In the case of Des Moines Gas Company v. City of Des Moines in 1914, the U.S Supreme Court examined a dispute between a gas company and a city over franchise rights. The Des Moines Gas Company argued that it had an exclusive right to supply gas within certain areas of the city based on its charter from 1866, which was renewed in 1881 for another twenty years. However, after this period expired in 1901, the City Council passed an ordinance granting similar privileges to any other person or corporation willing to comply with specified conditions. The court ruled against the gas company stating that their franchise rights were not perpetual but limited by time as per their agreement with the city council and thus could be revoked or altered at will by legislative authority once they expired.

In the dissenting opinion for Des Moines Gas Company v. City of Des Moines, it was argued that the city's ordinance to regulate gas prices infringed upon the rights of private corporations and their ability to set fair rates based on market conditions. The justice believed that while cities have a right to protect consumers from exorbitant pricing, they should not interfere with a company’s ability to operate profitably under reasonable circumstances. They contended that this regulation could potentially discourage businesses from operating in such an environment where their profitability is threatened by government interference. Furthermore, they expressed concern over potential violations of due process rights as companies were not given sufficient opportunity or means to challenge these regulations before they were implemented.