The U.S. Supreme Court case Long Island Rail Road Co. v. Aberdeen & Rockfish Railroad Co., et al., 1978, revolved around the issue of whether or not a railroad company could be held responsible for paying reparations to other rail companies under the Interstate Commerce Act (ICA). The Long Island Rail Road Company was ordered by the Interstate Commerce Commission (ICC) to pay reparations to several smaller railroads after it was found that they had been overcharging them for joint rates on freight traffic. The Long Island Rail Road Company argued that since it wasn't directly involved in setting these rates, it shouldn't be liable for any reparation payments. However, the Supreme Court ruled against this argument and upheld ICC's decision stating that under ICA all participating carriers are jointly and severally liable for unreasonable joint rates regardless of their role in setting those rates. This ruling emphasized on maintaining fair competition among railway companies while protecting small carriers from being exploited by larger ones.

In the dissenting opinion for Long Island Rail Road Co. v. Aberdeen & Rockfish Railroad Co., Justice Rehnquist disagreed with the majority's interpretation of Section 1(4) of the Interstate Commerce Act, arguing that it did not grant authority to rail carriers to agree on rate divisions without approval from the Interstate Commerce Commission (ICC). He believed that this decision would lead to a significant shift in power from ICC towards private railroad companies and could potentially result in anti-competitive practices. Furthermore, he argued that Congress had intended for ICC oversight over such agreements as part of its broader goal to regulate interstate commerce effectively and prevent monopolistic behavior among railroads.