In the 1927 case of Delaware, Lackawanna and Western Railroad Company v. Town of Morristown et al., the U.S Supreme Court was tasked with determining whether a New Jersey statute that allowed municipalities to tax railroad properties at higher rates than other real estate violated the Fourteenth Amendment's Equal Protection Clause. The plaintiff, Delaware, Lackawanna and Western Railroad Company argued that this law unfairly discriminated against them by imposing an unequal burden on their property compared to others in the same municipality. However, after reviewing previous rulings and considering arguments from both sides, the court upheld New Jersey's right to impose different tax rates on different types of property within its jurisdiction. They concluded that there was no violation of equal protection under law as long as all properties within a particular class (in this case railroads) were taxed equally.

The dissenting opinion in the case of Delaware, Lackawanna and Western Railroad Company v. Town of Morristown et al., argued that the majority's decision was inconsistent with previous rulings on similar matters. The dissent contended that a state should not be allowed to tax property located outside its jurisdiction, even if it is owned by a corporation operating within its borders. They believed this violated principles of interstate commerce and due process under the Constitution. Furthermore, they disagreed with the majority's interpretation of New Jersey law regarding taxation powers over railroad companies' properties situated out-of-state for use in their operations within New Jersey. In essence, they felt that allowing such taxes would create an unfair burden on corporations conducting business across multiple states.