In the case of Old Nick Williams Company v. United States (1909), the U.S. Supreme Court dealt with a dispute over tax assessment on distilled spirits. The Old Nick Williams Company, a distillery business, argued that they were unfairly taxed by the Internal Revenue Service for spirits lost due to leakage and evaporation during storage in bonded warehouses before tax determination was made. They claimed this violated their Fifth Amendment rights against being deprived of property without due process of law. The court ruled in favor of the United States government stating that taxation is not an act constituting deprivation of property but rather it's an attribute inherent to sovereignty power which doesn't require compensation under constitutional provisions. Furthermore, it held that while losses from leakage or evaporation might be unfortunate for businesses like Old Nick Williams Co., these are risks associated with such trade and do not constitute unlawful taking by the government.

In the dissenting opinion for Old Nick Williams Company v. United States, Justice Harlan argued that the majority's decision was a misinterpretation of Congress' intent in passing the tax law at issue. He believed that Congress intended to levy taxes on all distillers equally and did not intend to give preferential treatment to those who produced less than 500 barrels per year. The majority's interpretation, according to Justice Harlan, created an unfair advantage for smaller producers by exempting them from certain taxes - something he felt was contrary to Congressional intent and principles of fairness in taxation. Furthermore, he disagreed with the majority's view that this exemption could be justified as a regulatory measure designed to discourage excessive production of spirits; instead, he saw it as an arbitrary distinction without basis in law or policy.