James Clark McReynolds

“ Manifestly, the fair market value of this interest in 1913 was much less than 25 cents per ton of the estimated contents of the mines, but respondent introduced no evidence which tended to show such value. The suggestion that market value per ton on March 1, 1913, was equivalent to the sum which, if then put at simple interest, would have amounted to 25 cents when the ore was actually out and the stipulated royalty became payable, cannot be accepted. This method of estimation would decrease the 1913 market value with the passing of every year. ”

“ These leases require payments quarterly of 25 cents royalty per ton upon all ore extracted; provide for minimum annual production and termination under specified circumstances.
During the year 1917 she received out of such royalties $260,072.30; during 1918, $219,940.43. For 1917 she was allowed $99,561.20 as depletion; for 1918, $84,979.55. Income tax was assessed against her upon the balances and payment exacted. Thereafter she unsuccessfully claimed refunds because the sums allowed for depletion were insufficient. ”

“ United States, 278 U.S. 282, 289, 290, 49 S.C.t. 129, 132, 73 L. Ed. 379; United States v. Anderson, 269 U.S. 422, 443, 46 S.C.t. 131, 70 L. Ed. 347. The real point is whether respondent established her claim for refund by adequate evidence And we think she did not. ”