§ 89-g. Reorganization. 1. Reorganizations of water-works
corporations pursuant to sections ninety-six and ninety-seven of the
stock corporation law 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.