In the 1903 case Wisconsin and Michigan Railway Co. v. Powers, the U.S Supreme Court ruled in favor of railway companies over a dispute involving land rights. The plaintiff, Mr. Powers, claimed that he had purchased a piece of property from an individual who had acquired it through a federal land grant to Michigan for railroad purposes; however, the construction was never completed by the state-designated company within the time limit set by Congress. Therefore, according to him, this title should have reverted back to private ownership rather than going to another railway company (Wisconsin and Michigan Railway). However, upon review of previous rulings and legislation related to such cases - particularly those concerning grants made directly by Congress - it was determined that any lands not used as specified would revert back not into private hands but instead be available for other railroads under Congressional control or disposal at its discretion.

In the dissenting opinion for Wisconsin and Michigan Railway Co. v. Powers, Justice Harlan argued that the majority's decision was a departure from established principles of law regarding interstate commerce regulation. He contended that under these principles, states have authority to regulate matters of local concern even if they indirectly affect interstate commerce unless Congress has legislated on the subject or it is one requiring uniform national regulation. In this case, he believed that Michigan had not exceeded its power by imposing penalties on railroads failing to provide equal service to all shippers within its borders as it did not directly burden or obstruct interstate commerce but rather sought fair treatment for in-state businesses. Furthermore, he asserted that there was no federal legislation conflicting with this state law nor was it an area needing nationwide consistency thus making such state intervention permissible.