In the case of Texas and Pacific Railway Company v. Saunders in 1893, the U.S Supreme Court was tasked with determining whether a state law could regulate interstate commerce. The dispute arose when Mr. Saunders sued the railway company for damages after they failed to deliver his cattle on time as per their agreement, causing him financial loss due to decreased market value. The railway company argued that it was not liable because its operations were governed by federal laws regulating interstate commerce, which superseded any conflicting state laws under the Commerce Clause of the Constitution. The court ruled in favor of Mr. Saunders stating that while Congress has exclusive authority over interstate commerce, this does not prevent states from exercising their police powers to protect public health and safety unless there is direct conflict with federal legislation or if such regulations interfere with free flow of trade among states. This decision affirmed that although railroads engaged in interstate transportation are instruments of interstate commerce subject to congressional regulation; until Congress acts on it, local delivery remains within domain of state power without violating constitution's Commerce Clause.

In the dissenting opinion for Texas and Pacific Railway Company v. Saunders, Justice Brewer argued that the majority's interpretation of the law was incorrect. He believed that a strict reading of federal laws regarding interstate commerce would not preclude states from regulating rates for intrastate travel, even if those travels began or ended in another state. According to him, as long as there is no direct regulation or control over interstate commerce by the state legislation, it should be allowed to stand. The mere fact that such legislation may indirectly affect such commerce does not necessarily render it invalid under Commerce Clause jurisprudence. Thus he disagreed with the majority’s decision which held that Texas' regulation violated federal law because it regulated part of an interstate journey.