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In the 1922 case of Georgia Railway & Power Company et al. v. Mayor and Council of the City of College Park, the Supreme Court ruled in favor of Georgia Railway & Power Co., stating that a city ordinance requiring street railway companies to pave and maintain streets between their tracks was unconstitutional as it violated due process under the Fourteenth Amendment. The court found that such an ordinance placed an undue burden on interstate commerce by forcing private entities to take responsibility for public infrastructure maintenance without just compensation or clear benefit to their operations. This decision reinforced principles regarding limitations on local government authority over private businesses, particularly those involved in interstate commerce.
In the dissenting opinion for Georgia Railway & Power Company et al. v. Mayor and Council of the City of College Park, Justice McReynolds expressed concern over the majority's decision to uphold a local ordinance that required street railway companies to pave and maintain streets between their tracks and two feet beyond them. He argued that this requirement was an unreasonable exercise of police power by the city council, as it imposed undue financial burden on these companies without providing any clear public benefit or necessity. Furthermore, he contended that such ordinances could potentially be used in a discriminatory manner against certain businesses or industries. Therefore, he believed that this case represented an unjustified expansion of municipal authority at the expense of private enterprise rights.