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V me the retirement reserve of §120,518.62 which it deducted from the capital base. The opinion does not disclose how this was com­puted, but it definitely appears to be excessive in relation to the size of the capital base used by the Commission. Tables V H - b and VIII of Exhibit B show the retirement reserve deduc­tions made in the Railroad Company. These deductions are based upon the service lives of facilities shown on Table J of Exhibit A. Expressed in percentages these average'slightly less than the 2fo depreciation rate used by the Commission. The figures produced by the Railroad Company show that as of December 31, 1950, the retirement reserve on an Investment Cost capital base of §792,875.00 would have been §91,769.00 and upon an Original Cost Capital base of §863,312.00 would have been §122,418.00. As of the same date the Commission could not have obtained a re­serve of §120,518.62 upon a capital base whose depreciable por­tion is.only §514,855.45 if it has used the 2% depreciation factor which it used in estimating annual operating expense. The Water-Bearing Land and Rights of Way. The Commission properly found that water-bearing lands, at a value of §100.00 an acre, should be included in the Railroad Company rate base but it reduced the acreage used and useful to 240 acres of land, failed to in any way identify the land which it considered to be used or useful and made no allowance whatso­ever for the values of rights of way over Railroad Company land for transmission lines and power lines which are essential to the -35-