In the case of Washington Gas Light Company v. District of Columbia (1895), the U.S. Supreme Court ruled in favor of the Washington Gas Light Company, overturning a decision by lower courts that had sided with the District of Columbia. The dispute centered around whether or not certain gas mains and pipes laid under city streets could be taxed as real estate property by local authorities. The court determined that these installations were indeed taxable as they constituted permanent improvements to land owned by another party, but only if they contributed to its value; however, it also found that this was not true in this particular instance because there was no evidence showing an increase in value due to these installations. Therefore, while such infrastructure can theoretically be subject to taxation under specific circumstances, it wasn't applicable here due to lack of proof regarding enhanced property values.

In the dissenting opinion for Washington Gas Light Company v. District of Columbia, Justice Harlan argued that the majority's decision was inconsistent with previous rulings and principles established by the court. He contended that a corporation should not be exempt from taxation simply because it provides public services or benefits to society at large. In his view, this would create an unfair burden on other taxpayers who are required to contribute their fair share towards maintaining government functions and infrastructure. Furthermore, he believed that allowing such exemptions could potentially lead to abuse as corporations might seek to exploit this loophole in order to avoid paying taxes altogether. Therefore, he disagreed with the majority's ruling which held that a tax imposed on gas companies in D.C was unconstitutional due its discriminatory nature against out-of-state corporations.