In the Baltimore and Ohio Railroad Company v. Interstate Commerce Commission case of 1910, the U.S Supreme Court upheld the power of the Interstate Commerce Commission (ICC) to set maximum railroad rates. The Baltimore and Ohio Railroad Company had challenged this authority, arguing that it was an infringement on their rights as a private corporation. However, in its decision, the court emphasized that railroads were not purely private businesses but rather served a public function due to their role in interstate commerce. Therefore, they could be subjected to government regulation for public interest purposes such as preventing excessive pricing or discriminatory practices against certain regions or customers. This ruling affirmed ICC's regulatory powers over railroads under federal law.

The dissenting opinion in the case of Baltimore and Ohio Railroad Company v. Interstate Commerce Commission argued that the court majority had overstepped its jurisdiction by ruling on a matter that should have been left to the discretion of administrative bodies, specifically, the Interstate Commerce Commission (ICC). The dissenters believed that it was not within their purview as justices to determine whether or not a railroad company's rates were reasonable; this responsibility fell under ICC’s authority. They contended that courts should only intervene when there is clear evidence of an abuse of power or violation of constitutional rights, neither of which they found present in this case. Therefore, they disagreed with the majority's decision to overturn ICC’s order for rate adjustments based on their own assessment rather than deferring to ICC’s expertise and judgment.