In the 1895 case of Edwards v. Bates County, the U.S Supreme Court was tasked with deciding on a dispute over bonds issued by Bates County in Missouri to aid in the construction of railroads. The county had issued these bonds under an act that allowed counties and municipalities to issue such financial instruments for public improvements. However, it later refused to pay interest on them, arguing that they were unconstitutional because they served private rather than public interests. The court ruled against Bates County stating that while there may be some private benefit from such projects, this does not negate their overall public utility or purpose. Therefore, since railroad construction is generally considered a matter of public concern due its impact on commerce and transportation infrastructure development within states; hence making it constitutional for local governments to support such initiatives financially through bond issuance.

The dissenting opinion in the Edwards v. Bates County case argued that the county should not be held liable for bonds issued to railroads during a time of economic development, as it was acting under state authority and with public approval. The justice contended that these bonds were part of an effort to encourage infrastructure growth and stimulate local economies, which was seen as beneficial at the time they were issued. He also pointed out that many other counties had engaged in similar practices without facing legal repercussions. Therefore, he believed it unfair to single out Bates County for punishment when its actions reflected common practice across many jurisdictions during this period of American history.