The U.S. Supreme Court case American Water Softener Company v. Lankford and Others, Composing the State Banking Board of the State of Oklahoma, 1914 revolved around a dispute over an Oklahoma statute that required foreign corporations to maintain a certain amount of capital within the state in order to conduct business there. The American Water Softener Company (AWSC), incorporated in West Virginia but operating in Oklahoma, challenged this law as unconstitutional under both due process and equal protection clauses. AWSC argued that it was discriminatory against out-of-state businesses since domestic companies were not subjected to similar requirements. However, the court upheld the constitutionality of such laws stating they were enacted for public welfare purposes - protecting creditors from potential insolvency risks associated with foreign corporations doing business locally without maintaining sufficient assets within their jurisdiction.

In the dissenting opinion for American Water Softener Company v. Lankford and Others, it was argued that the majority's decision to uphold Oklahoma's Blue Sky Law infringed upon constitutional rights. The law required companies to disclose detailed information about their business before selling securities in the state, which was seen as an overreach of state power by those dissenting. They believed this regulation interfered with interstate commerce and violated due process rights under the Fourteenth Amendment because it imposed unreasonable burdens on businesses without sufficient justification or clear standards for compliance. Furthermore, they contended that such laws should be enacted at a federal level rather than by individual states to ensure uniformity and prevent undue hardship on corporations operating across multiple jurisdictions.