The U.S. Supreme Court case Atlantic Coast Line Railroad Company v. Wharton et al., 1907, revolved around a dispute between the railroad company and South Carolina's state railroad commissioners over freight rates for intrastate commerce. The commission had set certain rates that the Atlantic Coast Line Railroad Company argued were so low as to be confiscatory, violating their rights under the Fourteenth Amendment of the Constitution which prohibits states from depriving any person or corporation of property without due process of law. The court ruled in favor of the railroad company, stating that while states have power to regulate commerce within their borders, they cannot use this power to enforce regulations that are unjustly discriminatory or result in confiscation. This decision affirmed corporations' constitutional protections against unfair regulation by state governments.

The dissenting opinion in the case of Atlantic Coast Line Railroad Company v. Wharton et al., argued that the majority's decision to uphold South Carolina's railroad regulation was an overreach of state power and a violation of interstate commerce laws. The dissenters believed that while states have the right to regulate businesses within their borders, they should not be able to impose regulations on companies operating across multiple states as it interferes with federal authority over interstate commerce. They also expressed concerns about potential economic consequences if each state were allowed to set its own rules for railroads, which could lead to inconsistent standards and hinder efficient operation of national transportation networks. Furthermore, they disagreed with the majority’s interpretation of “just compensation,” arguing that it should include profits lost due to regulatory restrictions rather than just direct costs incurred by complying with them.