The U.S. Supreme Court case Alabama Public Service Commission et al. v. Southern Railway Co., 1950, revolved around the issue of whether a state could regulate interstate train schedules without federal approval. The Alabama Public Service Commission had ordered Southern Railway to continue operating two passenger trains that were running at a loss and which the company wanted to discontinue due to financial reasons; however, these trains provided an essential service for many communities in Alabama. The court ruled in favor of Southern Railway, stating that states cannot interfere with interstate commerce as it is under federal jurisdiction according to the Commerce Clause of the Constitution (Article I, Section 8). This decision affirmed that only Congress has authority over such matters and emphasized the importance of maintaining uniformity in regulations governing national transportation networks.

In the dissenting opinion for Alabama Public Service Commission et al. v. Southern Railway Co., Justice Frankfurter argued that the Court had overstepped its bounds by interfering with a state's ability to regulate its own economic affairs. He contended that it was not within the purview of federal courts to determine whether or not a state commission's decision regarding intrastate railway rates was reasonable, as this fell under states' rights and powers granted by their constitutions and statutes. The justice also expressed concern about potential negative impacts on federal-state relations due to such interference in local matters, cautioning against undermining cooperative federalism principles which allow both levels of government to function effectively within their respective spheres of authority.