In the case of Detroit and Mackinac Railway Company v. Michigan Railroad Commission and Fletcher Paper Company, 1915, the Supreme Court was asked to determine whether a state railroad commission had the authority to set freight rates for intrastate commerce that were lower than those established by federal law for interstate commerce. The Detroit and Mackinac Railway Company argued that this constituted an undue burden on interstate commerce in violation of the Commerce Clause of the U.S Constitution. However, after reviewing both sides' arguments, Justice Hughes ruled against them stating that there was no evidence showing such a burden existed due to these different rate structures. He also emphasized that states have considerable power over their own internal trade as long as it does not interfere with or discriminate against interstate commerce.

The dissenting opinion in the case of Detroit and Mackinac Railway Company v. Michigan Railroad Commission and Fletcher Paper Company argued that the court majority had overstepped its jurisdiction by interfering with a state's right to regulate its own industries. The dissenters believed that the Michigan Railroad Commission was within its rights to order a reduction in freight rates, as it was acting under authority granted by the state legislature. They contended that this issue should be resolved at a local level rather than being decided upon by federal courts, which they felt were not equipped to make judgments on matters of local industry regulation. Furthermore, they expressed concern about setting a precedent for future cases where federal courts could potentially interfere with states' rights without proper justification or cause.