In the case of City of Chicago et al. v. United States et al., 1969, the U.S Supreme Court ruled in favor of the federal government's power to regulate interstate commerce over state and local interests. The dispute arose when several cities including Chicago filed a lawsuit against an order by Interstate Commerce Commission (ICC) that increased railroad freight rates nationwide by 3%. The cities argued this would harm their economies and was beyond ICC's authority as it interfered with intrastate commerce which should be under state control according to them. However, the court held that since railroads operate as part of a national system, they fall within Congress' jurisdiction under its constitutional mandate to regulate interstate commerce even if some aspects may affect intrastate activities too. Therefore, ICC had validly exercised its powers granted by Congress while issuing such orders.

In the dissenting opinion for the case City of Chicago et al. v. United States et al., Justice Harlan argued that Congress did not intend to give exclusive jurisdiction over railroad rate increases to the Interstate Commerce Commission (ICC). He contended that it was within a state's rights to regulate intrastate commerce, including rail rates, as long as it didn't interfere with interstate commerce or federal regulation. The majority decision held that states could not challenge ICC-approved rate increases in court; however, Justice Harlan believed this interpretation went against congressional intent and historical precedent which allowed states some regulatory power over their own commercial affairs. Furthermore, he expressed concern about potential harm caused by unchecked federal authority and advocated for maintaining a balance between state and federal powers.