The U.S. Supreme Court case City of Cincinnati v. Cincinnati & Hamilton Traction Company et al., 1917, revolved around the issue of whether a city had the right to regulate and control street railway fares within its jurisdiction or if this power was vested in state authorities. The City of Cincinnati attempted to enforce an ordinance that would lower streetcar fares from five cents to three-and-a-half cents per ride, arguing it held regulatory powers over local public utilities under its charter granted by Ohio's legislature. However, the traction company contested this action as unconstitutional interference with their contract rights and property without due process of law. The Supreme Court sided with the traction company, ruling that such regulation was indeed a matter for state rather than municipal authority unless explicitly delegated by statute or constitutionally permissible home rule provisions.

In the dissenting opinion for the case of CITY OF CINCINNATI v. CINCINNATI & HAMILTON TRACTION COMPANY et al., Justice Holmes disagreed with the majority's decision to uphold a city ordinance that required street railway companies to sell eight tickets for a quarter, arguing it was an unconstitutional taking of property without just compensation. He believed that this price-fixing measure interfered with contractual freedom and violated due process rights under the Fourteenth Amendment. According to him, if such regulation is allowed in this instance, it could potentially lead to other forms of government interference in private business contracts which would be detrimental for economic liberty and growth. Furthermore, he argued that there was no evidence presented demonstrating any abuse or exploitation by these companies warranting such drastic governmental intervention.