The U.S. Supreme Court case United States at the Relation of St. Louis Southwestern Railway Company v. Interstate Commerce Commission et al., 1923, revolved around a dispute between the St. Louis Southwestern Railway Company and the Interstate Commerce Commission (ICC). The railway company challenged an order by ICC that required it to stop charging higher rates for shorter distances than longer ones on its line in Texas, arguing that this was necessary due to competition with other lines for long hauls but lack thereof for short hauls. However, ICC held that such practice violated federal law prohibiting "unjust discrimination" and "undue preference". The Supreme Court upheld ICC's decision stating that while competitive conditions could justify some deviations from distance-based pricing, they did not warrant complete disregard of statutory prohibitions against rate discrimination or preferences.

The dissenting opinion in the case of United States at the Relation of St. Louis Southwestern Railway Company v. Interstate Commerce Commission et al., 1923, argued that the majority's decision to uphold an order by the Interstate Commerce Commission (ICC) was incorrect. The ICC had ordered a reduction in rates for intrastate rail freight transportation within Texas, which were higher than interstate rates for similar services and distances. The dissent contended that this action overstepped federal authority as it interfered with state regulation of commerce within its own borders - something traditionally under state jurisdiction according to principles of federalism enshrined in U.S Constitution. They also expressed concern about potential harm to railway companies due to forced rate reductions without sufficient consideration given to their financial stability or operational costs involved.