The U.S. Supreme Court case Farmers' Loan and Trust Company v. Lake Street Elevated Railroad Co in 1899 revolved around a dispute over the payment of bonds issued by the Lake Street Elevated Railroad Company (LSERRC). The Farmers' Loan and Trust Company, acting as trustee for bondholders, sued LSERRC when it defaulted on its interest payments due to financial difficulties. LSERRC argued that they were not obligated to pay because their charter allowed them to suspend payments if they were financially unable to do so. However, the court ruled in favor of the Farmers' Loan and Trust Company stating that while corporations have certain rights under their charters, these rights cannot be used as an excuse not to fulfill contractual obligations such as paying debts owed through bonds issuance unless explicitly stated otherwise within said contracts or agreements.

The dissenting opinion in the Farmers' Loan and Trust Company v. Lake Street Elevated Railroad Co case argued that the majority's decision was a departure from established principles of law regarding corporate rights and obligations. The dissent contended that corporations, like individuals, have an inherent right to contract freely without undue interference from government authorities. They believed this principle should extend to contracts involving stock issuance as well. Furthermore, they disagreed with the majority's view that such contracts could be invalidated if deemed unfair or unjust by courts or regulatory bodies - arguing instead for a laissez-faire approach where market forces determine fairness and justice in contractual matters between private parties. This viewpoint held that it is not within the purview of courts to interfere with these agreements unless there is evidence of fraud or illegality involved.