The U.S. Supreme Court case Cincinnati, Hamilton and Dayton Railway Company v. Interstate Commerce Commission in 1906 revolved around the issue of whether or not a railway company could be compelled to provide equal rates for similar services over different routes under its control. The Cincinnati, Hamilton & Dayton Railway Company had been charging higher rates for shorter distances on one route compared to longer ones on another route which was found discriminatory by the Interstate Commerce Commission (ICC). The ICC ordered the railway company to stop this practice but it refused and appealed against this decision arguing that it has discretion over setting prices based on market conditions rather than distance alone. However, the Supreme Court upheld ICC's order stating that while companies have some freedom in pricing their services, they cannot engage in unjust discrimination between places served by them. It ruled that if a carrier has established certain rates for transportation of goods from point A to B via one route then it must maintain reasonably consistent charges when transporting same goods between same points via a different route under its control unless there are valid reasons justifying such difference.

In the dissenting opinion for Cincinnati, Hamilton and Dayton Railway Company v. Interstate Commerce Commission, it was argued that the court majority had overstepped its bounds by interpreting an act of Congress in a way that effectively rewrote legislation. The dissenters believed that the law as written did not give the Interstate Commerce Commission (ICC) authority to regulate railway rates or determine what constituted 'reasonable' charges. They contended this power rested solely with Congress under constitutional provisions governing interstate commerce regulation. Furthermore, they expressed concern about potential infringement on states' rights if federal agencies like ICC were allowed unchecked regulatory powers over local industries such as railways operating within state boundaries but also engaging in interstate trade activities.