In the 1913 case of Barrett, President of Adams Express Co., v. City of New York, the U.S. Supreme Court ruled in favor of the city regarding its right to tax express companies operating within its jurisdiction. The plaintiff, Adams Express Company's president Mr. Barrett, argued that such taxation was unconstitutional as it interfered with interstate commerce and violated equal protection rights under Fourteenth Amendment since other types businesses were not similarly taxed by local authorities for their use public streets and highways in conducting business operations across state lines. The court disagreed with these arguments stating that a municipality has inherent power to levy taxes on businesses operating within its boundaries unless expressly forbidden by state law or constitution; this includes those engaged in interstate commerce provided they are not discriminated against compared to intrastate enterprises. Furthermore, it found no violation of equal protection clause because different kinds businesses can be classified differently for purposes taxation based on nature their activities without necessarily being discriminatory or arbitrary.

In the dissenting opinion for Barrett, President of Adams Express Co., v. City of New York, Justice Holmes argued that the city's tax on out-of-state corporations was not unconstitutional. He reasoned that since these companies were doing business within New York and benefiting from its services and protections, it was only fair they contribute to its upkeep through taxes. Furthermore, he disagreed with the majority's interpretation of "interstate commerce," arguing that a corporation conducting business in multiple states does not exempt it from state taxation. In his view, such an interpretation could potentially undermine states' rights to regulate their own economies and maintain fiscal stability.