In Railroad Company v. United States, the Supreme Court was asked to decide whether the United States had the right to impose a tax on the gross receipts of a railroad company. The railroad company argued that the tax was unconstitutional because it violated the Fifth Amendment's prohibition against taking private property for public use without just compensation. The Supreme Court disagreed, holding that the tax was a valid exercise of the government's power to tax and did not constitute a taking of private property. The Court reasoned that the tax was imposed on the company's gross receipts, not on its property, and that the company was not deprived of its property without just compensation. The Court also noted that the tax was imposed on all railroads, not just the one in question, and that the tax was not so onerous as to constitute a taking. The Court thus held that the tax was constitutional and that the government had the right to impose it.

In Railroad Company v. United States, the Supreme Court was tasked with determining whether a railroad company could be held liable for damages caused by its negligence in failing to provide sufficient warning of an approaching train. The majority opinion found that the railroad company was not liable because it had acted in accordance with accepted standards and practices at the time of the incident. Justice Field dissented from this decision, arguing that regardless of what standard or practice may have been accepted at the time, if there is evidence showing that more caution should have been taken then liability should attach to those who failed to exercise such caution. He argued further that since no one can foresee all potential dangers posed by their actions, they must take reasonable precautions against any foreseeable harm which might arise from them; failure to do so renders them responsible for any resulting damage or injury suffered by another party as a result thereof.