The Addyston Pipe and Steel Company v. United States case in 1899 revolved around the issue of antitrust laws and their application to manufacturing companies. The Addyston Pipe and Steel Company, along with five other iron pipe manufacturers, formed a cartel agreement to control prices and eliminate competition within their industry across several states. The U.S government sued them under the Sherman Antitrust Act for restraint of trade. The Supreme Court ruled against the company, stating that while some agreements among businesses could be reasonable if they were necessary for business operations or production, this was not such an instance as it directly impacted interstate commerce by artificially controlling prices which is illegal under federal law. This ruling set a precedent in American jurisprudence regarding antitrust legislation enforcement.

In the dissenting opinion for Addyston Pipe and Steel Company v. United States, Justice Peckham argued that the Sherman Anti-Trust Act did not apply to manufacturing contracts like those in question. He believed that Congress had no power over such agreements unless they directly affected interstate commerce, which he felt was not the case here. The majority's interpretation of what constituted a restraint on trade was too broad in his view; it would make illegal many ordinary business practices and arrangements among manufacturers who were merely trying to stabilize their industry or protect themselves from ruinous competition. Furthermore, he contended that if every contract affecting interstate commerce came under federal jurisdiction as per this ruling, then almost all aspects of business would be subject to congressional control - an outcome he deemed inconsistent with constitutional principles of limited government and states' rights.