In the case of Liberty Warehouse Company v. Burley Tobacco Growers' Co-operative Marketing Association, the Supreme Court ruled in 1927 that a Kentucky law allowing tobacco growers to form cooperative associations did not violate antitrust laws. The Liberty Warehouse Company had argued that the Burley Tobacco Growers' Co-operative Marketing Association was monopolizing trade and restricting competition by controlling a large portion of tobacco sales in Kentucky. However, the court found that this arrangement was permissible under state law and did not constitute an unreasonable restraint on trade as defined by federal antitrust legislation. The decision upheld farmers’ rights to organize cooperatives for marketing their products without violating anti-monopoly laws.

In the dissenting opinion for Liberty Warehouse Company v. Burley Tobacco Growers' Co-operative Marketing Association, Justice Stone argued that the Kentucky statute did not violate the Fourteenth Amendment's due process clause as it was a valid exercise of state police power to protect and promote agricultural interests. He contended that there was no unreasonable interference with contractual freedom or property rights since tobacco growers were free to join or leave cooperative associations at will. Furthermore, he believed that warehousemen were not deprived of their liberty or property without due process because they could still operate independently outside these cooperatives if they chose to do so. The law merely regulated how warehouses interacted with such cooperatives in order to prevent potential abuses and exploitation of farmers by monopolistic entities.