In the 1904 case of The People of the State of New York ex rel. Metropolitan Street Railway Company v. New York State Board of Tax Commissioner, the Supreme Court ruled on a dispute regarding taxation and property rights. The Metropolitan Street Railway Company challenged an assessment by the New York State Board of Tax Commissioners, arguing that it was unfairly taxed for its franchise rights which were intangible assets not subject to tax under state law at that time. However, the court upheld the tax assessment ruling in favor of New York's right to levy taxes on such franchises as they are considered special privileges granted by government entities and therefore can be valued and taxed accordingly. This decision set a precedent for future cases involving similar issues about what constitutes taxable property.

In the dissenting opinion for The People of the State of New York ex rel. Metropolitan Street Railway Company v. New York State Board of Tax Commissioner, Justice Harlan argued that the majority's decision was inconsistent with previous rulings and violated principles of equal protection under law. He contended that by allowing a tax on franchises granted in perpetuity but not those granted for limited periods, the court had created an arbitrary distinction without basis in logic or fairness. Furthermore, he believed this ruling would discourage companies from investing in permanent infrastructure due to fear of additional taxation, thereby hindering economic development and progress. Ultimately, Justice Harlan felt that all corporations should be taxed equally regardless of whether their franchises were perpetual or temporary.