In the 1892 case of Shoemaker v. United States, the Supreme Court upheld a conviction for conspiracy to defraud the government by manipulating land prices in Washington D.C. The defendants were accused of conspiring to inflate property values through false representations and fraudulent transactions, thereby inducing Congress to pay an excessive price when it purchased lands for public purposes. They argued that their actions did not constitute a crime because they had only conspired to cheat and defraud, but had not actually committed fraud or cheated anyone out of anything tangible. However, Justice Gray ruled that any scheme designed with intent to defraud the U.S., whether successful or not, was punishable under federal law as long as at least one act towards its accomplishment was performed within two years prior to indictment.

In the dissenting opinion for Shoemaker v. United States, it was argued that Congress did not have the authority to delegate its legislative power to a commission or any other body. The justices contended that while Congress could create laws and regulations regarding public lands, it could not give this power away to another entity. They believed this action violated the Constitution's separation of powers principle by merging legislative and executive functions in one body - something they considered as unconstitutional delegation of powers. Furthermore, they disagreed with majority’s interpretation of “necessary” clause arguing that such broad interpretation would allow Congress unlimited discretion which is against constitutional principles.