The U.S. Supreme Court case Pennsylvania System Board of Adjustment of the Brotherhood of Railway and Steamship Clerks, etc. v. Pennsylvania Railroad Company et al., 1924 revolved around a dispute between the railway company and its employees' union over wage adjustments under the Transportation Act (1920). The railroad company had made unilateral changes to wages without consulting or negotiating with the union, which led to this lawsuit by the latter party. The court ruled in favor of the railroad company stating that it was within their rights as an employer to make such decisions regarding wages unilaterally according to Section 301(a) of said act, provided they were not discriminatory or unfair practices against any particular group or class among their employees.

The dissenting opinion in the case of Pennsylvania System Board of Adjustment of The Brotherhood of Railway and Steamship Clerks etc. v. Pennsylvania Railroad Company et al., 1924, argued that the majority's decision was a misinterpretation of the Transportation Act. They believed that Congress intended for disputes between employees and railroads to be settled by an arbitration board, not through litigation in federal courts. This interpretation would ensure speedy resolution to labor disputes without disrupting interstate commerce or causing undue hardship on workers who could ill afford prolonged legal battles against powerful railroad companies. Furthermore, they contended that allowing such cases to proceed in court undermined the authority and purpose of these boards as established under federal law.