In the United States Supreme Court case of United Fuel Gas Company et al. v. Railroad Commission of Kentucky et al., 1928, the court examined whether a state could regulate rates charged by natural gas companies for interstate commerce. The United Fuel Gas Company had been ordered by the Kentucky Railroad Commission to reduce its rates within the state, but it argued that this was an interference with interstate commerce and therefore unconstitutional under federal law. However, in a unanimous decision led by Justice Oliver Wendell Holmes Jr., the Supreme Court ruled against them stating that states have authority to regulate utilities within their borders even if they are involved in interstate trade as long as there is no conflict with federal regulation or legislation on such matters.

In the dissenting opinion for United Fuel Gas Company et al. v. Railroad Commission of Kentucky et al., Justice Stone argued that the majority's decision to strike down a Kentucky statute regulating gas prices was an overreach of judicial power and violated principles of federalism. He contended that it is not within the purview of courts to determine whether a state regulation is reasonable or necessary, but rather this responsibility lies with legislative bodies who are better equipped to make such determinations based on their understanding and assessment of local conditions and needs. Furthermore, he asserted that there was no clear evidence presented in this case demonstrating that the regulated rates were confiscatory or oppressive towards gas companies operating in Kentucky, which would be grounds for constitutional violation under due process clause protections against arbitrary government action affecting property rights.