In the case of Newark Natural Gas & Fuel Company v. City of Newark, Ohio (1916), the US Supreme Court was asked to consider whether a city ordinance that required gas companies to obtain consent from property owners before laying pipes under their land violated due process rights. The court ruled in favor of the City of Newark, holding that such an ordinance did not violate any constitutional provisions and was within the power granted by state law for cities to regulate public utilities. The court also noted that it is reasonable for a municipality to require consent from property owners as they may be affected by construction work related with laying down pipelines. Therefore, this requirement does not constitute an unreasonable or arbitrary exercise of police power but rather serves as protection against potential damage or inconvenience caused by these activities.

In the dissenting opinion for Newark Natural Gas & Fuel Company v. City of Newark, Ohio, it was argued that the majority's decision to uphold a city ordinance regulating gas prices infringed upon contractual rights and exceeded municipal authority. The dissenting justices contended that the ordinance interfered with an existing contract between the gas company and its customers by imposing new pricing terms without mutual consent. They also questioned whether municipalities had inherent power to regulate private businesses in such a manner or if this constituted overreach into state jurisdiction. Furthermore, they expressed concern about potential economic consequences of allowing cities to arbitrarily alter business contracts under guise of public welfare regulation.