In the 1892 case of Chicago, Milwaukee and St. Paul Railway Company v. Hoyt, the U.S Supreme Court was tasked with determining whether a state could tax interstate commerce businesses for property located within its jurisdiction but used in operations spanning multiple states. The dispute arose when Wisconsin imposed taxes on railway cars owned by the Chicago, Milwaukee and St. Paul Railway Company that were frequently used outside of Wisconsin's borders as part of interstate commerce activities. The court ruled in favor of Hoyt (the Tax Commissioner), upholding Wisconsin’s right to levy such taxes. It held that while states cannot interfere with or burden interstate commerce directly through taxation or otherwise, they can still tax personal property physically present within their boundaries even if it is employed in interstate trade. This decision clarified an important aspect regarding how far-reaching a state's taxing power could be over properties involved in inter-state business operations without infringing upon federal authority over inter-state commerce.

In the dissenting opinion for the case of Chicago, Milwaukee and St. Paul Railway Company v. Hoyt, Justice Brewer argued that the court's decision to uphold a Wisconsin law requiring out-of-state corporations to pay taxes on all property used in business operations within state borders was unconstitutional. He contended that this ruling violated both due process and equal protection clauses by unfairly taxing companies based on their total assets rather than just those located or utilized within Wisconsin itself. Furthermore, he believed it infringed upon interstate commerce regulations as it imposed an undue burden on businesses operating across state lines. In his view, such taxation should be proportionate to a company’s presence and activities in a given jurisdiction rather than its overall worth.