In the 1930 case of Louisville & Nashville Railroad Company et al. v. United States et al., the U.S Supreme Court upheld a decision by the Interstate Commerce Commission (ICC) to allow railroads to increase their freight rates due to economic hardship during the Great Depression. The railroad companies had argued that they were entitled to higher rates because of increased operating costs and decreased revenues, while shippers opposed these increases arguing it would harm commerce. The ICC sided with the railroads, allowing them a temporary rate increase for six months in order for them to recover financially from their losses during this period of economic downturn. This decision was appealed but ultimately affirmed by the Supreme Court which held that such decisions fell within ICC's authority and expertise.

In the dissenting opinion for Louisville & Nashville Railroad Company v. United States, Justice Stone argued that the Interstate Commerce Commission (ICC) had overstepped its bounds by ordering a reduction in freight rates without sufficient evidence or justification. He contended that the ICC's decision was arbitrary and lacked substantial support from economic data or expert testimony. Furthermore, he criticized the majority's deference to administrative agencies like the ICC, warning against unchecked bureaucratic power and advocating for judicial review as a necessary check on potential abuses of discretion by these bodies. In his view, courts should not merely rubber-stamp decisions made by administrative agencies but rather scrutinize them closely to ensure they are reasonable and supported by adequate evidence.