The U.S. Supreme Court case Western & Atlantic Railroad v. Georgia Public Service Commission et al., 1924, revolved around the issue of whether a state could regulate rates for intrastate transportation on an interstate railroad line owned by another state. The State of Georgia had purchased the Western and Atlantic Railroad in 1870 and leased it to a private company, which operated both intra- and interstate services on this line. When the Georgia Public Service Commission attempted to set rates for intrastate travel, the lessee objected arguing that as an instrumentality of another state (Georgia), it was immune from regulation by Tennessee under principles of federalism and intergovernmental immunity. However, the Supreme Court ruled against them stating that when a state engages in commercial activity outside its boundaries such as operating railroads or other businesses within another jurisdiction - here Tennessee - it surrenders some measure of its sovereign immunity particularly where regulatory matters affecting local public interest are concerned like setting reasonable transport fares for citizens using those services locally.

The dissenting opinion in the case of Western & Atlantic Railroad v. Georgia Public Service Commission et al., 1924, argued that the majority's decision to uphold a state law requiring railroads to maintain separate waiting rooms for white and black passengers was incorrect. The dissenters believed this ruling violated the Fourteenth Amendment's Equal Protection Clause, which guarantees all citizens equal protection under the law regardless of race or color. They contended that segregation inherently implied inequality and inferiority for African Americans, thus violating their constitutional rights. Furthermore, they asserted that it is not within a state’s power to enforce such racial discrimination laws on interstate commerce carriers like railroads as it goes against federal jurisdiction over interstate commerce matters.