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case should be on the 1951 year end capital since the pre­scribed rates went into effect on September 1, 1951. The en­tire. disregard of 1951 capital additions by the Commission is arbitrary and contrary to the evidence in the record. True Original Cost Ignored. In discussing the Railroad Company rate base, we have pointed out that the Commission did not use the true original cost of the plant in fixing the Railroad Company rate base and that it gave no weight at all to present value of plant. The same thing is true with respect to the rate base of the Water Company fixed by the Commission. We will not repeat here all that was said in connection with the Rail­road rate base. However, we want to emphasize the fact that the very minimum the Commission should have found was a rate base founded on true Original Cost. A more fair and proper rate base under present conditions would have been one even higher and which gave weight to present day costs. In any event, if the Commission resorts to Original Cost in fixing a rate base, either by averaging it with another base or using it alone, it should use the true Original Cost figures for the Water Company and not a hypothetical Original Cost de­rived by a mathematical formula based on facts. The Commis­sion should find that an Original Cost rate base for the year 1951 is not less than $757,100 as shown in Exhibit S. Deduction for Retirement Reserve In deducting the retirement reserve account of -57-