In the 1943 case of Interstate Commerce Commission et al. v. Hoboken Manufacturers' Railroad Co., the U.S Supreme Court ruled in favor of the Interstate Commerce Commission (ICC). The dispute arose when ICC ordered Hoboken Manufacturers' Railroad Company to stop charging shippers for services that were already covered under a different fee, arguing it was an unfair practice and violated federal law. The railroad company challenged this order, claiming that ICC lacked jurisdiction because their operations were entirely within New Jersey state lines and did not involve interstate commerce. However, the Supreme Court held that even though its operations were intrastate, they still had a direct effect on interstate commerce due to their connection with other railroads involved in such trade; thus falling under federal regulation by ICC according to Congress's power over interstate commerce granted by Constitution's Commerce Clause.

The dissenting opinion in the case of Interstate Commerce Commission et al. v. Hoboken Manufacturers' Railroad Co., 1943, argued that the majority's decision to allow federal regulation over intrastate railroad rates was an overreach of power by the Interstate Commerce Commission (ICC). The dissenters believed that this ruling violated states' rights and disrupted a balance between state and federal powers established by previous court decisions. They contended that while it is necessary for ICC to have some control over interstate commerce, extending its jurisdiction into purely local matters would lead to unnecessary interference with state affairs. Furthermore, they expressed concerns about potential negative impacts on small businesses like Hoboken Manufacturers’ Railroad Company due to increased regulatory burdens imposed by such broad interpretation of ICC’s authority.