In the 1891 case of Horn Silver Mining Company v. New York State, the U.S. Supreme Court ruled in favor of New York State, upholding its right to tax corporations incorporated outside of its jurisdiction but doing business within it. The Horn Silver Mining Company was a corporation established under Utah law but had an office and did business in New York City where it sold stocks and bonds to finance mining operations in Utah. The company argued that as they were not incorporated under New York law, they should not be subject to taxation by the state; however, their argument was rejected by both lower courts and eventually by the Supreme Court itself which held that states have authority over businesses operating within their borders regardless of where those businesses are incorporated.

The dissenting opinion in the case of Horn Silver Mining Company v. New York State argued that the majority's decision was inconsistent with previous rulings and interpretations of constitutional law. The dissent took issue with the court's interpretation of what constitutes a direct tax, arguing that it should be defined more broadly to include taxes on personal property and income derived from real estate or personal property. They believed this broader definition would better align with historical precedent and principles of fairness in taxation policy. Furthermore, they contended that by ruling otherwise, the Court effectively allowed states to impose discriminatory taxes on out-of-state corporations which could potentially harm interstate commerce - an area under federal jurisdiction according to the Commerce Clause in Constitution. Therefore, they disagreed with majority’s view considering such state-imposed tax as not violating any constitutional provision.