In the case of Henderson Bridge Company v. Kentucky in 1896, the U.S Supreme Court ruled that a state has the power to regulate and control its own internal commerce. The dispute arose when Kentucky imposed a tax on the Henderson Bridge Company for every passenger and vehicle it transported across its bridge into Indiana. The company argued this was an interference with interstate commerce and therefore unconstitutional under federal law. However, the court upheld Kentucky's right to impose such taxes, stating that while Congress had authority over interstate commerce, states retained their sovereignty over matters within their borders unless explicitly prohibited by federal law or constitutionally forbidden powers. This decision reinforced states' rights concerning intrastate trade regulation.

In the dissenting opinion for Henderson Bridge Company v. Kentucky, it was argued that the majority's decision to uphold a state law taxing interstate commerce violated the Commerce Clause of the U.S. Constitution. The dissenting justices believed that this tax placed an undue burden on interstate commerce and thus should have been struck down as unconstitutional. They contended that allowing states to impose such taxes could lead to economic protectionism and disrupt national unity by encouraging states to favor their own local industries at the expense of out-of-state businesses. Furthermore, they asserted that only Congress has authority over interstate commerce under Article I, Section 8 of the Constitution; therefore, any state laws interfering with this power are invalid.