In the case of Illinois Central Railroad Company v. Henderson Elevator Company, 1912, the U.S Supreme Court ruled in favor of Henderson Elevator Company. The dispute arose when Illinois Central Railroad refused to provide cars for grain shipment from Henderson's elevator due to a shortage during peak harvest time. The railroad company argued that it was not obligated to supply cars because they were not available and also cited an "Act of God" clause as defense against their inability to fulfill contractual obligations. However, the court held that under common carrier law, railroads are required to serve all customers without discrimination and must make reasonable efforts even under difficult circumstances such as car shortages or other unforeseen events like natural disasters (Acts of God). Therefore, by failing to provide service equally among its customers including Henderson Elevator Co., Illinois Central had violated this principle.

In the dissenting opinion for Illinois Central Railroad Company v. Henderson Elevator Company, Justice Holmes disagreed with the majority's interpretation of a contract between the two parties. He argued that it was not reasonable to assume that Illinois Central intended to give up its right to charge what it pleased for switching services when entering into an agreement with Henderson Elevator. The justice believed this would be tantamount to giving away part of its business without clear language in the contract indicating such intent. Furthermore, he contended that if there were any ambiguity in interpreting contractual terms, they should be construed against Henderson as it drafted and proposed them initially. Thus, according to Justice Holmes' view, Illinois Central should have been allowed by law to increase their rates for switching services provided under their agreement with Henderson Elevator.