In the case of Baltimore Traction Company v. Baltimore Belt Railroad Company in 1893, the U.S Supreme Court was tasked with resolving a dispute between two railway companies over rights to use certain tracks within the city of Baltimore. The plaintiff, Baltimore Traction Company, claimed that it had exclusive rights to operate on these tracks based on an agreement made with another company which originally owned them. However, this claim was contested by the defendant, Baltimore Belt Railroad Company who argued they also had valid operating rights granted by a municipal ordinance from the city government. The court ruled in favor of the defendant and held that while private agreements could be used to establish operating privileges for railways under normal circumstances; such arrangements were subject to regulation and alteration by local governments when necessary for public welfare or convenience. Therefore, despite any previous contractual obligations or understandings between private parties involved; municipalities retained ultimate authority over how their infrastructure is utilized within their jurisdictional boundaries.

In the dissenting opinion for Baltimore Traction Company v. Baltimore Belt Railroad Company, Justice Brewer argued that the majority's decision was inconsistent with previous rulings and principles of law. He contended that a corporation has no rights beyond those explicitly granted in its charter, and thus cannot claim any implied powers or privileges not specifically mentioned therein. In this case, he believed that the Baltimore Belt Railroad Company did not have an inherent right to lay tracks across city streets without explicit permission from municipal authorities or specific authorization in its corporate charter. Furthermore, he disagreed with the majority's interpretation of Maryland state laws regarding railroad construction and operation within city limits as granting such implicit authority to all railroads operating within these jurisdictions. Instead, he maintained that these statutes merely established general regulations applicable to all corporations once they had obtained necessary permissions through their charters or other legal means.