In the case of Northern Pacific Railway Company v. Meese in 1915, the U.S Supreme Court ruled on a dispute involving land rights and railroad construction. The Northern Pacific Railway Company had been granted certain lands by Congress to aid in building their railway line. However, some of these lands were already occupied by settlers under homestead laws before the grant was made. The court held that where there is a conflict between a private land claim and a federal land grant for railroads, priority should be given to those who first occupied and improved the property if they did so before notice of withdrawal or reservation for railroad purposes was issued by Land Department officials. Therefore, it upheld lower courts' decisions favoring settlers over railways when both claimed ownership based on different Congressional Acts passed at different times.

The dissenting opinion in the Northern Pacific Railway Company v. Meese case argued that the majority's decision to uphold a lower court ruling, which allowed for an injunction against the railway company from charging higher rates than those set by state law, was incorrect. The dissenters believed that this decision violated principles of federalism and states' rights as it interfered with matters traditionally left to individual states - specifically, their ability to regulate commerce within their borders. They also contended that such interference could potentially harm businesses by forcing them into bankruptcy due to inability to adjust prices according to market conditions or operational costs. Furthermore, they expressed concern over potential abuse of judicial power through excessive use of injunctions in commercial disputes.