The Grand Gulf Railroad and Banking Company, along with Alfred Ingraham and George Read as assignees of the company, were plaintiffs in error against John R. Marshall. The case centered around a dispute over a bond issued by the state of Mississippi to aid in construction of the railroad. The Supreme Court held that bonds issued by states are not subject to taxation unless specifically authorized by law or contract between parties involved. In this case, there was no such authorization present so it was determined that Marshall had no right to tax the bond at issue here. This decision established an important precedent for future cases involving similar issues regarding state-issued bonds and their potential for taxation without explicit permission from all relevant parties involved.

In The Grand Gulf Railroad and Banking Company, et al. v. John R. Marshall, the Supreme Court was tasked with determining whether a state court had jurisdiction to hear a case involving an insolvent corporation chartered by another state. The majority of justices held that the lower court did not have jurisdiction because it violated the Constitution's Contract Clause which prohibits states from impairing contracts between private parties without due process of law or just compensation for any losses incurred as a result of such impairment. Justice McLean dissented from this opinion arguing that while he agreed with much of what was said in the majority opinion, he believed that there were certain exceptions to this rule when it came to corporations created by other states and thus felt that the lower court should have been allowed to exercise its jurisdiction over this particular case since Mississippi had already passed laws allowing them do so in cases involving insolvent out-of-state corporations like The Grand Gulf Railroad and Banking Company at issue here. He argued further that if Congress wanted to limit these powers they could pass legislation doing so but until then Mississippi should be able to use their own laws on matters within their own borders even if those laws conflict with those found elsewhere in America