In the 1892 case of Illinois Central Railroad Company v. Decatur, the U.S Supreme Court ruled on a dispute between a railroad company and a city over taxation. The City of Decatur in Illinois had imposed taxes on the Illinois Central Railroad Company for its property within city limits. However, the railroad company argued that it was exempt from such local taxes due to an earlier state law granting it immunity from all but specific state-level taxes. The court sided with the City of Decatur, ruling that while states could grant tax exemptions to corporations or entities as they saw fit, these exemptions did not automatically extend to municipal level taxation unless explicitly stated in legislation. Therefore, unless specifically mentioned by state laws providing tax exemption at both levels (state and municipal), companies were still subject to local taxation.

In the dissenting opinion for Illinois Central Railroad Company v. Decatur, it was argued that the majority's decision to uphold a statute requiring railroads to provide equal facilities and services regardless of location contradicted previous rulings on similar cases. The dissenting justices believed that this law interfered with the railroad company's right to manage its own affairs and make business decisions based on economic feasibility. They contended that while states have regulatory power over corporations, they cannot dictate specific operational details or force companies into unprofitable arrangements under the guise of public interest regulation. Furthermore, they disagreed with the majority’s interpretation of “equal” as meaning identical in every respect rather than fair or reasonable considering all circumstances. This ruling could set a dangerous precedent by allowing government interference in private businesses beyond what is necessary for public welfare.