The case of Independent Coal & Coke Company et al. v. United States et al., 1926, revolved around the issue of whether a railroad company could lawfully charge higher rates for shorter distances compared to longer ones under the Interstate Commerce Act. The plaintiffs, coal companies in Utah, alleged that they were being charged more per mile than their competitors in Wyoming by Union Pacific Railroad and Denver & Rio Grande Western Railroad for shipping coal to Nevada despite having a shorter distance to travel. They claimed this was discriminatory and violated the Interstate Commerce Act's requirement for reasonable and just rates. However, the Supreme Court ruled against them stating that while generally railroads should not charge more per mile over short distances than long ones; exceptions can be made if there are competitive conditions or other factors which justify such differences in charges as reasonable and fair. In this case, it was found that Wyoming had greater competition due to proximity with other states' mines leading to lower prices whereas Utah did not have similar competition hence higher prices were justified even though it was closer geographically.

In the dissenting opinion for Independent Coal & Coke Company v. United States, it was argued that the Interstate Commerce Commission (ICC) had overstepped its authority by setting rates for railroads without considering their individual circumstances and financial health. The justices contended that this approach could potentially lead to bankruptcy for some railroads if they were forced to operate at a loss due to ICC-imposed rates. They also expressed concern about the lack of judicial review or oversight in these decisions, arguing that such unchecked power on part of an administrative body is contrary to principles of fairness and justice. Furthermore, they disagreed with majority's interpretation of 'just and reasonable' standard applied by ICC in rate-setting process as being too vague and subjective which can result into arbitrary decision-making.