The U.S. Supreme Court case Atlantic Coast Line Railroad Company v. Standard Oil Company of Kentucky in 1927 revolved around a dispute over freight rates for transporting petroleum products by rail. The Standard Oil Company had been granted a reduced rate by the Interstate Commerce Commission (ICC) due to its high volume of shipments, but this was challenged by the Atlantic Coast Line Railroad who argued that it constituted an unfair preference and violated the Interstate Commerce Act's prohibition on discriminatory practices. The Supreme Court ruled in favor of Standard Oil, stating that while differential pricing based on shipment volume could potentially be discriminatory, there was no evidence to suggest this in the current case as long as such rates were available to all shippers equally regardless of their size or frequency of shipping.

In the dissenting opinion for Atlantic Coast Line Railroad Company v. Standard Oil Company of Kentucky, Justice Stone argued that the majority's decision to allow a shipper to recover damages from a carrier for delays in transportation was inconsistent with previous rulings and interpretations of the Interstate Commerce Act. He contended that it was not within the purview of courts to determine what constitutes reasonable service by carriers or establish penalties for perceived failures in this regard; rather, these matters should be left up to regulatory bodies like the Interstate Commerce Commission (ICC). Furthermore, he expressed concern over potential negative impacts on commerce due to increased litigation and uncertainty surrounding contractual obligations between shippers and carriers resulting from this ruling.