In the 1910 case of State of Oklahoma on the Relation of West, Attorney General v. Chicago, Rock Island and Pacific Railway Company, the Supreme Court was tasked with determining whether a state law could regulate interstate commerce rates for railroads. The state of Oklahoma had passed legislation that set maximum freight rates for intrastate transportation by railroads operating within its borders. However, this conflicted with federal laws regulating interstate commerce which allowed higher charges than those permitted under Oklahoma's statute. The railway company argued that it should be able to charge uniform rates across states as per federal regulations. The Supreme Court ruled in favor of the railway company stating that while states have power over local matters including some aspects of railroad operations within their boundaries, they cannot interfere or conflict with powers granted to Congress by Constitution such as regulation over interstate commerce. Therefore, when there is a conflict between state and federal laws regarding these issues like rate-setting for railways involved in both intra- and inter-state trade; Federal law prevails due to supremacy clause enshrined in U.S constitution.

In the dissenting opinion for the case of State of Oklahoma on the Relation of West, Attorney General v. Chicago, Rock Island and Pacific Railway Company (1910), Justice Harlan argued that railroads should not be allowed to set their own rates without any state regulation or oversight. He believed that states have a constitutional right to regulate businesses within their borders in order to protect public interests. In his view, allowing railroads to operate without any restrictions would lead to monopolistic practices and exploitation of consumers through unfair pricing strategies. Furthermore, he contended that if states were unable to exercise this regulatory power due to federal preemption as suggested by majority's ruling, it could undermine state sovereignty and disrupt balance between federal-state powers enshrined in U.S constitution.