In the 1902 case of Pacific Steam Whaling Company v. United States, the Supreme Court ruled in favor of the U.S. government, upholding a decision by lower courts that denied compensation to the whaling company for damages incurred during an Alaskan expedition. The company had sought reimbursement under an act passed by Congress in 1891 which provided relief for vessels employed on sealing voyages that were seized and damaged as part of Bering Sea controversy between Great Britain and America over fur seal hunting rights. However, it was determined that this law did not apply to whale ships like those owned by Pacific Steam Whaling Company because they were not involved in fur-seal fishing activities but rather engaged solely in whaling operations. Therefore, their claim was deemed ineligible under this specific legislation.

The dissenting opinion in the case of Pacific Steam Whaling Company v. United States argued that the majority's interpretation of the law was incorrect and overly broad. The dissent contended that, under a proper reading of the statute, it should not apply to vessels like those owned by Pacific Steam Whaling Company because they were not engaged in transporting goods or passengers for hire between ports within Alaska and other U.S. ports but rather involved in whaling activities at sea. They believed this activity fell outside the purview of what Congress intended to regulate with its legislation on coastwise trade laws which aimed at protecting domestic shipping interests from foreign competition. Therefore, according to them, imposing penalties on such companies based on these laws was unjustified as their operations did not pose any threat to American coastal trade.