In the case of Board of Public Utility Commissioners v. Compania General de Tabacos de Filipinas, 1918, the U.S Supreme Court ruled in favor of the defendant, a Spanish corporation operating in Philippines. The plaintiff had sought to regulate rates charged by the company for water supply services it provided in Manila and its suburbs. The court held that under Philippine law at that time (Act No. 2307), public utility regulation was limited only to American or Philippine entities and did not extend to foreign corporations like Compania General De Tabacos De Filipinas unless they voluntarily submitted themselves to such jurisdiction which this company did not do so. Therefore, it could not be subjected to rate regulations imposed by local authorities.

In the dissenting opinion for the case of Board of Public Utility Commissioners v. Compania General de Tabacos De Filipinas, Justice Holmes disagreed with the majority's decision to uphold a law that allowed public utility rates in California to be set by a commission rather than market forces. He argued that this violated property rights protected under the Fourteenth Amendment and constituted an unlawful taking without just compensation. Holmes contended that while government regulation is necessary, it should not infringe upon private property rights unless there is clear evidence of abuse or wrongdoing on part of the owner. He also expressed concern about potential corruption within regulatory commissions and believed they could easily become tools for political manipulation if left unchecked by judicial review.