In the case of Board of Public Utility Commissioners et al. v. New York Telephone Company, 1925, the U.S Supreme Court ruled in favor of New York Telephone Company. The dispute arose when the Board of Public Utility Commissioners attempted to regulate and reduce rates charged by the telephone company for its services within New Jersey state lines on interstate calls - a power that was claimed under state law but conflicted with federal jurisdiction over interstate commerce. The court held that such regulation was beyond the scope of state authority as it interfered with interstate commerce which is under exclusive federal control according to Commerce Clause in Constitution (Article I, Section 8). Therefore, any attempt by a state agency to impose regulations or restrictions on an entity involved in interstate trade would be considered unconstitutional unless specifically authorized by Congress.

In the dissenting opinion for the case of Board of Public Utility Commissioners et al. v. New York Telephone Company, Justice McReynolds argued that the majority's decision to uphold a state law requiring telephone companies to share their lines with competitors was an overreach of judicial power and violated property rights protected by due process under the Fourteenth Amendment. He contended that this ruling effectively allowed states to force private businesses into involuntary partnerships without just compensation or consideration for potential harm caused by such arrangements. Furthermore, he expressed concern about setting a precedent where courts could dictate business operations based on public convenience rather than legal principles or contractual agreements between parties involved.