In the 1910 case of Illinois Central Railroad Company v. Commonwealth of Kentucky, the U.S Supreme Court ruled in favor of Kentucky. The dispute arose when Illinois Central Railroad claimed ownership over a portion of land submerged under water in the Ohio River, arguing that it had been granted this parcel by an 1854 charter from Kentucky's legislature. However, the court held that states hold "public trust" over navigable waters and their submerged lands for purposes such as commerce or fishing; therefore they cannot be transferred to private ownership without specific legislation stating so. In this case, no such explicit provision was found in the railroad’s charter granting them rights to these underwater lands. Thus, despite any general language used in its grant from Kentucky's legislature, Illinois Central did not have property rights to these submerged lands.

In the dissenting opinion for the case of Illinois Central Railroad Company v. Commonwealth of Kentucky, it was argued that the majority's decision to deny Illinois Central Railroad Company's claim over a portion of land submerged under water in Louisville Harbor was incorrect. The dissenting justices believed that when Kentucky granted this land to Louisville city, it had relinquished its rights and could not later reclaim them from subsequent owners like Illinois Central. They contended that such an action violated principles of fairness and property rights as established by common law tradition and precedent. Furthermore, they disagreed with the majority’s interpretation regarding public trust doctrine which held states responsible for preserving certain lands for public use; instead they asserted this doctrine did not apply here because navigable waters were not obstructed or impacted negatively by railroad company’s ownership or usage.