The U.S. Supreme Court case Railroad Commission of California et al. v. Los Angeles Railway Corporation in 1929 revolved around the issue of whether a state could regulate rates for public utilities, such as transportation companies, without violating the due process clause of the Fourteenth Amendment to the Constitution. The Los Angeles Railway Corporation challenged an order by the Railroad Commission of California that reduced its fares from seven cents to five cents per ride, arguing that it was confiscatory and thus unconstitutional under federal law because it would not allow them a reasonable return on their investment or cover operating costs adequately. However, after reviewing evidence presented about financial conditions and potential impacts on service quality and profitability, including expert testimony regarding rate-making principles applied in this case by both sides (the railway company and regulatory commission), Justice Stone writing for majority held that there is no constitutional right to profits guaranteed for utility owners; rather they are entitled only against arbitrary or unreasonable regulation which might result into confiscation. Therefore, he concluded that while courts can review if rates set by states are so low as being unjustly confiscatory - thereby infringing upon property rights protected under Due Process Clause - they should defer generally to legislative judgment unless clear violation appears; hence upheld decision made by California's railroad commission reducing streetcar fares within city limits.

In the dissenting opinion for Railroad Commission of California et al. v. Los Angeles Railway Corporation, Justice Stone argued that the majority's decision to strike down a state law regulating streetcar fares was an overreach of judicial power and undermined states' rights. He contended that it is not within the purview of courts to determine what constitutes reasonable rates; rather, this should be left up to legislative bodies or regulatory commissions who are better equipped with technical expertise and understanding of local conditions. Furthermore, he expressed concern about potential negative impacts on public welfare if private corporations were allowed unchecked control over essential services like transportation without any form of government regulation or oversight.