In the case of United States v. Oregon and California Railroad Company, 1899, the U.S. Supreme Court ruled in favor of the federal government against a claim by the railroad company for land grants given under an act passed by Congress in 1866. The court held that these lands were not to be sold or disposed of except as provided for in this act which required them to be sold to actual settlers only, at a price fixed by law. The railroad company had been selling large tracts of land at higher prices than allowed under this provision and was therefore found guilty of violating its terms. This decision reaffirmed that corporations must adhere strictly to conditions set forth in laws granting public resources even if they are more restrictive than general laws governing private property rights.

The dissenting opinion in the United States v. Oregon and California Railroad Company case argued that the majority's decision was inconsistent with previous rulings on similar issues. The dissenters believed that the railroad company had a clear right to sell its land, as granted by Congress, without any restrictions imposed by state law. They contended that federal laws should supersede state laws in this matter due to their constitutional authority over interstate commerce and public lands. Furthermore, they disagreed with the majority's interpretation of congressional intent behind granting such rights to railroads, arguing it was meant to encourage development rather than limit property rights or control prices for settlers' benefit. Thus, they felt that imposing limitations on these sales violated both statutory law and principles of equity.