In Marsh v. Alabama, the U.S Supreme Court ruled in 1945 that a state trespassing statute could not be used to prevent the distribution of religious materials on a town's sidewalk, even though the sidewalk was part of a privately owned company town. The case involved Grace Marsh who had been convicted of criminal trespass for distributing Jehovah’s Witnesses literature in Chickasaw, Alabama - a Gulf Shipbuilding Corporation-owned company town. The court held that no matter whether the property is publicly or privately owned, people still have their First Amendment and Fourteenth Amendment rights under the United States Constitution. Therefore, it concluded that ownership does not always mean absolute dominion and certain public interests are paramount to private property rights.

In the dissenting opinion for Marsh v. Alabama, Justice Reed argued that private property rights should be upheld over First Amendment rights in this case. He contended that a privately owned company town has the right to regulate activities within its boundaries, including distribution of religious literature. The majority's decision to prioritize free speech and religion on private property was seen by him as an infringement upon the owner's constitutional rights. Furthermore, he expressed concern about potential implications of this ruling on other types of private properties such as apartment complexes or shopping centers where public access is granted but control remains with the owners. In his view, if these places are also deemed public forums due to their accessibility then it would significantly limit proprietors' ability to manage their own premises.