The U.S. Supreme Court case Railroad Commission of Texas et al. v. Eastern Texas Railroad Company et al., 1923, involved the question of whether a state could regulate intrastate railroad rates to such an extent that it would interfere with interstate commerce and violate the Commerce Clause of the Constitution. The Eastern Texas Railroad Company argued that regulations imposed by the Railroad Commission of Texas were so burdensome as to infringe upon its ability to conduct business across state lines effectively, thus violating federal law governing interstate commerce. However, in this landmark decision, the Supreme Court upheld states' rights to regulate businesses within their borders even if those regulations might indirectly affect interstate trade or transportation operations.

The dissenting opinion in the case of Railroad Commission of Texas et al. v. Eastern Texas Railroad Company et al., 1923, argued that the majority's decision was a significant overreach into state affairs by federal courts and an infringement on states' rights to regulate their own industries. The dissenters believed that it was not within the purview of federal courts to determine whether or not a state regulation is reasonable, as long as it does not violate any constitutional provisions or interfere with interstate commerce. They maintained that such decisions should be left to state authorities who are more familiar with local conditions and needs than distant federal judges could ever be. Furthermore, they contended that if every aggrieved party were allowed to seek redress from federal courts for perceived unreasonable regulations, it would lead to chaos and undermine states' authority.