In the case of Missouri & Kansas Interurban Railway Company v. City of Olathe, 1911, the U.S Supreme Court was tasked with determining whether a city ordinance that required street railway companies to pave and maintain streets between their tracks and two feet on each side was constitutional. The Missouri & Kansas Interurban Railway Company argued that this requirement constituted an illegal taking of property without just compensation under the Fifth Amendment. However, the court ruled in favor of the City of Olathe, stating that such requirements were within a municipality's police power to regulate for public safety and welfare. Therefore, it did not constitute an unconstitutional taking as long as it wasn't arbitrary or unreasonable.

The dissenting opinion in the case of Missouri & Kansas Interurban Railway Company v. City of Olathe argued that the majority's decision was inconsistent with previous rulings on similar issues. The dissenters believed that a city should not be able to impose its regulations on an interurban railway company operating within its limits, as this would interfere with interstate commerce and violate the Constitution's Commerce Clause. They contended that allowing local governments such control over these companies could lead to a patchwork of conflicting laws and regulations across different cities, which would hinder efficient transportation services. Furthermore, they disagreed with the majority's interpretation of what constitutes 'reasonable' regulation by local authorities, arguing it was too broad and gave cities undue power over private enterprises engaged in interstate commerce.