In the case of Seaboard Air Line Railway v. United States in 1920, the Supreme Court ruled on a dispute involving railway rates for shipping freight. The Interstate Commerce Commission (ICC) had ordered reduced rates that were challenged by several railroads including Seaboard Air Line Railway. They argued that these lower rates would not allow them to earn a fair return on their property investment and thus violated due process under the Fifth Amendment. However, the Supreme Court upheld ICC's decision stating it was within its power to set reasonable and just rates for interstate commerce transportation services even if they resulted in decreased profits for railroad companies. It emphasized that public interest must be considered alongside private rights when regulating commerce activities.

The dissenting opinion in the case of Seaboard Air Line Railway v. United States argued that the Interstate Commerce Commission (ICC) did not have the authority to regulate intrastate rates, even if they affected interstate commerce. The dissenters believed this was a matter for state regulation and intervention by federal authorities violated states' rights. They contended that allowing such interference would lead to an imbalance of power between federal and state governments, undermining principles of federalism enshrined in the Constitution. Furthermore, they expressed concern over potential economic consequences as well as practical difficulties arising from dual control over railroads by both state and national bodies.