In the case of Assaria State Bank v. Dolley, the Supreme Court was asked to determine whether a Kansas state law that required banks to contribute to a depositors' guarantee fund violated the Fourteenth Amendment's due process clause. The bank argued that this requirement constituted an illegal taking of property without just compensation and without due process of law. However, the Supreme Court disagreed with this argument and upheld the constitutionality of Kansas's banking laws in 1910. The court found that these regulations were within a state’s police power as they served public interest by providing security for depositors against loss caused by insolvency or financial instability among banks. Therefore, it did not violate any constitutional rights under either federal or state constitutions.

In the dissenting opinion for Assaria State Bank v. Dolley, it was argued that the Kansas Blue Sky Law violated both due process and equal protection clauses of the Fourteenth Amendment. The justice disagreed with the majority's view that this law protected investors from fraud, asserting instead that it unfairly discriminated against out-of-state securities while favoring those within Kansas. He contended that such discrimination had no rational basis or connection to preventing fraud in securities transactions. Furthermore, he believed this law imposed an undue burden on interstate commerce by requiring excessive fees and paperwork for out-of-state companies seeking to sell their securities in Kansas - a requirement not placed on local businesses. Thus, he concluded that rather than serving as a legitimate exercise of police power aimed at protecting public welfare, this legislation served primarily as a protective measure for local industries against outside competition.