In the case of Iowa Railroad Land Company v. Blumer (1906), the U.S. Supreme Court ruled in favor of the Iowa Railroad Land Company, reversing a decision by lower courts that had favored Blumer. The dispute centered around land ownership rights; specifically, whether or not certain lands were part of an 1856 grant to build railroads in Iowa. The court found that even though some sections weren't marked as "granted" on official plats until after they'd been sold to settlers like Blumer, these lands were still intended for railroad use and thus belonged to the company under terms of their original agreement with Congress.

The dissenting opinion in the case of Iowa Railroad Land Company v. Blumer argued that the majority's decision to uphold a tax assessment on land owned by the railroad company was incorrect. The dissent contended that this ruling contradicted previous court decisions which had established that lands granted to railroads by Congress were not subject to state taxation until they had been sold or leased out for profit. They believed this principle should have applied in this case, as it would be unfair and potentially harmful for businesses if states could arbitrarily impose taxes on unsold lands held by corporations like railroads. In their view, such an approach would discourage investment and hinder economic development.