In the case of Louisville & Jeffersonville Bridge Company v. United States, 1918, the U.S. Supreme Court was tasked with determining whether a bridge company could be taxed for its property in Indiana and Kentucky under an act that imposed taxes on corporations' net income. The court ruled against the Louisville & Jeffersonville Bridge Company, stating that it was indeed liable to pay tax as per the federal law even though it had been chartered by Congress to construct and maintain a bridge over Ohio River between Indiana and Kentucky. The court held that being incorporated by Congress did not exempt them from taxation laws applicable to other corporations operating within states' jurisdiction. This decision reinforced federal authority over interstate commerce while also emphasizing state rights in matters of taxation.

In the dissenting opinion for Louisville & Jeffersonville Bridge Company v. United States, 1918, it was argued that the federal government did not have jurisdiction over this case as it involved a dispute between private entities and not an issue of interstate commerce. The justices contended that while Congress has authority to regulate bridges across navigable waters under its power to regulate commerce among states, this should not extend to compelling bridge owners to make specific alterations or improvements at their own expense. They believed such decisions should be left up to state governments or resolved through private litigation. Furthermore, they disagreed with the majority's interpretation of "obstruction" in relation to navigation laws and felt there was insufficient evidence proving the bridge constituted a significant obstruction warranting federal intervention.