The U.S. Supreme Court case City of Louisville v. Cumberland Telephone and Telegraph Company in 1913 revolved around the issue of whether a city could impose a tax on telephone poles, wires, and other equipment used by telecommunication companies to provide their services within city limits. The City of Louisville had imposed such a tax on the Cumberland Telephone and Telegraph Company, which challenged it as unconstitutional under both state law and federal commerce clause grounds. The court ruled in favor of the company, finding that while cities have broad powers to levy taxes for revenue purposes or regulate local affairs, they cannot do so in ways that interfere with interstate commerce or violate constitutional protections against discrimination among different types of businesses.

In the dissenting opinion for the City of Louisville v. Cumberland Telephone and Telegraph Company case, Justice Holmes disagreed with the majority's decision that a city ordinance requiring telephone companies to bury their wires underground was unreasonable and unconstitutional. He argued that it is within a municipality’s police power to regulate businesses in ways that promote public safety, health, or aesthetics. In his view, forcing telephone companies to move their wires underground could be seen as an effort by the city of Louisville to reduce visual clutter and potential hazards posed by overhead lines. Furthermore, he contended that if such regulations were deemed too burdensome for businesses then they should be addressed through legislation rather than judicial intervention.