to the supervision and control of the commission, and no such reorganization shall be had without the authorization of such commission.

2. Upon all such reorganizations the amount of capitalization, including therein all stocks and bonds and other evidences of indebtedness, shall be such as is authorized by the commission, which, in making its determination shall not exceed the fair value of the property involved, taking into consideration its original cost of construction, duplication cost, present condition, earning power at reasonable rates and all other relevant matters and any additional sum or sums as shall be actually paid in cash, provided, however, that the commission may make due allowance for discount of bonds. Any reorganization agreement before it becomes effective shall be amended so that the amount of capitalization shall conform to the amount authorized by the commission.