In the case of Utah Power & Light Company v. United States (1916), the Supreme Court ruled that Congress had constitutional authority to regulate and impose taxes on private companies using public lands for commercial purposes, even if those lands were not purchased from the government. The Utah Power & Light Company was a privately owned utility company that built power lines across federal land without purchasing it or paying any fees. The U.S. government imposed fines on the company under an 1891 law which required payment for such use of public lands. The company argued this was unconstitutional as they hadn't bought or leased the land but merely used it in passing, however, their argument was rejected by both lower courts and eventually by Supreme Court too.

In the dissenting opinion for Utah Power & Light Company v. United States, Justice McReynolds disagreed with the majority's interpretation of federal law and its application to private corporations using public lands for commercial purposes. He argued that Congress did not intend to regulate or tax these companies under existing laws related to land use, as they were primarily designed for individuals settling on public lands rather than businesses operating there. Furthermore, he contended that if such regulation was intended by Congress, it should have been explicitly stated in legislation instead of being inferred by court rulings. The justice also expressed concern about potential overreach by federal agencies in interpreting and enforcing these laws without clear guidance from lawmakers.