Food MacHinery and Chemical Corporation, a Corporation v. The United States

JONES, Senior Judge.

Taxpayer, Food Machinery and Chemical Corporation (FMC), claims a refund of income tax for the year 1950. 1 Tax payer’s claim is based on an allowance for depletion of phosphate shale deposits on the Fort Hall Indian Reservation near Pocatello, Idaho. Since 1948, FMC, under an agreement with J. R. Simplot, lessee of the deposits, received mined phosphate shale for use in the production of elemental phosphorus at its electric furnaces near Pocatello. FMC paid Simplot to mine the shale and also bore the expense of a 10 percent royalty payment to the Indian mine…