In the 1917 case Exploration Company, Limited et al. v. United States, the U.S Supreme Court ruled in favor of the government regarding a dispute over land ownership in Alaska. The Exploration Company had claimed that they owned certain Alaskan lands based on an 1867 treaty between Russia and America which stated that any unoccupied or unsettled lands would belong to existing owners if they were not used for public purposes within three years after ratification of this treaty by Russia. However, the court found no evidence proving that these specific lands were occupied or settled at the time of transfer from Russia to America nor did it find proof showing use for public purposes within three years post-ratification as required by said treaty. Therefore, it held that under American law all rights to such vacant and unappropriated non-mineral land are vested in Government unless expressly granted away.

The dissenting opinion in the case of Exploration Company, Limited v. United States argued that the majority's decision to uphold a tax on mineral rights was incorrect. The dissenters believed that this tax violated property rights and exceeded Congress' power under the Constitution. They contended that while Congress has broad powers to levy taxes, it does not have unlimited authority to do so at the expense of individual property rights. In their view, taxing mineral resources still underground amounted to an unconstitutional taking without just compensation because these resources had not yet been extracted or sold for profit. Therefore, they could not be considered income subject to taxation under existing laws and constitutional provisions governing taxation.