In the case of American Manufacturing Company v. City of St. Louis, 1918, the U.S Supreme Court ruled in favor of the city's right to regulate and control its own property for public use. The American Manufacturing Company had leased a wharf from the city but was later asked to vacate it as part of a plan by St. Louis to improve riverfront facilities and create better access for public use. The company sued on grounds that their lease was still valid and they should not be forced out before its expiration date. The court held that cities have inherent powers over their properties which include making improvements or changes necessary for public welfare even if this interferes with private contracts such as leases made with individuals or corporations like American Manufacturing Co., provided due process is followed (i.e., adequate notice given). This decision upheld municipal authority over local affairs while also recognizing limits imposed by constitutional rights against arbitrary government action.

In the dissenting opinion for American Manufacturing Company v. City of St. Louis, it was argued that the city's ordinance requiring a license fee from manufacturers using flammable materials was not an unconstitutional interference with interstate commerce. The dissenting justices believed that this case did not involve discrimination against out-of-state businesses or goods, but rather a legitimate exercise of police power to protect public safety and welfare. They contended that such regulations were within the purview of local governments unless they directly burdened or discriminated against interstate commerce in favor of local interests, which they didn't believe was true in this instance. Therefore, according to them, there should be no federal constitutional barrier preventing enforcement of the ordinance.