The U.S. Supreme Court case Covington and Cincinnati Elevated Railroad and Transfer and Bridge Company v. Kentucky in 1893 revolved around the issue of interstate commerce regulation, specifically regarding a bridge that spanned the Ohio River between Kentucky and Ohio. The state of Kentucky had imposed taxes on the railroad company for its use of this bridge, which was used to transport goods across state lines. The railroad company argued that these taxes were unconstitutional as they interfered with interstate commerce, a power reserved by Congress under the Commerce Clause of the Constitution. The Supreme Court ruled in favor of Kentucky, stating that while Congress does have exclusive authority over interstate commerce regulation, it doesn't prevent states from exercising their taxing powers unless such taxation directly conflicts with federal law or is discriminatory against out-of-state interests. In this case, since there was no specific federal legislation regulating bridges used for interstate transportation at play nor any evidence suggesting discrimination against out-of-state entities by imposing tax on usage basis rather than ownership basis; hence it did not infringe upon Congressional control over interstate trade.

In the dissenting opinion for Covington and Cincinnati Elevated Railroad and Transfer and Bridge Company v. Kentucky, it was argued that the majority's decision violated principles of federalism by allowing a state to regulate interstate commerce. The dissenters believed that only Congress had this power under the Constitution. They contended that if each state were allowed to impose its own regulations on interstate commerce, it would lead to confusion and inefficiency in trade between states. Furthermore, they expressed concern about potential discrimination against out-of-state businesses as individual states could favor their local industries through regulation. Therefore, they disagreed with the majority's ruling which upheld Kentucky’s right to tax an Ohio-based railroad company operating within its borders.