In the case of Bacon, doing business as Wabash Elevator, v. People of the State of Illinois (1912), the U.S Supreme Court ruled in favor of Illinois. The dispute arose when Bacon was charged with violating an Illinois state law that prohibited grain elevators from charging more than a certain rate for storing grain. He argued that this law violated his Fourteenth Amendment rights by depriving him of property without due process and denying him equal protection under the laws because it did not apply to other businesses or commodities. However, the court held that states have broad authority to regulate businesses within their borders if they are affected with a public interest and can set maximum rates for services provided by such businesses without infringing on constitutional rights.

In the dissenting opinion for Bacon v. People of the State of Illinois, Justice Holmes argued that there was no constitutional violation in this case. He contended that a state has every right to regulate businesses within its jurisdiction and ensure they operate fairly and justly. The law under scrutiny did not infringe on any rights or privileges granted by the Constitution but rather sought to prevent unjust practices in business operations. Furthermore, he asserted that it is within a state's power to determine what constitutes fair trade practices and enforce such regulations as necessary for public welfare. Therefore, according to him, the judgment against Bacon should have been upheld since his actions were deemed unfair under Illinois' laws.