In the case of Herndon, Prosecuting Attorney of Clinton County, Missouri and Swanger (Roach), Secretary of State of Missouri v. Chicago, Rock Island and Pacific Railway Company in 1909, the Supreme Court ruled on a dispute involving state taxation powers over interstate commerce. The railway company had been assessed for taxes by the state based on its total property value within Missouri's borders. However, it argued that this assessment was unconstitutional because it included properties used for interstate commerce activities which were protected from such taxation under federal law. The court sided with the railway company stating that while states have broad taxing power over corporations operating within their boundaries they cannot tax assets involved directly in interstate commerce as these fall under federal jurisdiction according to Commerce Clause protections.

In the dissenting opinion for Herndon v. Chicago, Rock Island and Pacific Railway Company, it was argued that the majority's decision to invalidate a Missouri law requiring railroads to maintain fences along their tracks was incorrect. The dissent maintained that this law did not violate the Fourteenth Amendment's Due Process Clause as claimed by the railway company because it served a legitimate public interest in promoting safety and preventing livestock from wandering onto railroad tracks. Furthermore, they contended that such regulations were within states' police powers to regulate businesses operating within their borders for public welfare purposes. They also disagreed with the majority's view that this requirement constituted an undue burden on interstate commerce since similar laws existed in other states without causing disruption or hardship for railroads.