In the 1908 case of Oceanic Steam Navigation Company v. Stranahan, the U.S. Supreme Court upheld a fine imposed on the Oceanic Steam Navigation Company by an immigration official for bringing in immigrants who were not able to support themselves financially. The company argued that it was unconstitutional for an administrative officer to impose such fines without judicial review and claimed that they had no way of knowing whether or not these passengers would be deemed "public charges" upon arrival in America. However, the court ruled against them stating that Congress has broad power over immigration policy and can delegate authority to administrative officials as necessary. Furthermore, it held that due process does not require judicial proceedings in every instance where property rights are affected; rather, what is required is simply fair procedure which could take different forms depending on circumstances.

In the dissenting opinion for Oceanic Steam Navigation Company v. Stranahan, Justice Harlan argued that the majority's decision to uphold a statute imposing fines on steamship companies for each immigrant passenger they brought to U.S. shores who was deemed "undesirable" by immigration officials was unconstitutional. He contended that this law effectively delegated legislative power to executive officers, which he believed violated the separation of powers principle inherent in the Constitution. Furthermore, he expressed concern about due process rights being infringed upon as these decisions were made without judicial review or any clear standards set forth in legislation regarding what constituted an "undesirable" immigrant. This lack of clarity and potential for arbitrary enforcement troubled him greatly.