Hoban v. Viley, Collector of Internal Revenue. Hoban v. Viley, Collector of Internal Revenue

Questions concerning the interpretation of section 23(m) of the Internal Revenue Code, 26 U.S.C.A., Internal Revenue Code, § 23 (m), form the basis of these appeals. The pertinent part of this section is as follows: “In the case of mines, oil and gas wells, other natural deposits, and timber, a reasonable allowance for depletion * * =M>

The facts from which the controversy arose are not in dispute, and, for present purposes, may he shortly stated.

In the year 1906, Hecla Mining Company, Federal Mining and Smelting Company, and Hercules Mining Company owned mines and concentration mills on Canyon Creek several miles above the City of Wallace, Idaho.

Tailings from the mills of these properties, and from the properties of other mining operations had been diverted into and had flowed down Canyon Creek for many years. Such tailings contained minerals which were not recoverable at the time. Subsequent to 1928, due to advances in the science of metallurgy, tailings deposited contained no recoverable mineral content.

In 1907 the three companies acquired land down-stream from their respective workings upon which a dam was erected to impound tailings discharged into the creek. This'dam…