The U.S. Supreme Court case Georgia Public Service Commission et al. v. United States et al., 1930, revolved around the conflict between state and federal jurisdiction over railroad rates for intrastate commerce. The Georgia Public Service Commission had established certain freight rates that were lower than those set by the Interstate Commerce Commission (ICC). The ICC sued to have their higher rates enforced, arguing that the lower state-set rates negatively impacted interstate commerce by creating an imbalance in revenue generation from different states' railroads operations. The Supreme Court ruled in favor of the ICC, stating that when a clear and direct effect on interstate commerce is demonstrated - as was shown through evidence presented about financial imbalances - then federal law takes precedence over state law under the Commerce Clause of Constitution.

In the dissenting opinion for Georgia Public Service Commission et al. v. United States et al., it was argued that the federal government did not have jurisdiction over intrastate commerce, which in this case involved a dispute about rates charged by an interstate carrier for purely local services within Georgia. The dissenting justices believed that while Congress had power to regulate interstate commerce, it could not interfere with state regulation of strictly internal affairs and businesses operating solely within their borders. They contended that allowing such interference would undermine states' rights and upset the balance of powers between federal and state governments as established by the Constitution. Furthermore, they expressed concern about potential negative impacts on local economies if states were unable to control rates charged by companies operating exclusively within their territories.