
    Appeal of ALGOMA LUMBER CO.
    Docket No. 841.
    Submitted July 10, 1925.
    Decided September 8, 1925.
    
      Frank G. Butts, Esq., for the taxpayer.
    
      Benjamin H. Saunders, Esq., for the Commissioner.
    Before Smith and Littleton.
   This appeal is from a determination of deficiencies in income and profits tax for the years 1917 and 1918 in an amount less than $10,000. In its petition the taxpayer alleges that the Commissioner has erroneously disallowed the deduction from gross income of each of the years 1917 and 1918 of losses sustained as a result of beetle damage in its timber reserves. No evidence in support of the allegation of error was introduced at the hearing.

FINDINGS OF FACT.

The taxpayer is a California corporation with its principal office at Los Angeles. In an audit of its income-tax returns for the years 1917 and 1918 the Commissioner disallowed the deduction of $5,982.32 and $8,466.52, respectively, as loss from beetle damage. This loss was predicated upon a claimed value of timber at March 1, 1913, in excess of cost.

DECISION.

The determination of the Commissioner is approved.

ARTjndell not participating.  