In the case of Milwaukee Electric Railway & Light Company v. Railroad Commission of Wisconsin, 1914, the U.S Supreme Court was tasked with determining whether a state commission had the authority to set rates for intrastate commerce that were lower than those established by an interstate commerce commission. The Milwaukee Electric Railway & Light Company argued that this violated their rights under the Fourteenth Amendment and also conflicted with federal law governing interstate commerce. However, in its decision, the Supreme Court upheld Wisconsin's right to regulate local trade within its borders and ruled against Milwaukee Electric Railway & Light Company. The court found no violation of due process or equal protection clauses as claimed by the company because it did not interfere with any existing contractual obligations nor did it deprive them of property without due process of law.

In the dissenting opinion for Milwaukee Electric Railway & Light Company v. Railroad Commission of Wisconsin, Justice Holmes disagreed with the majority's decision to uphold a state law that allowed a commission to set rates for streetcar fares. He argued that this was an unconstitutional violation of due process rights under the Fourteenth Amendment because it did not provide companies with adequate opportunity to challenge these rates before they were implemented. Furthermore, he contended that such regulation could potentially lead to confiscation if companies were forced into bankruptcy by unreasonably low rates set by commissions without proper judicial review or oversight. This, according to Justice Holmes, would be tantamount to taking private property without just compensation which is prohibited by the Fifth Amendment.