In the 1935 case of Terminal Warehouse Co. v. Pennsylvania Railroad Co., the US Supreme Court ruled in favor of Pennsylvania Railroad and other railroads, dismissing a complaint filed by Terminal Warehouse Company. The warehouse company had accused the railroads of violating antitrust laws by refusing to provide them with cars for loading unless they agreed to certain conditions that would limit their business operations, such as not allowing them to load or unload goods from competing railroad companies' cars at their facilities. However, the court found no evidence supporting these claims and concluded that there was no violation of antitrust laws because it is within a railroad's rights to refuse service under reasonable circumstances without being considered discriminatory or monopolistic behavior.

In the dissenting opinion for Terminal Warehouse Co. v. Pennsylvania Railroad Co., Justice Stone argued that the majority's decision to uphold a railroad company's right to refuse service to a warehouse company was inconsistent with previous interpretations of the Interstate Commerce Act. He contended that railroads, as common carriers, have an obligation under this act to provide reasonable and nondiscriminatory services upon request unless they can demonstrate substantial reasons for refusal beyond mere convenience or preference. In his view, allowing railroads such discretion would undermine competition and potentially lead to monopolistic practices by enabling them to choose their customers based on factors other than capacity or demand. Furthermore, he expressed concern about potential harm caused by unchecked power in hands of large corporations like railroads which could adversely affect smaller businesses dependent on their services.