In the 1895 case of Jersey City and Bergen Railroad Company v. Morgan, the U.S. Supreme Court ruled in favor of a property owner who had sued for damages after his land was taken by eminent domain to build a railroad line. The court held that just compensation must be paid when private property is taken for public use, as required by the Fifth Amendment's Takings Clause. In this case, it was determined that Mr. Morgan should have been compensated not only for his physical property but also for any depreciation in value to his remaining lands caused by construction and operation of the railroad line across them.

In the dissenting opinion for Jersey City and Bergen Railroad Company v. Morgan, it was argued that the majority's decision to uphold a New Jersey law requiring street railway companies to maintain fences along their tracks in certain areas was an overreach of state power. The dissenting justices believed that this requirement placed an undue burden on interstate commerce by making it more difficult and expensive for railroad companies to operate across state lines. They contended that while states have the right to regulate businesses within their borders, they should not be allowed to enact laws which interfere with or impede interstate commerce, as they believe this particular law does. Furthermore, they expressed concerns about potential negative impacts on economic growth and development if such regulations were permitted.