The Omaha & Council Bluffs Street Railway Company v. Interstate Commerce Commission case in 1912 revolved around the jurisdiction of the Interstate Commerce Commission (ICC) over street railways. The Omaha & Council Bluffs Street Railway Company operated a line that crossed state lines, from Nebraska to Iowa, and was therefore subject to regulation by the ICC. However, they argued that their primary function was local passenger traffic rather than interstate commerce and should not be under federal control. The Supreme Court disagreed with this argument stating that since part of its operation involved crossing state lines, it fell within interstate commerce regardless of its main function or volume of business conducted across states. Therefore, it upheld ICC's authority to regulate such companies even if their operations are primarily intrastate but involve some degree of interstate activity.

In the dissenting opinion for Omaha & Council Bluffs Street Railway Company v. Interstate Commerce Commission, it was argued that the majority's decision to uphold federal regulation of intrastate commerce conflicted with previous court decisions and infringed on states' rights. The dissenters believed that the interstate nature of a business should not automatically subject all its operations, including those within state borders, to federal control. They contended that this interpretation could lead to an overreach of federal power into areas traditionally governed by state law. Furthermore, they expressed concern about potential negative impacts on businesses forced to comply with two sets of regulations - one from their home state and another from the federal government.