In the case of United States v. Union Pacific Railway Company and Western Union Telegraph Company, 1895, the U.S. Supreme Court ruled that a railway company could not grant exclusive rights to a telegraph company for use of its right-of-way for telegraph lines without violating federal law. The court held that under an 1862 Act of Congress, any railroad constructed on public lands was required to allow all telegraph companies equal access to operate along their routes. This ruling came after the government sued both companies when they entered into an agreement granting Western Union exclusive rights over other competing firms in using the railway's right-of-way for its telegraph lines.

The dissenting opinion in the case of United States v. Union Pacific Railway Company and Western Union Telegraph Company argued that the majority's decision was incorrect because it failed to recognize the rights of telegraph companies under federal law. The dissenters believed that Congress, through its legislation, had granted these companies certain privileges and protections which should not be undermined by state laws or court decisions. They contended that telegraph lines were instrumentalities of commerce among states and therefore fell within the jurisdiction of federal regulation rather than state control. Furthermore, they disagreed with the majority's interpretation of contracts between railroad and telegraph companies as mere leases subject to termination at will by either party; instead, they viewed them as binding agreements granting exclusive rights for a specified period. In their view, this misinterpretation led to an unjust ruling against Western Union Telegraph Company.