In Memphis & Charleston Railroad Company v. United States, the Supreme Court was asked to decide whether the United States had the right to take possession of a railroad line owned by the Memphis & Charleston Railroad Company. The railroad line in question was part of a larger network of railroads that had been built by the federal government in the late 19th century. The government had taken possession of the line in order to build a new railroad line that would connect the East Coast with the West Coast. The Memphis & Charleston Railroad Company argued that the government had no right to take possession of their railroad line without just compensation. The company argued that the taking of their property was a violation of the Fifth Amendment of the United States Constitution, which states that private property shall not be taken for public use without just compensation. The Supreme Court agreed with the Memphis & Charleston Railroad Company and held that the government had violated the Fifth Amendment by taking possession of the railroad line without just compensation. The Court held that the government must pay the company just compensation for the taking of their property. The Court also held that the government must pay the company for any damages that were caused by the taking of their property.

In Memphis & Charleston Railroad Company v. United States, the Supreme Court was asked to decide whether a railroad company had violated federal law by charging higher rates for freight than those set out in its charter. The majority of the court held that it did not violate any laws and thus affirmed the lower court's decision. Justice Field dissented from this opinion, arguing that Congress had intended to protect interstate commerce by setting maximum rates for railroads and that allowing companies to charge more than these limits would be detrimental to competition between states. He argued further that if such practices were allowed, then other forms of transportation could also raise their prices without consequence which would lead to an increase in costs across all modes of transport and ultimately hurt consumers who rely on them for goods or services.