In the case of Adams Express Company v. Commonwealth of Kentucky, 1908, the U.S. Supreme Court ruled in favor of Kentucky's right to tax interstate commerce companies operating within its borders. The Adams Express Company was an interstate carrier that also conducted business in Kentucky and argued that it should not be subject to state taxation due to its status as an interstate entity. However, the court held that while states cannot interfere with or place burdens on interstate commerce directly, they can impose taxes on businesses conducting operations within their jurisdiction if those taxes do not discriminate against or unduly burden such commerce. Therefore, since Kentucky’s tax did not discriminate against out-of-state entities nor did it pose a direct burden on interstate trade but rather taxed all corporations equally based upon their property value within the state regardless of whether they were involved in intrastate or interstate business activities; this law was deemed constitutional.

In the dissenting opinion for Adams Express Company v. Commonwealth of Kentucky, Justice Harlan argued that the majority's decision was inconsistent with previous rulings and violated principles of interstate commerce. He contended that a state cannot tax property located outside its jurisdiction or control, even if it is owned by a corporation operating within its borders. In this case, he believed Kentucky had no right to levy taxes on money orders sold in other states by Adams Express Company since those transactions occurred beyond Kentucky's jurisdictional reach. Furthermore, he asserted that such taxation interfered with interstate commerce as it imposed an undue burden on companies conducting business across state lines. Therefore, according to Justice Harlan’s dissenting view, the judgment should have been reversed.