The U.S. Supreme Court case New York, New Haven and Hartford Railroad Company v. Interstate Commerce Commission in 1905 revolved around the issue of whether or not the Interstate Commerce Commission (ICC) had the authority to regulate railroad rates for interstate commerce under its statutory powers granted by Congress. The plaintiff, a railroad company, argued that ICC's rate-setting was an unconstitutional overreach of power as it interfered with their property rights without due process of law. However, the court upheld ICC's regulatory authority stating that railroads were engaged in public service and thus subject to regulation for public interest purposes. This decision affirmed that Congress could delegate regulatory powers to administrative agencies like ICC within constitutional limits and set a precedent for future cases involving federal regulation of private industries.

In the dissenting opinion for New York, New Haven and Hartford Railroad Company v. Interstate Commerce Commission, it was argued that the court majority had overstepped its authority by interpreting the law in a way that allowed them to interfere with business operations of private companies. The dissenters believed this interpretation violated constitutional principles of limited government and free enterprise. They contended that while Congress has power to regulate interstate commerce, it does not have unlimited discretion to do so at will without regard for property rights or due process protections guaranteed under the Constitution. Furthermore, they asserted that if there were any ambiguities in legislation related to regulating railroads or other businesses involved in interstate commerce, these should be resolved by legislative action rather than judicial reinterpretation.