In the 1915 case of Terminal Taxicab Company, Inc. v. Kutz, Newman, and Brownlow (Commissioners constituting the Public Utilities Commission of the District of Columbia), the Supreme Court ruled in favor of regulatory power over private corporations operating within public spaces. The Terminal Taxicab Company had challenged an order from DC's Public Utilities Commission that required it to provide detailed reports about its operations and finances for review by regulators. The company argued this was a violation of their rights under the Fourth Amendment against unreasonable searches and seizures as well as Fifth Amendment protections against self-incrimination. However, Justice Holmes delivered an opinion stating that when a business is conducted in public places or affects public welfare such as transportation services do, they are subject to regulation for protection of society at large - including requirements to disclose information relevant to those regulations.

The dissenting opinion in the case of Terminal Taxicab Company, Inc. v. Kutz, Newman, and Brownlow argued that the Public Utilities Commission did not have the authority to regulate taxicabs as they were not public utilities under existing law. The dissenters contended that taxis are a private enterprise and should be treated differently from other forms of transportation like railroads or streetcars which serve a larger segment of society and operate on fixed routes for set fares. They believed that allowing such regulation would open up all sorts of businesses to potential government control without clear legislative intent or guidance. Furthermore, they expressed concern about due process rights being violated if taxi companies could be subjected to arbitrary rate setting by an unelected commission without any recourse in court.