In the 1921 case of State of New York et al. v. United States, Clark et al., and Lehigh Valley Railroad Company et al., the U.S Supreme Court ruled in favor of the federal government's authority to regulate interstate commerce over state-level objections. The dispute arose when New York and other states challenged an Interstate Commerce Commission (ICC) order that increased freight rates by a general average advance of approximately 33⅓ percent across all eastern trunk line railroads, including Lehigh Valley Railroad Company among others. The states argued this was an unlawful delegation of legislative power and violated their rights under due process clause as it would adversely affect local industries and consumers with higher costs for goods transported via these railroads. However, the court upheld ICC's decision stating that such regulation is within Congress’s constitutional powers to ensure uniformity in interstate commerce regulations.

The dissenting opinion in the case of State of New York et al. v. United States, Clark et al., constituting the Interstate Commerce Commission, and (intervening) Lehigh Valley Railroad Company et al., argued that the majority's decision to uphold federal regulations over state laws was a violation of states' rights under the Constitution. The dissenters believed that each state should have control over its own commerce and trade practices within its borders without interference from federal agencies like the Interstate Commerce Commission. They also disagreed with allowing an intervening party such as a railroad company to influence decisions related to interstate commerce regulation at a national level, arguing this could lead to potential conflicts of interest or unfair advantages for certain industries or companies.