In the case of City of Chicago v. Atchison, Topeka & Santa Fe Railway Co., the U.S Supreme Court ruled in favor of several railway companies against the city of Chicago. The city had enacted an ordinance that required railroads to install safety devices at certain street crossings and sought to hold them responsible for accidents occurring due to their failure to do so. However, the court held that this was a violation of due process under the Fourteenth Amendment because it imposed an unreasonable burden on interstate commerce. The court reasoned that while cities have a legitimate interest in ensuring public safety, they cannot unfairly target businesses involved in interstate trade or place undue burdens on them without violating constitutional protections.

In the dissenting opinion for City of Chicago v. Atchison, Topeka & Santa Fe Railway Co., Justice Frankfurter argued that the Interstate Commerce Commission (ICC) had overstepped its authority by ordering railroads to absorb the cost of a grade separation project in Chicago. He believed this decision was not within ICC's jurisdiction and should have been left to local authorities or courts under state law. The justice contended that Congress did not intend for ICC to regulate such matters when it established the commission, nor did it provide clear guidelines on how costs should be allocated between public bodies and private companies in these situations. Furthermore, he expressed concerns about potential implications of allowing federal agencies to make decisions traditionally reserved for states or municipalities without explicit congressional authorization.