The U.S. Supreme Court case St. Louis, Iron Mountain & Southern Railway Company et al. v. J.F Hasty & Sons, et al., 1920 revolved around a dispute over the payment of freight charges for cotton shipments by the railway company to Hasty and Sons during World War I when federal control was exercised over railroads under President Woodrow Wilson's administration (1917-1920). The main issue in contention was whether or not the railroad companies could collect these charges from shippers despite being under federal control at that time due to wartime exigencies. The court ruled in favor of the railway companies stating that they were entitled to receive their rates without any deductions even though they were operating under federal control as per an agreement with United States Railroad Administration (USRA), which had been established by President Wilson using his war powers authority granted by Congress through Federal Control Act.

In the dissenting opinion for the case of St. Louis, Iron Mountain & Southern Railway Company et al. v. J.F Hasty & Sons, et al., it was argued that the court erred in its decision to uphold a state law requiring railroads to provide separate but equal accommodations for black and white passengers. The dissenting justices believed this ruling violated both the Commerce Clause and Fourteenth Amendment of the Constitution by allowing states to regulate interstate commerce and enforce racial segregation respectively. They contended that such laws were not only discriminatory but also detrimental to business as they imposed additional costs on railroad companies who had no choice but comply with them or face penalties under state law.