The U.S. Supreme Court case Knott et al., Railroad and Warehouse Commissioners, v. St. Louis, Kansas City and Colorado Railroad Co., 1912 revolved around the issue of whether a state has the authority to regulate interstate commerce rates for railroads operating within its borders. The plaintiffs were railroad commissioners from Minnesota who had set maximum freight rates that they believed were fair and reasonable for all parties involved - both shippers and railroads alike. However, the defendant, a railroad company operating in multiple states including Minnesota, argued that this was an overreach of state power as it interfered with their ability to conduct business across state lines under federal law governing interstate commerce. In its decision, the Supreme Court sided with the railroad company stating that while states do have some regulatory powers over businesses within their borders; these powers cannot infringe upon or conflict with federal laws regulating interstate commerce which is constitutionally vested in Congress alone.

The dissenting opinion in the case of Knott et al., Railroad and Warehouse Commissioners, v. St. Louis, Kansas City and Colorado Railroad Co., argued that the majority's decision was a departure from established principles of law regarding state regulation of railroads. The dissent contended that states have traditionally had broad authority to regulate railroad rates within their borders, subject only to federal preemption where interstate commerce is involved. In this case, however, the court ruled in favor of a private corporation over a state regulatory body without clear evidence that federal interests were at stake or being harmed by the state's actions. This shift towards prioritizing corporate rights over states' powers was seen as problematic by those who dissented.