In the 1933 case of State Corporation Commission of Kansas v. Wichita Gas Co., the U.S. Supreme Court ruled in favor of the gas company, stating that it was unconstitutional for a state to regulate natural gas prices when those prices were set by interstate commerce agreements. The court found that such regulation would interfere with interstate commerce and thus violate the Commerce Clause of the Constitution. This decision established an important precedent regarding states' rights and federal power over interstate commerce, asserting that while states have authority to regulate within their borders, they cannot infrally on federally regulated areas like interstate trade.

In the dissenting opinion for the case of State Corporation Commission of Kansas v. Wichita Gas Co., Justice Brandeis argued that the majority's decision to strike down a state law regulating gas prices was an overreach, infringing upon states' rights to regulate their own industries and economies. He contended that it is not within the jurisdiction of federal courts to determine whether a state regulation is reasonable or justifiable; rather, this responsibility lies with state authorities who are better equipped and informed about local conditions and needs. Furthermore, he expressed concern that such interference by federal courts could undermine public confidence in both judicial systems and regulatory bodies at large. In his view, unless there is clear evidence showing constitutional violation or abuse of power by states in setting regulations, federal intervention should be avoided.