The Newport Light Company v. Newport case in 1893 revolved around a dispute between the city of Newport and the local gas light company over an ordinance that set maximum rates for gas. The Supreme Court ruled in favor of the city, stating that it had not violated any contractual obligations with its ordinance as claimed by the light company. The court held that while corporations have rights under contracts, these do not supersede or limit a state's power to regulate public utilities for protecting citizens' welfare. Therefore, states can alter utility rates through legislation if they deem it necessary for public interest without breaching contract clauses.

In the dissenting opinion for Newport Light Company v. Newport, it was argued that the city of Newport had no right to take over a private company without providing just compensation. The justice believed that this action violated the Fifth Amendment's Takings Clause, which states that private property cannot be taken for public use without fair payment. He also disagreed with the majority's interpretation of Rhode Island law and its application in this case, arguing instead that state law did not grant municipalities such broad powers to seize control of privately-owned utilities. Furthermore, he expressed concern about potential negative impacts on business confidence and investment if governments could arbitrarily confiscate private assets under guise of serving public interest.