In the case of Bacon et al., Public Service Commission of the State of Vermont v. Rutland Railroad Company, 1913, the U.S Supreme Court was asked to determine whether a state could regulate interstate commerce by imposing restrictions on railroad companies operating within its borders. The dispute arose when Vermont's Public Service Commission ordered Rutland Railroad Company to install safety appliances in their trains that were not required under federal law. The company argued this order violated the Commerce Clause as it interfered with interstate commerce which is regulated exclusively by Congress. The court ruled in favor of Rutland Railroad Company, stating that while states have power over local matters and can enact laws for public safety, they cannot interfere with or burden interstate commerce through such regulations unless expressly authorized by Congress. This decision reinforced the principle that federal law supersedes state law when it comes to regulating interstate commerce.

In the dissenting opinion for Bacon et al., Public Service Commission of the State of Vermont, v. Rutland Railroad Company, it was argued that the majority's decision to uphold a state law requiring railroads to provide separate smoking and non-smoking cars violated principles of federalism. The dissenters believed that this issue should be left up to individual states rather than being decided by federal courts. They also contended that there was no constitutional basis for striking down such laws as they did not infringe upon any specific rights or liberties guaranteed by the Constitution. Furthermore, they asserted that these types of regulations were necessary for protecting public health and safety and therefore fell within a state's police powers.