In the 1910 case of Appleby v. City of Buffalo, the US Supreme Court ruled in favor of the city, upholding its right to revoke a fifty-year franchise agreement with a private company for failure to comply with stipulated conditions. The plaintiff, John C. Appleby's company had been granted permission by the city council to construct and operate an electric railway system on certain streets in Buffalo under specific terms and conditions including completion within one year from February 1896. However, due to financial difficulties and other complications, construction was not completed until after this deadline passed. Appleby sued when his franchise rights were revoked by the city citing that it was unconstitutional as it violated contract clauses which prohibit states from passing laws impairing contractual obligations. The court disagreed stating that such contracts are subject to implied reservations of police power necessary for community safety or welfare; hence they can be modified or terminated if public interest requires so. The ruling emphasized that while private property may be devoted to public use upon just compensation being made thereunder but it cannot deprive government authorities their inherent right over streets held in trust for public benefit.

In the dissenting opinion for Appleby v. City of Buffalo, Justice Harlan argued that the city's decision to grant a 35-year lease on its waterfront property to a private corporation was unconstitutional. He believed it violated both state law and the Fourteenth Amendment by depriving citizens of their right to use and enjoy public lands without due process. Harlan contended that such long-term leases effectively sold off public assets in perpetuity, as they could be renewed indefinitely under terms favorable to corporations but detrimental to future generations of taxpayers. Furthermore, he asserted that this case represented an alarming trend towards corporate control over essential resources like waterways, which should remain accessible for all citizens' benefit rather than being monopolized by private interests.