In the 1916 case of Louisville Bridge Company v. United States, the Supreme Court ruled in favor of the U.S. government, asserting its right to regulate interstate commerce and navigation under Article I Section 8 Clause 3 of the Constitution (the Commerce Clause). The dispute arose when a bridge built by Louisville Bridge Company over Ohio River was deemed an obstruction to free navigation due to its low height. The company argued that since it had been chartered by Kentucky before Congress enacted legislation regulating bridge heights, it should be exempt from such regulation. However, Justice Holmes delivered an unanimous decision stating that even if a state granted charter predates federal law on similar subject matter, it does not prevent application of subsequent federal laws as long as they are within constitutional limits set for Congress's powers - in this case power over interstate commerce and navigation.

In the dissenting opinion for the case Louisville Bridge Company v. United States, Justice Holmes disagreed with the majority's decision that Congress had authority over bridges spanning navigable waters under its power to regulate interstate commerce. He argued that while Congress could control navigation on these waters, it did not have unlimited power over structures like bridges unless they interfered with navigation. According to him, a bridge is primarily a local concern and should be subject to state law unless it obstructs or affects interstate commerce in some way. In this particular case, he believed there was no evidence showing that the bridge at issue impeded navigation or affected interstate commerce; thus federal regulation was unwarranted.