In the Howard v. Fleming case of 1903, the U.S Supreme Court ruled on a dispute involving railroad bonds issued by Fulton County in Georgia. The county had initially issued these bonds to aid in constructing a railroad but later refused to pay them off, arguing that they were unconstitutional under state law and thus invalid. However, bondholders disagreed and took legal action against the county for payment. The court sided with the bondholders, ruling that Fulton County was obligated to honor its debts as it had willingly entered into an agreement when issuing those bonds. Furthermore, since these bonds were sold on public markets where investors relied upon their validity for purchase decisions; repudiating them would undermine confidence in such securities which could have broader economic implications. This decision reinforced principles of contract law and creditor rights while also emphasizing states' responsibilities towards maintaining trust within financial markets.

In the dissenting opinion for Howard v. Fleming, Justice Harlan disagreed with the majority's decision to uphold a tax on railroad bonds issued by municipalities in Georgia. He argued that this violated contracts between bondholders and municipalities, which were protected under the Constitution's Contract Clause. According to Justice Harlan, these bonds were exempt from taxation at the time they were issued as per state law; thus any subsequent attempt to impose taxes was unconstitutional. The justice also pointed out that such an action could potentially undermine public confidence in municipal obligations and discourage future investment in public infrastructure projects.