In the United States v. Chandler-Dunbar Water Power Company case of 1912, the Supreme Court ruled that Congress had authority under the Commerce Clause to control and regulate navigable waters within U.S. territory for public use. The Chandler-Dunbar Water Power Company owned an island in St Mary's River which they used for power generation purposes. However, when Congress passed a law authorizing construction of a lock on part of this river, it also declared all surplus water over Saint Mary’s Falls Canal (including those passing through company property) as non-navigable and thus not subject to private ownership rights. The company challenged this action arguing that it amounted to illegal seizure without compensation violating Fifth Amendment rights. The court rejected their claim stating that while riparian owners have certain rights regarding water flow adjacent to their land, these do not extend into absolute ownership especially where such waters are deemed necessary for public navigation or other uses by Congress. This ruling affirmed federal government's supremacy in controlling and regulating navigable waters even if it infringes upon private property interests thereby setting important precedent concerning eminent domain powers related with natural resources.

The dissenting opinion in the United States v. Chandler-Dunbar Water Power Company case argued that the federal government did not have unlimited power to seize private property for public use without just compensation, even if it was for navigable waters improvement. The dissenters believed that this interpretation of the Commerce Clause would lead to an overreach of governmental powers and infringe upon individual rights protected by the Fifth Amendment. They contended that while Congress had authority over interstate commerce and could regulate navigation on national waterways, it didn't give them absolute control or ownership over all aspects related to these waters. Therefore, they disagreed with majority's decision which allowed a broad seizure of private properties under guise of improving navigation but actually aimed at generating electricity - a purpose not directly linked with navigation or commerce regulation.