The U.S. Supreme Court case Great Northern Railway Company et al. v. Sutherland, Alien Property Custodian in 1926 revolved around the issue of whether or not the United States government had a right to seize and sell shares owned by an enemy alien during World War I under the Trading with Enemy Act (TWEA). The shares were held by a German national in American corporations including Great Northern Railway Company who challenged this action arguing that TWEA did not apply to such stocks as they were situated within America and thus outside of any enemy country's jurisdiction. However, the court ruled against them stating that while physical location of property is usually decisive for jurisdictional purposes, intangible properties like corporate stock are exceptions due to their unique nature which allows them to be controlled from abroad thereby potentially aiding enemy countries during war times. Therefore, it was concluded that these stocks fell under TWEA’s purview allowing their seizure and sale by US government.

In the dissenting opinion for Great Northern Railway Company et al. v. Sutherland, Alien Property Custodian, Justice Holmes argued that the majority's decision was based on a misinterpretation of the Trading with the Enemy Act and its amendments. He contended that these laws were not intended to allow an alien property custodian to seize assets from American companies merely because they owed debts to foreign entities in enemy countries during wartime. Instead, he believed this power should only be used when there is clear evidence that such assets would otherwise directly benefit enemy nations or their citizens if left untouched by U.S authorities. Furthermore, he disagreed with the majority's view about how broadly Congress had defined "debts" under these laws and felt it did not include obligations like those at issue in this case involving railroad freight charges incurred before America entered World War I but still unpaid afterwards due to circumstances beyond control of either debtor or creditor involved here.