The U.S. Supreme Court case Detroit Citizens' Street Railway Company v. Detroit Railway in 1897 revolved around a dispute between two railway companies over the right to operate on certain streets within the city of Detroit, Michigan. The plaintiff, Detroit Citizens' Street Railway Company, claimed that they had exclusive rights granted by their charter from the state legislature and sought an injunction against the defendant, Detroit Railway, to prevent them from operating on these routes. However, the defendant argued that they were also granted permission by local authorities to run their lines along these same streets. The court ruled in favor of the defendant stating that while a state legislature could grant exclusive privileges for use of public highways or streets for street railways purposes; such privilege does not exclude municipal authority's power under general laws to permit other similar uses by others when it doesn't physically interfere with prior occupant's use. Therefore, both companies were allowed to operate concurrently on those disputed routes as long as there was no physical interference.

In the dissenting opinion for Detroit Citizens' Street Railway Company v. Detroit Railway, it was argued that the majority's decision to uphold a city ordinance granting exclusive rights to operate street railways in certain areas of Detroit violated principles of free competition and equal protection under the law. The dissent contended that such an arrangement unfairly favored one company over another, creating a monopoly which could lead to higher prices and poorer service for consumers. Furthermore, they believed this ruling contradicted previous court decisions which held that cities cannot grant exclusive privileges or franchises without express legislative authority. They also expressed concern about potential abuse of power by local governments if allowed unchecked discretion in regulating public utilities.