The U.S. Supreme Court case Atlantic Coast Line Railroad Company v. North Carolina Corporation Commission in 1906 revolved around a dispute between the railroad company and the state commission over freight rates. The railroad company argued that the rates set by the North Carolina Corporation Commission were unjustly low, violating their rights under both federal and state law to earn reasonable profits from their operations. They claimed this constituted an unlawful taking of property without due process of law, infringing on their Fourteenth Amendment rights. However, after reviewing evidence presented regarding operating costs and potential earnings at these rates, the Supreme Court ruled against Atlantic Coast Line Railroad Company's claims. The court held that it was within states' powers to regulate commerce within its borders as long as such regulations did not interfere with interstate commerce or violate constitutional protections for businesses.

The dissenting opinion in the Atlantic Coast Line Railroad Company v. North Carolina Corporation Commission case argued that the Supreme Court should not have jurisdiction over this matter, as it was a state issue rather than a federal one. The justices believed that the regulation of railroad rates within individual states fell under state authority and did not violate any constitutional rights or laws. They contended that if every rate established by a state commission could be challenged and brought to federal court, it would undermine the power of states to regulate their own affairs. Furthermore, they expressed concern about potential negative impacts on commerce due to uncertainty caused by constant legal challenges against set rates. In essence, they disagreed with majority's decision because they saw it as an encroachment on states' rights and potentially harmful for business stability.