In the 1890 case of Covington Stock-Yards Company v. Keith, the United States Supreme Court ruled in favor of Covington Stock-Yards Company. The dispute arose when Keith, a cattle dealer from Kentucky, refused to pay yardage fees imposed by the company for using its facilities to house and feed his livestock before sale. He argued that these charges were illegal under Kentucky law which prohibited stockyard companies from charging both yardage and commission on sales made within their premises. However, the court held that this state law did not apply as it was superseded by an earlier federal statute allowing such charges provided they were reasonable and just. Therefore, since there was no evidence suggesting that Covington's rates were excessive or unfair, Keith was obligated to pay them.

In the dissenting opinion for Covington Stock-Yards Company v. Keith, it was argued that the majority's decision to uphold a state law requiring stockyards to charge only "reasonable" rates and allowing courts to determine what constitutes as reasonable is an overreach of judicial power. The dissenting justices believed this ruling effectively turned judges into rate-setting commissioners, which they viewed as inappropriate and beyond their constitutional authority. They contended that such decisions should be left up to legislative bodies or designated regulatory agencies with expertise in economic matters rather than being decided by courts. Furthermore, they expressed concern about potential negative impacts on businesses if courts were allowed to interfere excessively in their operations based on subjective interpretations of reasonableness.