The U.S. Supreme Court case Atchison, Topeka & Santa Fe Railway Co. v. Public Utilities Commission of California et al., 1953 revolved around the issue of whether a state could regulate interstate train services without infringing on federal authority over interstate commerce. The dispute began when the Public Utilities Commission of California ordered Atchison, Topeka & Santa Fe Railway Company to continue operating two passenger trains that were running at a loss and which the company wanted to discontinue due to financial reasons. The railway company argued that this order was an undue burden on interstate commerce and thus violated their rights under the Commerce Clause of the Constitution. In its decision, however, the Supreme Court ruled in favor of Public Utilities Commission by upholding its power to impose such orders within reasonable limits as long as it does not interfere with national uniformity in matters related to transportation or communication among states or impede free flow of trade across state lines.

In the dissenting opinion for Atchison, Topeka & Santa Fe Railway Co. v. Public Utilities Commission of California et al., Justice Jackson argued that the majority's decision to strike down a state regulation on interstate commerce was an overreach of federal power and undermined states' rights. He contended that while Congress has authority over interstate commerce, it does not mean they have exclusive control in all matters related to it; states should retain some regulatory powers unless explicitly precluded by federal law or if their actions directly conflict with national policy. In this case, he believed there was no such conflict as both federal and state regulations aimed at ensuring fair rates for rail services. Furthermore, he pointed out that the Interstate Commerce Commission had never objected to similar state laws before nor did they intervene in this case which suggests lack of any real interference with its functions or policies by California’s regulation.