In the case of United Railways and Electric Company of Baltimore v. West, Chairman, et al., 1929, the Supreme Court ruled in favor of United Railways. The dispute arose when Maryland's Public Service Commission ordered a reduction in streetcar fares from six to five cents without providing an opportunity for judicial review before enforcing this order. This was challenged by United Railways on grounds that it violated their due process rights under the Fourteenth Amendment as they were not given a fair hearing or chance to contest this decision which directly impacted their property interests (revenue). The court agreed with United Railway’s argument stating that while states have power over local rates within its jurisdiction, such power must be exercised consistently with constitutional limitations including respecting due process rights.

In the dissenting opinion for United Railways and Electric Company of Baltimore v. West, Chairman, et al., Justice Stone argued that the majority's decision was inconsistent with previous rulings on similar cases. He believed that a state could not force a privately owned utility to provide service at rates that would result in financial loss without violating the due process clause of the Fourteenth Amendment. In his view, this case represented an overreach by Maryland's Public Service Commission because it set rates too low for United Railways to operate profitably while still maintaining adequate service levels. Therefore, he contended that these rate orders were unconstitutional as they deprived the company of its property without just compensation.