In the 1917 case Western Union Telegraph Company et al. v. Foster and MacLeod et al., members of the Public Service Commission of Massachusetts, the U.S Supreme Court ruled in favor of Western Union Telegraph Company. The company had challenged a state law that required telegraph companies to deliver messages within one hour or face penalties for each minute's delay beyond this time limit, arguing it was an unreasonable regulation violating their rights under both federal commerce laws and Fourteenth Amendment due process protections. The court agreed with Western Union, finding that while states could regulate businesses providing public services within their borders, such regulations must be reasonable and not interfere with interstate commerce or violate constitutional protections against arbitrary government action.

In the dissenting opinion for Western Union Telegraph Company v. Foster and Macleod, it was argued that the state of Massachusetts had overstepped its authority by attempting to regulate interstate commerce through its Public Service Commission. The justices contended that only Congress has the power to regulate such matters under the Constitution's Commerce Clause. They believed that allowing a state agency to impose regulations on an interstate company like Western Union would set a dangerous precedent, potentially leading to inconsistent rules across different states and creating undue burdens on companies operating in multiple jurisdictions. Furthermore, they expressed concern about potential violations of due process rights if states were allowed unchecked regulatory powers over businesses within their borders.