The Alton Railroad Co. v. Illinois Commerce Commission et al., 1938, was a case that revolved around the issue of whether or not the state of Illinois had jurisdiction to regulate intrastate railroad rates for railroads operating both within and outside its borders. The Alton Railroad Company argued that it should be exempt from such regulation because it also operated interstate commerce, which is under federal jurisdiction according to the Interstate Commerce Act (ICA). However, the Supreme Court ruled against this argument stating that while ICA does grant regulatory power over interstate commerce to federal authorities, it doesn't prevent states from regulating intrastate aspects of businesses involved in interstate commerce as long as these regulations do not interfere with federal control over interstate operations. Therefore, even though Alton Railroad Company engaged in both intra- and inter-state business activities, they were still subject to state regulation on their intrastate operations.

In the dissenting opinion for Alton Railroad Co. v. Illinois Commerce Commission et al., Justice Butler argued that the majority's decision was an overreach of federal power and a violation of state rights. He contended that states should have the authority to regulate their own commerce, including setting rates for intrastate railroad transportation, without interference from federal agencies or courts. Furthermore, he believed that there was no evidence showing these state-regulated rates were unreasonable or discriminatory against interstate commerce as claimed by Alton Railroad Company. Therefore, in his view, it was unjustified for the Supreme Court to strike down Illinois' rate-setting laws based on mere speculation about potential harm to interstate commerce rather than concrete proof.