In the case of Missouri Pacific Railway Company v. Nebraska, 1896, the U.S. Supreme Court ruled in favor of the railway company and against a law enacted by Nebraska's state legislature that set maximum rates for freight and passenger transportation on railroads within its jurisdiction. The court held that this law was unconstitutional as it violated due process rights under the Fourteenth Amendment by not providing an opportunity for judicial review before being enforced. Furthermore, it infringed upon interstate commerce laws because it attempted to regulate prices beyond state borders - something only Congress has authority over according to federal constitution. This decision reinforced limits on states' power to control private industries operating across multiple jurisdictions.

In the dissenting opinion for Missouri Pacific Railway Company v. Nebraska, it was argued that the state of Nebraska had a right to regulate railway rates within its borders. The dissenting justices believed that railroads were public highways and thus subject to regulation by individual states. They disagreed with the majority's interpretation of interstate commerce, arguing instead that while Congress has power over interstate commerce, this does not exclude concurrent authority in the states when their actions do not conflict with federal law or impede interstate commerce. Therefore, they contended that Nebraska's rate-setting did not interfere with interstate trade but merely regulated an internal affair of the state – i.e., transportation costs within its boundaries - which should be under its control as per principles of federalism and sovereignty.