Saunby

The petitioners herein applied for a writ of review wherein they sought to have reviewed and annulled a certain decision and order of the Railroad Commission in a proceeding before said Commission for the readjustment and fixation of the rates to be charged its customers by the Southern California Edison Company, a corporation engaged in the distribution and sale of electric energy for lighting and power throughout a number of the counties in southern California. The facts preceding and attending said application, so far as the same are deemed necessary for the purposes of this decision, are undisputed and are as follows:

Prior to and in the early part of the year 1921 the Railroad Commission undertook and conducted a comprehensive investigation into the properties and operations of the Southern California Edison Company, upon the latter’s application, at the close of which the Commission made its findings with relation to the properties, income and operating expenses of said corporation, among the latter of which items it included certain estimated expenditures for state taxes, and also an amount,of federal income taxes which the corporation had paid and which latter item the…