In the 1930 case of Great Northern Railway Co v. Delmar Co., the United States Supreme Court ruled in favor of Great Northern Railway Company, reversing a decision made by the Circuit Court of Appeals for the Ninth Circuit. The dispute arose over land rights and mineral extraction; specifically, whether or not Delmar Company had a right to mine coal from beneath lands granted to Great Northern Railway by Congress in 1864. The court held that under this grant, only surface rights were conveyed and not subsurface minerals such as coal or oil. Therefore, it was determined that Delmar did not have legal authority to extract these resources without permission from Great Northern Railway who owned those rights.

In the dissenting opinion for the Great Northern Railway Co v. Delmar Co case, Justice Stone argued that the majority's decision was inconsistent with previous rulings and established principles of law. He contended that a railroad company should not be allowed to abandon its line without approval from state authorities or compensation to affected parties, as this would violate public interest and property rights. Furthermore, he disagreed with the majority's interpretation of federal laws governing railroads' obligations towards their customers and communities they serve. According to him, these laws were intended to ensure continuity of service rather than enabling unilateral discontinuation by companies at will. Therefore, he believed that allowing such abandonment without due process would undermine regulatory oversight and compromise fairness in dealings between railroads and other stakeholders.