The U.S. Supreme Court case International Bridge Company v. People of the State of New York in 1920 revolved around a dispute over taxation and jurisdictional authority between the state government and a private company operating an international bridge connecting Canada to New York. The International Bridge Company argued that it was exempt from paying taxes levied by the state on its property, including tolls collected for crossing the bridge, due to federal legislation granting them exclusive control over interstate commerce activities at this location. However, the court ruled against them stating that while Congress had given permission for construction of bridges across navigable waters (including those forming international boundaries), it did not explicitly grant tax exemption or immunity from local laws unless specified otherwise in their charter or agreement with Congress. Therefore, they were subject to pay taxes imposed by New York State law.

In the dissenting opinion for International Bridge Company v. People of the State of New York, Justice McReynolds disagreed with the majority's decision that upheld a state law requiring tolls on bridges to be reasonable and just. He argued that this was an infringement upon private property rights as it allowed government interference in setting prices for services provided by privately owned companies. Furthermore, he contended that such regulation could potentially lead to abuse by public authorities who might arbitrarily set low rates without considering fair returns on investments made by these companies. He also expressed concerns about potential negative impacts on future infrastructure development if private investors were discouraged from investing due to fears of excessive governmental control over their profits.