The U.S. Supreme Court case Towar Cotton Mills, Inc. v. United States in 1925 revolved around a dispute over the interpretation of tariff laws and their application to cotton linters (a by-product from ginning cotton). The plaintiff, Towar Cotton Mills, argued that its imported cotton linters should be classified under paragraph 1402 of the Tariff Act as "cotton waste," which would result in lower import duties than if they were classified as raw cotton under paragraph 1201. However, the government contended that these materials fell into the category of raw cotton due to their potential use for manufacturing purposes similar to those of raw cotton. In this case, both parties presented evidence supporting their respective positions but ultimately it was up to the court's discretion on how best to interpret and apply relevant tariff laws based on such evidence. The Supreme Court ruled in favor of the United States Government stating that despite being a byproduct or residue from another process; because these linters could still be used similarly like unprocessed or 'raw' material - they should indeed fall under higher duty rates applicable for raw materials rather than waste products.

The dissenting opinion in the case of Towar Cotton Mills, Inc. v. United States argued that the government's actions were not justified under its war powers and violated the Fifth Amendment rights of the company. The justice contended that while Congress has broad authority to act during times of war, this power is not unlimited and does not extend to taking private property without just compensation. In this case, they believed that by seizing cotton owned by Towar Cotton Mills for use in manufacturing wartime supplies without providing adequate compensation, the government had overstepped its bounds and infringed upon constitutional protections against such seizures. They also disagreed with majority’s interpretation of “public use” arguing it was too expansive which could potentially lead to abuse of power.