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In the case of Oklahoma Gas & Electric Co. et al. v. Oklahoma Packing Co. et al., 1933, the U.S Supreme Court ruled in favor of the defendants, Oklahoma Packing Company and others who were consumers of electricity supplied by plaintiff, Oklahoma Gas & Electric Company (OG&E). The dispute arose when OG&E sought to increase its rates for electric service without approval from state regulatory authorities which was against a state law requiring such increases to be approved first by the Corporation Commission of State before implementation. The plaintiffs argued that this law violated their constitutional rights under Fourteenth Amendment's due process clause as it deprived them right to earn a reasonable return on their property used in public utility business without judicial review or hearing before an impartial tribunal prior to rate change enforcement . However, Supreme Court upheld validity of this regulation stating that it did not violate any constitutional provisions since utilities are subject to governmental control for public interest and there is no absolute right for companies providing essential services like electricity supply to fix prices at will.
In the dissenting opinion for Oklahoma Gas & Electric Co. v. Oklahoma Packing Co., Justice McReynolds argued that the majority's decision to uphold a state law allowing public utilities to charge different rates in different parts of the state was incorrect and violated principles of equal protection under the Fourteenth Amendment. He contended that there was no reasonable basis for charging customers in one city more than those in another, especially when both cities were served by the same utility company using similar facilities and services. Furthermore, he believed this ruling would set a dangerous precedent where states could arbitrarily discriminate against certain groups or regions without any logical justification or rational basis.