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The United States Supreme Court case, UNITED STATES, INTERSTATE COMMERCE COMMISSION, NATIONAL COUNCIL OF TRAVELING SALESMEN'S ASSOCIATIONS et al. v. NEW YORK CENTRAL RAILROAD COMPANY et al., 1923 revolved around the issue of whether or not railroads could offer reduced rates to traveling salesmen without offering the same discounts to other commercial travelers. The National Council of Traveling Salesmen's Associations and others argued that this was a violation of the Interstate Commerce Act which prohibits unjust discrimination in charges for transportation services by rail carriers engaged in interstate commerce. However, New York Central Railroad Company and other railroad companies contended that these were legitimate business practices as they had been long-standing industry customs aimed at promoting trade and commerce. The Supreme Court ruled in favor of the railroad companies stating that there was no evidence showing such rate reductions resulted in any undue prejudice or disadvantage against those who did not receive them.
In the dissenting opinion for this case, it was argued that the Interstate Commerce Commission (ICC) did not have authority to regulate free or reduced-rate transportation services provided by railroads to traveling salesmen. The dissenters believed that these "privileges" were part of a longstanding tradition in American business and didn't constitute unfair competition under the law. They also contended that Congress never intended for such practices to fall within ICC's regulatory purview when it established the commission. Furthermore, they expressed concerns about potential overreach by federal agencies and cautioned against interpreting laws in ways that could unduly expand their power.