The case of United States, Interstate Commerce Commission, and Federal Sugar Refining Company v. The Baltimore and Ohio Railroad Company in 1911 revolved around the issue of discriminatory pricing by railroads. The Baltimore & Ohio Railroad had been charging higher rates for shorter hauls than longer ones on similar types of freight, which was deemed unjustly discriminatory under the Interstate Commerce Act. This practice disadvantaged local shippers who were charged more per mile than those shipping over long distances. The Supreme Court ruled that such practices constituted an unfair trade practice and violated federal law prohibiting undue or unreasonable preference or advantage in commerce matters. Thus, it upheld the decision made by the Interstate Commerce Commission to regulate railroad rates to prevent discrimination against short-haul routes.

The dissenting opinion in this case argued that the Interstate Commerce Commission (ICC) did not have the authority to mandate a specific rate for railroads. The justices believed that such power was beyond what Congress intended when it established the ICC, and they feared it could lead to arbitrary price setting by government agencies. They also expressed concern about potential violations of due process rights if companies were forced to comply with rates set by an administrative agency without having sufficient opportunity for judicial review. Furthermore, they disagreed with majority's interpretation of "just and reasonable" standard applied in determining railroad rates, arguing instead for a more flexible approach which would take into account various factors including market conditions and profitability of businesses involved.