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by the Commission. An average of the true Investment Cost and true Original Cost rate bases for the year 1951 would be $752,350.00 (Schedule IV, p. 2) and not the average rate base of $460,061.88 found by the Commission. 5. The deduction for retirement reserve is excess­ive for the capital base used. Deficiency in Joint Facility Rents B - The sum of $105,063.72 found by the Commission to be the reasonable joint facility rents to be charged by the Rail­road Company to Water Company is in error, contrary to the evidence, and is insufficient because: 1. The Commission's rate base of $460,061.88 for ^ the water production facilities and the water-bearing lands of the Railroad Company is in error and is low by over $311,000.00 (which is 40$ of the correct rate base of $771,300.00) for the reasons heretofore stated. 2. The depreciation charge of $8,021.24 computed by the Commission and the allowance for taxes, partic­ularly federal income taxes, are insufficient for the reason that the base' upon whioh they are computed is I low and in error; the depreciation allowance is without , foundation in the evidence and was computed upon the depreciated rather than the undepreciated capital base. 3. - The rate cf return of six per cent allowed upon the rate base of the Railroad Company is less than an adequate and reasonable rate of return. -4—