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P.S. COMM. v. JAMAICA WATER SUPPLY

54 A.D.2d 10 (1976)

In the Matter of The Public Service Commission of the State of New York, Appellant, v. Jamaica Water Supply Company et al., Respondents

Appellate Division of the Supreme Court of the State of New York, Third Department.

August 5, 1976

Attorney(s) appearing for the Case

Peter H. Schiff (Charles R. Gibson of counsel), for appellant.

Meyer, English & Cianciulli, P. C. (Bernard S. Meyer of counsel), for respondents.

W. Bernard Richland (John C. Brennan and L. Kevin Sheridan of counsel), for City of New York, amicus curiae.

LARKIN and REYNOLDS, JJ., concur with HERLIHY, J.; SWEENEY, J. P., and MAIN, J., dissent and vote to affirm in an opinion by SWEENEY, J. P.

HERLIHY, J.

Respondent Jamaica Water Supply Company (hereinafter Jamaica) is a waterworks corporation 96% of whose common stock is owned by respondent Welsbach Corporation. By orders of February 27 and 28, 1974 and an amended order of March 26, 1974 issued by the Public Service Commission, Jamaica was prohibited from declaring or paying dividends on its common stock. The commission found that it had accumulated...

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