In the case of Delaware, Lackawanna and Western Railroad Company v. United States in 1913, the U.S Supreme Court ruled on a dispute involving railroad freight rates. The Interstate Commerce Commission (ICC) had ordered the Delaware, Lackawanna and Western Railroad Company to reduce its coal shipping rates as they were deemed unreasonable and discriminatory. The railroad company challenged this order arguing that it was an infringement upon their property rights without due process of law under the Fifth Amendment. However, the Supreme Court upheld ICC's decision stating that public interest is paramount over private interests in matters concerning interstate commerce regulation. Therefore, if a rate has been declared unreasonable by ICC after proper investigation and hearing then courts should not interfere unless there is clear evidence showing lack of fair play or abuse of power by ICC.

In the dissenting opinion for Delaware, Lackawanna and Western Railroad Company v. United States (1913), Justice Holmes argued that the Interstate Commerce Commission did not have the authority to regulate railroad rates in this case. He believed that Congress had only given them power to prevent unreasonable or discriminatory prices, but not to set specific rates themselves. Furthermore, he contended that even if they were granted such powers by Congress, it would be unconstitutional as it would violate due process rights of railroads under the Fifth Amendment. The majority's decision was based on their interpretation of "just and reasonable" rates which Holmes disagreed with; he felt there could be a range of fair prices rather than one fixed rate determined by a regulatory body like ICC without judicial review or oversight.