New Silver Bell Mining Co v. County of Lewis & Clark

I think the opinion prepared by Mr. Justice Davis is erroneous in holding that the payments made to plaintiff constitute royalties taxable as net proceeds.

A copy of the agreement between plaintiff and Swansea Mines, Inc. was attached to the complaint and made a part of it. By its terms Swansea Mines, Inc. was given the exclusive right to purchase the mining claims described. The purchase price was fixed by the agreement at $45,000 of which $5,481.31 had already been paid when the agreement was made, leaving a balance due of $39,518.69.

Swansea Mines, Inc. was to make payments to the plaintiff…