In the case of Louisville & Nashville Railroad Company v. United States in 1926, the Supreme Court ruled on a dispute involving railroad rates for interstate commerce. The Interstate Commerce Commission (ICC) had ordered reduced rates on certain goods transported between southern and eastern states, which were challenged by several railroads including the Louisville & Nashville Railroad Company. They argued that these reductions were arbitrary and would result in revenue losses. However, the Supreme Court upheld ICC's decision stating it was within its power to set reasonable rates for interstate transportation under the Interstate Commerce Act of 1887. The court also noted that while rate changes may affect company profits, this alone does not make them unlawful or unjustifiable if they are otherwise fair and just in relation to public interest.

In the dissenting opinion for Louisville & Nashville Railroad Company v. United States, it was argued that the Interstate Commerce Commission (ICC) had overstepped its authority by ordering a reduction in rates without sufficient evidence of unreasonableness or discrimination. The dissenters contended that while Congress did grant ICC power to regulate interstate commerce, this power should not be interpreted as absolute and unchecked. They believed that such an interpretation would infrive upon constitutional rights of due process under law. Furthermore, they asserted that ICC's decision was based on mere speculation rather than concrete proof of unfairness or prejudice against shippers or consumers which is required before any rate change can be ordered according to them.