In the case of City of New York v. Consolidated Gas Company of New York et al., 1919, the U.S Supreme Court ruled in favor of Consolidated Gas Company. The city had sought to regulate gas prices by setting a maximum rate that could be charged for gas sold within its jurisdiction. However, the court held that such regulation was unconstitutional as it violated due process rights under the Fourteenth Amendment and amounted to confiscation without compensation. The court reasoned that while cities have power to regulate utilities, they cannot set rates so low as to prevent companies from earning a reasonable return on their investment or property value used in providing service.

In the dissenting opinion for the case City of New York v. Consolidated Gas Company of New York, Justice McReynolds expressed his disagreement with the majority's decision that upheld a law setting maximum rates for gas companies in New York City. He argued that this law was unconstitutional as it deprived gas companies of their property without due process and denied them equal protection under the laws. According to him, there was no evidence presented during trial showing these rates were reasonable or fair; instead they seemed arbitrary and designed to harm corporations rather than protect consumers' interests. Furthermore, he contended that such regulation should be based on individual company performance rather than an industry-wide standard which could potentially lead to unfair treatment towards certain businesses.