The U.S. Supreme Court case Allen et al., Railroad Commissioners of the State of Arkansas, v. St. Louis, Iron Mountain & Southern Railway Company in 1912 revolved around a dispute over railroad freight rates set by the state's Railroad Commission. The railway company argued that these rates were unreasonably low and thus violated its constitutional rights under the Fourteenth Amendment - specifically its right to due process and equal protection under law as they did not allow it to make fair profits from intrastate commerce operations. However, after examining evidence presented about operating costs and potential earnings at those rates, the court ruled against this argument stating that while corporations are entitled to reasonable returns on their investments, public interest also needs consideration when setting such prices or tariffs for utilities like railroads which serve general public needs.

The dissenting opinion in the case of Allen et al., Railroad Commissioners of the State of Arkansas, v. St. Louis, Iron Mountain & Southern Railway Company argued that the majority's decision was an overreach and intrusion into state affairs by federal power. The dissenters believed that it should be up to individual states to regulate their own commerce within their borders without interference from federal courts or agencies unless there is a clear violation of constitutional rights or principles at stake. They contended that this ruling could potentially undermine states' ability to effectively govern themselves and manage their own economic affairs as they see fit according to local needs and circumstances. Furthermore, they expressed concern about setting a dangerous precedent for future cases where federal authorities might feel entitled or emboldened to intervene unnecessarily in matters traditionally reserved for state jurisdiction.