The U.S. Supreme Court case Alpha Portland Cement Company v. Commonwealth of Massachusetts in 1924 revolved around the issue of taxation and interstate commerce. The Alpha Portland Cement Company, a New Jersey corporation with its principal place of business in Pennsylvania, was subjected to an excise tax by Massachusetts for doing business within the state's borders. The company challenged this tax on grounds that it violated both the Due Process Clause and Commerce Clause of the Constitution as they were not physically present or had any property in Massachusetts but merely shipped their products into the state via independent contractors. However, the Supreme Court upheld Massachusetts' right to impose such a tax. It ruled that while states cannot impede interstate commerce through taxation, they can levy taxes on corporations operating within their boundaries even if those operations are limited to solicitation orders which result in interstate sales because these activities constitute "doing business" within said state.

In the dissenting opinion for ALPHA PORTLAND CEMENT COMPANY v. COMMONWEALTH OF MASSACHUSETTS, Justice Oliver Wendell Holmes Jr. argued that the majority's decision to uphold Massachusetts' tax on foreign corporations was a violation of the Commerce Clause of the U.S. Constitution. He contended that this tax placed an undue burden on interstate commerce and thus infringed upon federal jurisdiction over such matters. Furthermore, he expressed concern about potential retaliation from other states which could lead to economic chaos if each state imposed similar taxes on out-of-state businesses operating within their borders.