Hecla Mining Co. v. Commissioner
United States Board of Tax Appeals
1. DISCOVERY IN EXISTING MINE. - Held, that a vein of lead-silver ore, first located by petitioner in its mine in December 1913, was not merely the uninterrupted extension of a continuing commercial vein; that the discovered vein was developed by September 30, 1915, to an extent to show that the discovered minerals were of sufficient quantity that they could be separately mined and marketed at a profit; that the value at September 30, 1915, was materially disappropriate to…
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1. DISCOVERY IN EXISTING MINE. - Held, that a vein of lead-silver ore, first located by petitioner in its mine in December 1913, was not merely the uninterrupted extension of a continuing commercial vein; that the discovered vein was developed by September 30, 1915, to an extent to show that the discovered minerals were of sufficient quantity that they could be separately mined and marketed at a profit; that the value at September 30, 1915, was materially disappropriate to cost; and that petitioner is entitled to discovery depletion under the Revenue Act of 1928. Value at the basic date…
1Opinion of the Court
*460OPINION.
ARundell :
The main point in issue in these proceedings is whether or not the petitioner made a statutory discovery of a vein within the Hecla properties after February 28,1913. If it did, it is entitled to depletion deductions upon removal and sale of ore therefrom in the taxable years.
We have found upon consideration of the evidence that there are present in these cases the facts prescribed by statute as constituting a discovery, and we hold that there was a discovery of the Intermediate vein within the meaning of section 114 (b) (2) of the Revenue Act of 1928. There remains on this…
2Cases cited4 opinions
- United States v. AndersonSupreme Court of the United States · 1926
- Von Baumbach v. Sargent Land Co.Supreme Court of the United States · 1917
- Eureka Consol. Min. Co. v. Richmond Min. Co.U.S. Circuit Court for the District of Nevada · 1877
- Iron Silver Mining Co. v. CheesmanSupreme Court of the United States · 1886
3Cited by3 opinions
- Cuba Railroad Company v. United StatesDistrict Court, S.D. New York · 1954
- Albemarle Corporation & Subsidiaries v. United StatesUnited States Court of Federal Claims · 2014
- Hecla Mining Co. v. CommissionerUnited States Board of Tax Appeals · 1937