In the case of Grand Trunk Western Railway Company v. City of South Bend, 1912, the U.S Supreme Court was tasked with determining whether a city ordinance requiring railway companies to install and maintain safety gates at railroad crossings infringed upon interstate commerce regulations. The Grand Trunk Western Railway Company argued that this requirement placed an undue burden on them and interfered with their ability to conduct business across state lines. However, the court ruled in favor of the City of South Bend, stating that such local ordinances were within a municipality's power as long as they did not directly conflict with federal laws or excessively burden interstate commerce. In this instance, it was determined that ensuring public safety by reducing accidents at railroad crossings outweighed any potential inconvenience or cost incurred by railway companies.

In the dissenting opinion for Grand Trunk Western Railway Company v. City of South Bend, it was argued that the city's ordinance requiring railway companies to install and maintain safety gates at street crossings did not constitute an undue burden on interstate commerce. The dissenting justices contended that such regulations were within a municipality's police power to protect public safety and welfare. They further asserted that this local regulation did not conflict with federal law or impede the free flow of commerce between states but merely sought to prevent accidents at railroad crossings within city limits. Therefore, they believed it should be upheld as a valid exercise of municipal authority over local matters.