In the case of Smith v. Interstate Commerce Commission (1917), the U.S Supreme Court was tasked with determining whether or not the Interstate Commerce Commission had overstepped its authority by ordering a railroad company to cease discriminatory practices against black passengers. The plaintiff, Mr. Smith, argued that he and other African American passengers were being unfairly treated by Southern Railway Company despite paying equal fare as white passengers for first-class tickets. He claimed they were provided inferior accommodation and services compared to their white counterparts which violated his rights under the Interstate Commerce Act of 1887. The court ruled in favor of Mr. Smith stating that such racial discrimination indeed constituted an unjust practice under said act, thereby affirming ICC's order for cessation of these discriminatory practices by Southern Railway Company. This landmark decision underscored federal government’s commitment towards ensuring equality in public accommodations irrespective of race during a time when segregation was prevalent across several states in America.

In the dissenting opinion for Smith v. Interstate Commerce Commission, it was argued that the Supreme Court should not have jurisdiction over this case as it pertains to a matter of administrative law and regulatory oversight, which is within the purview of the Interstate Commerce Commission (ICC). The ICC's decision to allow certain railroad companies to increase their freight rates was based on its expert understanding and interpretation of complex economic conditions affecting these businesses. It was contended that such decisions are best left with specialized agencies like ICC rather than courts. Furthermore, there were concerns about judicial overreach and undermining regulatory authorities' autonomy in making informed decisions within their areas of expertise. This could set a dangerous precedent where courts might feel emboldened to interfere in matters they may lack comprehensive knowledge or understanding about.