In the case of Arkansas Louisiana Gas Co. v. Department of Public Utilities et al., 1937, the U.S Supreme Court ruled in favor of the Arkansas Louisiana Gas Company (Arkla). The issue at hand was whether or not a state could regulate natural gas rates for gas that had been transported across state lines and sold directly to consumers within its borders. Arkla argued that this regulation violated their rights under the Commerce Clause as it interfered with interstate commerce. The court agreed, stating that while states have power to control utilities within their boundaries, they cannot interfere with interstate commerce by regulating prices for goods brought from another state and sold directly to consumers without any local distribution system involved.

The dissenting opinion in the Arkansas Louisiana Gas Co. v. Department of Public Utilities case argued that the majority's decision to uphold state regulation over interstate commerce was a departure from established legal precedent and could potentially undermine federal authority. The dissenters believed that the natural gas company, which operated across state lines, should be subject to federal rather than state jurisdiction as per the Commerce Clause of the U.S Constitution. They expressed concern about potential conflicts arising from different states imposing their own regulations on such companies, leading to an inconsistent regulatory environment that could impede interstate commerce. Furthermore, they contended that this ruling might encourage other states to assert control over industries traditionally regulated by federal authorities.