The Pennsylvania Gas Company v. Public Service Commission, Second District, of the State of New York case in 1919 revolved around a dispute over natural gas rates and interstate commerce regulations. The Pennsylvania Gas Company sued the Public Service Commission (PSC) for setting what they believed to be unreasonably low rates for their services in Jamestown, NY. They argued that these rates violated their constitutional rights under the Fourteenth Amendment by depriving them of property without due process or just compensation. However, the Supreme Court ruled against them stating that states have authority to regulate utilities within their borders even if it affects interstate commerce indirectly as long as there is no direct burden on it or conflict with Congress's power over it. Therefore, PSC’s rate-setting was deemed lawful because its primary purpose was not to regulate interstate commerce but rather local service conditions and prices.

In the dissenting opinion for Pennsylvania Gas Company v. Public Service Commission, Second District, of the State of New York et al., Justice McReynolds disagreed with the majority's decision that upheld a state law requiring out-of-state corporations to obtain consent from their home states before doing business in New York. He argued that this requirement was an unconstitutional violation of interstate commerce and due process rights under the Fourteenth Amendment. According to him, it placed undue burdens on businesses seeking to operate across state lines by subjecting them to potentially conflicting regulations and requirements from different jurisdictions. Furthermore, he contended that such restrictions could lead to retaliatory measures between states which would ultimately harm national unity and economic growth.