The U.S. Supreme Court case Fairmont Creamery Company v. Minnesota in 1927 revolved around the issue of taxation on goods stored temporarily in public warehouses within a state, but intended for shipment to another state or foreign country. The Fairmont Creamery Company, an out-of-state corporation operating in Nebraska and other states, challenged a tax imposed by Minnesota on its butter held temporarily at public cold storage warehouses before being shipped elsewhere. The company argued that this was an unconstitutional burden on interstate commerce under the Commerce Clause of the Constitution. However, the Supreme Court upheld Minnesota's right to impose such taxes as long as they were not discriminatory against interstate commerce and did not interfere with federal regulation of it. It ruled that while goods are located within a state for purposes beyond mere transit across it - even if their ultimate destination is outside that state - they can be subjected to non-discriminatory property taxes without violating constitutional principles regarding interstate commerce.

In the dissenting opinion for Fairmont Creamery Company v. Minnesota, it was argued that the state of Minnesota had a legitimate interest in regulating businesses within its borders to protect public health and welfare. The justice disagreed with the majority's view that such regulation constituted an undue burden on interstate commerce. They maintained that states should have broad powers to regulate local aspects of commerce, even if they indirectly affect interstate transactions. Furthermore, they contended that there was no evidence showing these regulations would significantly impede or obstruct interstate trade or create unfair competition between states. Therefore, according to this viewpoint, Minnesota’s law requiring all creameries operating within its borders to maintain certain facilities did not violate the Commerce Clause of the U.S Constitution.