In the case of Pfister v. Northern Illinois Finance Corp., 1942, the U.S Supreme Court ruled in favor of Northern Illinois Finance Corp. The dispute arose when Pfister, a farmer who had taken out loans from Northern Illinois Finance Corporation to buy cattle and feed, declared bankruptcy during the Great Depression. He argued that his debt should be discharged under Section 75(s) of the Bankruptcy Act - an amendment designed to help farmers keep their property by allowing them to pay off their debts over time rather than all at once. However, this argument was rejected by both lower courts and eventually by the Supreme Court as well because it was determined that he did not qualify for relief under Section 75(s). This section only applied if a debtor's primary income came from farming operations which wasn't true in Pfister’s case since most of his income came from renting out farmland rather than actual farming activities. The court also noted that even if he were eligible for relief under this provision, it would not have helped him because he owed more money on his farm than it was worth; hence discharging some or all of his debt wouldn’t have saved him from losing his property.

In the dissenting opinion for Pfister v. Northern Illinois Finance Corp., Justice Frank Murphy argued that the majority's decision was a misinterpretation of Section 77B of the Bankruptcy Act, which he believed should be read to include corporations in receivership. He contended that this interpretation would better align with Congress' intent to provide broad relief and protection for debtors during financial distress. Furthermore, he disagreed with the majority’s view on state law supremacy over federal bankruptcy laws in this context, arguing instead that federal law should prevail when it comes to matters related to insolvency or bankruptcy proceedings. In his view, allowing state courts and their appointed receivers control over insolvent corporations could lead to inconsistent results across states and undermine uniformity in national bankruptcy policy.