In the case of United States v. Baltimore & Ohio Railroad Company, 1913, the U.S. Supreme Court ruled on a dispute over freight charges between the federal government and a railroad company. The government had contracted with the railroad to transport mail at a specified rate per pound but later claimed that it was overcharged because some of its shipments included equipment necessary for handling mail (such as pouch racks and apartment cases), which should not have been counted in calculating weight for transportation costs. The court held that these items were part of what made up 'mail' under their contract and thus could be charged by weight like any other component of mail shipment. Therefore, it found in favor of Baltimore & Ohio Railroad Company.

The dissenting opinion in the case of United States v. Baltimore & Ohio Railroad Company argued that the Interstate Commerce Commission (ICC) did not have the authority to determine what constituted a reasonable rate for railroads, as this power was vested solely with Congress under the Constitution. The dissenters believed that allowing an administrative agency like ICC to set rates would be tantamount to delegating legislative powers, which they viewed as unconstitutional. They also disagreed with majority's interpretation of "just and reasonable" standard applied by ICC when setting railroad rates, arguing it should reflect market conditions rather than being arbitrarily determined by an administrative body. Furthermore, they expressed concern about potential negative impacts on private property rights and free enterprise system if such broad regulatory powers were granted to government agencies without clear constitutional or statutory basis.