In the case of The Ferries Company v. United States in 1924, the U.S Supreme Court ruled on a dispute involving ferry services between New York and New Jersey. The Ferries Company had been operating under an exclusive contract with the city of Hoboken, but this was challenged by another company who argued that it violated interstate commerce laws. The court held that while states have power to regulate their internal commerce, they cannot interfere with or burden interstate commerce - which is exclusively within federal control. Therefore, any state-granted monopoly for ferry service across navigable waters separating two states was unconstitutional as it interfered with Congress's right to regulate such matters under its Commerce Clause powers. This ruling reaffirmed federal supremacy over interstate trade regulation and limited state powers in these areas.

In the dissenting opinion for The Ferries Company v. United States, the justice argued that the federal government did not have jurisdiction over ferry services operating entirely within a single state's boundaries. They contended that while Congress has authority to regulate interstate commerce, it does not extend to intrastate activities unless they directly affect interstate commerce. In this case, since the ferry service operated solely within Washington State and was regulated by local authorities, it should be exempt from federal regulation under the Commerce Clause of Constitution. Furthermore, they disagreed with majority’s interpretation of “navigable waters” as including all bodies of water capable of being used for transportation regardless their connection or non-connection with other states’ waters or international borders; instead arguing such definition should only apply when there is an actual impact on interstate trade or foreign relations.