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m vative because the rate bases used do not reflect present costs of plant and do not include costs “which are usually capitalized such as engineering, etc., increases in income tax rates which are bound to come are excluded, and oper­ating expense estimates do not fully reflect the continuing increase in operating expenses which are being experienced by the Railroad Company and the Water Company. When the basis of comparison above mentioned, that is, the Original Cost basis, is used to test the Commission's decision, but a 6$ rate of return to both the Railroad Company and Water Com­pany is used, the overall error in the Commission's decision as to deficiency in revenues is found to be $79,734.00 (Sched- Vi:/; ule V p. 2). In other words, the true deficiency in revenues ? under the former rates is found to be $104,846.00 instead of $25,112.00. The great error in the overall results of the Com­mission's decision can also be demonstrated by using rate bases which are an average of Investment Cost and Original Cost, as did the Commission, but when the Commission's errors are rectified by: a. including in the rate bases all capital record­ed on the books as of December 31, 1950 plus estimated * capital additions in 1951, at the true bdok cost and at true original cost of such capital. b. restoring to the rate base of the Railroad Com­pany 439.42 acres of land at $100.00 an acre, and rights 1 2 -