In the 1907 case of Consolidated Rendering Company v. The State of Vermont, the U.S. Supreme Court examined whether a state could regulate and tax out-of-state businesses that were conducting business within its borders. The plaintiff, Consolidated Rendering Company, was an out-of-state corporation that collected animal by-products from various slaughterhouses in Vermont to render into fertilizer and other products elsewhere. The company argued that it should not be subject to taxation or regulation by the state as it was engaged in interstate commerce which is under federal jurisdiction according to the Commerce Clause of Constitution. However, the court ruled against them stating that while states cannot interfere with interstate commerce directly, they can impose regulations on local aspects related to such trade if those activities have significant effects within their boundaries. In this case, since collecting and removing waste materials had potential health implications for local communities in Vermont - a matter traditionally regulated at state level - these operations fell under legitimate purview of state's police powers even though they were part of larger commercial operation spanning multiple states.

The dissenting opinion in the case of Consolidated Rendering Company v. The State of Vermont argued that the state's regulation, which prohibited importation and sale of animal feed made from meat by-products not inspected or approved by a state official, was an unconstitutional burden on interstate commerce. It contended that while states have the right to protect their citizens' health and safety, this law went beyond what was necessary for such protection. Instead, it interfered with free trade between states because it effectively banned all out-of-state feeds unless they met Vermont's specific inspection standards - something not required for similar products produced within Vermont itself. This discrimination against out-of-state goods violated the Commerce Clause of the U.S Constitution according to this view.