In the 1921 case South-Covington & Cincinnati Street Railway Company, et al. v. City of Newport, Kentucky, the Supreme Court ruled in favor of the railway company and against a city ordinance that required street railways to pave and maintain roads between their tracks and two feet on either side at their own expense. The court found this requirement unconstitutional as it violated due process under the Fourteenth Amendment by placing an undue burden on interstate commerce companies without providing them with just compensation or equal protection under law. This ruling established precedent for future cases involving local government regulation of private businesses operating within public spaces.

In the dissenting opinion for South-Covington & Cincinnati Street Railway Company v. City of Newport, Kentucky, it was argued that the majority's decision to uphold a city ordinance requiring street railway companies to maintain and repair streets used by their tracks violated principles of fairness and due process. The dissenting justices contended that such an obligation should be shared among all who benefit from the use of these roads, not solely imposed on railway companies. They also expressed concern about potential abuse by local governments which could arbitrarily impose burdensome costs on businesses operating within their jurisdictions without providing any corresponding benefits or protections in return. This view held that this ruling would set a dangerous precedent allowing municipalities to unfairly shift public responsibilities onto private entities.