In the 1913 case of Hammond Packing Company v. State of Montana, the U.S. Supreme Court ruled in favor of Montana, upholding its right to tax out-of-state corporations for property owned within state borders. The Hammond Packing Company, an Illinois-based corporation with a branch and property in Montana, argued that it was being unfairly taxed by the state as both a foreign and domestic entity. However, the court held that states have jurisdiction over all properties within their boundaries regardless of where their owners reside or are incorporated; thus they can levy taxes on such properties accordingly without violating constitutional principles like due process or equal protection under law. This decision reinforced states' authority to regulate commerce within their territories while also ensuring fair taxation practices across different types of businesses.

In the dissenting opinion for Hammond Packing Company v. State of Montana, it was argued that the state had no right to impose a tax on property located outside its jurisdiction. The justices contended that while states have broad powers to levy taxes, these powers are not unlimited and must respect constitutional boundaries. They further asserted that taxation should be based on benefits conferred by the government upon which it is levied, arguing in this case there were none as the company's assets were out-of-state. Therefore, they believed such an imposition constituted an arbitrary exercise of power without due process of law and violated interstate commerce protections under federal law.