In the case of H.P. Welch Co. v. New Hampshire in 1938, the U.S Supreme Court upheld a decision by the state of New Hampshire to impose a tax on an out-of-state corporation for its business activities within the state's borders. The H.P Welch Company, based in Connecticut, argued that this taxation was unconstitutional as it violated their rights under both Due Process and Commerce Clauses of the Constitution since they were not physically present or domiciled in New Hampshire but merely had salesmen soliciting orders there which were accepted and filled from outside of NH. However, Justice Benjamin Cardozo writing for majority held that such taxes did not violate these constitutional provisions because states have power to levy taxes on corporations doing business within their jurisdiction even if they are incorporated elsewhere so long as those businesses enjoy protection and benefits provided by host state like police protection etc., thus establishing precedent allowing states to tax interstate commerce when companies benefit from services provided by taxing state.

In the dissenting opinion for H.P. Welch Co. v. New Hampshire, Justice Butler argued that the state of New Hampshire's imposition of a license fee on out-of-state corporations was unconstitutional as it violated the Commerce Clause and Equal Protection Clause of the U.S Constitution. He contended that this tax unfairly discriminated against interstate commerce by imposing an additional burden on out-of-state companies compared to in-state ones, thereby creating an unfair advantage for local businesses. Furthermore, he believed that such discrimination also infringed upon these companies' equal protection rights under the 14th Amendment because they were being treated differently based solely on their location outside of New Hampshire.