In the case of Lemke, as Attorney General of the State of North Dakota, et al. v. Farmers Grain Company of Embden, North Dakota (1921), the U.S Supreme Court ruled in favor of Farmers Grain Company. The court found that a state law which allowed a state commission to set maximum prices for services provided by grain elevators was unconstitutional because it violated due process rights under the Fourteenth Amendment and interfered with interstate commerce. The decision upheld that states cannot regulate rates charged by businesses involved in interstate commerce unless such regulation is authorized by Congress or does not interfere with interstate trade.

The dissenting opinion in the case of Lemke v. Farmers Grain Company argued that the North Dakota law, which regulated grain elevators and mills, did not violate due process or equal protection clauses of the Fourteenth Amendment. The justices believed that states have a right to regulate businesses within their borders for public welfare purposes. They contended that it was within North Dakota's power to establish regulations on grain storage charges as long as they were reasonable and non-discriminatory. Furthermore, they disagreed with the majority's view that this regulation interfered with interstate commerce since it only affected intrastate business operations; hence there was no violation of federal jurisdiction over interstate commerce matters.