In the case of Chicago, Indianapolis and Louisville Railway Company v. United States in 1910, the Supreme Court ruled on a dispute involving railway freight rates. The Interstate Commerce Commission (ICC) had ordered that certain railroads reduce their rates for transporting coal because they were deemed unreasonable and discriminatory. The Chicago, Indianapolis & Louisville Railway Company challenged this order in court arguing that it was beyond ICC's authority to set specific rate levels. However, the Supreme Court upheld ICC's decision stating that Congress had granted them such power under the Hepburn Act of 1906 which aimed at regulating railroad charges to protect consumers from excessive prices or price discrimination by monopolistic carriers. This ruling affirmed federal regulatory authority over private business operations when public interest is involved.

In the dissenting opinion for the case of Chicago, Indianapolis and Louisville Railway Company v. United States, it was argued that the Interstate Commerce Commission (ICC) did not have authority to regulate railway rates without judicial review. The dissenting justices contended that Congress could not delegate its legislative powers to an administrative agency like ICC without providing a standard or rule by which such power should be exercised. They believed this violated separation of powers principles as it allowed an executive body to exercise legislative functions unchecked by judiciary oversight. Furthermore, they expressed concern over potential infringement on property rights if railroads were forced to comply with arbitrary rate changes imposed by ICC without any opportunity for court appeal.