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In the case of American Trucking Associations, Inc., et al. v. Frisco Transportation Co., the U.S Supreme Court ruled in favor of Frisco Transportation Co., a small trucking company that had been granted permission by the Interstate Commerce Commission (ICC) to operate as a common carrier between certain points in Missouri and Oklahoma. The American Trucking Associations, along with several other large trucking companies, challenged this decision on grounds that it was not supported by substantial evidence and violated their rights under due process clause of Fifth Amendment. However, the court held that ICC's decision was based on sufficient evidence showing public need for services offered by Frisco and did not violate any constitutional rights of petitioners. This ruling affirmed lower courts' decisions upholding ICC's authority to grant operating permits based on its assessment of public convenience and necessity.
In the dissenting opinion for the American Trucking Associations, Inc., et al. v. Frisco Transportation Co., case, it was argued that the Interstate Commerce Commission (ICC) should not have been allowed to grant a permit to Frisco without considering whether existing carriers could adequately meet transportation needs. The dissenters believed that this decision violated Section 207(a) of the Motor Carrier Act which requires such consideration before issuing certificates of public convenience and necessity. They also disagreed with majority's interpretation of "public interest" in relation to ICC’s role in regulating competition among motor carriers, arguing that Congress intended for ICC to protect against destructive competition by ensuring new entrants do not undermine existing services' ability to provide adequate and efficient service at reasonable rates.