In the case of Texas and Pacific Railway Company v. Southern Pacific Company, 1890, the U.S. Supreme Court was tasked with resolving a dispute over railway routes in Texas. The Texas & Pacific Railway Co., under an Act of Congress from 1871, claimed it had exclusive rights to construct and operate a railroad along a specific route between Marshall and El Paso, TX. However, the Southern Pacific Co., which had been granted similar privileges by California legislation for constructing railroads within its state boundaries extending into other states or territories including Arizona and New Mexico (which then included parts of modern-day West-Texas), argued that this did not infringe upon Texas & Pacific's charter as their lines would not intersect nor were they parallel. The court ruled in favor of Southern Pacific Co., stating that while Congress has power over interstate commerce regulation including railways construction across multiple states; it cannot interfere with individual state’s internal affairs unless there is direct conflict with federal law or constitution - which wasn't present here since both companies' charters allowed them to build on different paths without crossing each other's line.

In the dissenting opinion for Texas and Pacific Railway Company v. Southern Pacific Company, Justice Lamar disagreed with the majority's interpretation of the law regarding land grants to railway companies. He argued that Congress intended to grant alternate sections of land on each side of a railroad line, not just one side as interpreted by the majority. According to him, this was evident from both historical context and legislative intent behind such laws. Furthermore, he contended that if there were any ambiguity in these laws or their application, it should be resolved in favor of public interest rather than private corporations'. In his view, granting more lands than necessary would unjustly enrich railroads at public expense while undermining government’s ability to manage its resources effectively for common good.