The U.S. Supreme Court case Penn Refining Company, Limited v. Western New York and Pennsylvania Railroad Company in 1907 revolved around a dispute over freight charges for oil transportation. The Penn Refining Company claimed that the railroad company had charged them excessive rates for transporting their oil products from Pennsylvania to New York, violating the Interstate Commerce Act which prohibits unreasonable and discriminatory pricing practices by railroads. The court ruled in favor of the railroad company, stating that while there was evidence of higher rates being charged to Penn Refining compared to other companies, it did not constitute discrimination as defined under the act because these differences were due to varying conditions such as distance travelled or volume transported rather than any unfair treatment towards specific shippers.

In the dissenting opinion for Penn Refining Company, Limited v. Western New York and Pennsylvania Railroad Company, it was argued that the majority's decision to allow a railroad company to charge different rates based on distance traveled rather than quantity of oil transported was unjust. The dissenting justices believed this ruling violated principles of fairness in commerce by allowing railroads to discriminate against certain customers. They contended that charging more per mile for shorter distances could unfairly disadvantage smaller businesses or those located closer to refineries, thereby stifling competition and potentially violating antitrust laws. Furthermore, they disagreed with the majority's interpretation of "reasonable" rates under Interstate Commerce Act regulations as being solely dependent on distance traveled rather than other factors such as volume or type of goods transported.