In the case of The New York Central Securities Corporation v. The United States of America, et al., 1932, the Supreme Court was asked to consider whether a reorganization plan for a railroad company approved by the Interstate Commerce Commission (ICC) violated due process rights under the Fifth Amendment. This came after New York Central Railroad Company had defaulted on its financial obligations and sought approval from ICC for its restructuring plan which involved converting bonds held by New York Central Securities Corporation into stocks with lesser value. The securities corporation objected this move arguing that it would result in significant losses to them without fair compensation thus violating their constitutional rights. The Supreme Court ruled against the securities corporation stating that there was no violation of due process as long as ICC's decision was not arbitrary or unreasonable and provided an opportunity for all parties to be heard before making its decision. It further noted that while bondholders might suffer some loss in such reorganizations, they were also protected from total loss since they could potentially benefit if the company became profitable again post-restructuring.

In the dissenting opinion for The New York Central Securities Corporation v. The United States of America, it was argued that the Interstate Commerce Commission (ICC) had overstepped its authority by ordering a reorganization of the railroad company's financial structure without sufficient evidence to justify such an action. It was contended that while Congress gave ICC regulatory power over railroads, this did not include arbitrary control over their finances or business operations unless there were clear abuses or violations present. In this case, no such issues were identified and thus, it was believed that ICC’s decision amounted to unwarranted interference in private business affairs. Furthermore, it was pointed out that if every disagreement between a corporation and its minority shareholders could be taken up with federal authorities for resolution as seen here, then corporations would essentially become public utilities subject to governmental control rather than independent entities operating within legal boundaries set by law.