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12 of the Union Pacific Railroad. The California Commission uniformly so treats individual operating properties of a consolidated corporate system. There should he a community of interest between the customers before a consolidated tax return and rate of return for the system as a whole is made use of. That at least is my understanding of the situation, and it appears aoufcd and reasonable from point of view of fair treatment of the customers served. Revised Customer Water Rates$ When the percentage increase in gross revenue has been dedided upon, then the schedule of new flat rates should be worked out. It is suggested that Mr* Folger *s office prepare a fairly comprehensive summary of customer billing for January, I960, and price these out at present rates. We can then apply the proposed rates to the same billings under to determine the effect of the proposed rates. I would then suggest that these proposed rates be made available to Mr. Folger, so that we may have the benefit of his experience and judgment •