In the case of Illinois Central Railroad Company v. Greene, Auditor, et al., 1916, the U.S Supreme Court ruled in favor of the Illinois Central Railroad Company (ICRC). The ICRC had challenged a tax assessment by Kentucky's Board of Valuation and Assessment on its franchise to operate within state lines. The court held that while states have broad powers to levy taxes for public purposes, they cannot unfairly discriminate against interstate commerce or violate due process rights under the Fourteenth Amendment. In this instance, it was found that Kentucky’s method for assessing ICRC's property value was arbitrary and discriminatory because it included out-of-state assets not subject to taxation in Kentucky. This resulted in an inflated valuation which led to higher taxes than those imposed on similar local businesses operating solely within state borders. Therefore, such an assessment violated both principles: non-discrimination towards interstate commerce and due process rights under Fourteenth Amendment.

In the dissenting opinion for Illinois Central Railroad Company v. Greene, it was argued that the majority's decision to uphold Kentucky's method of taxing railroad companies based on their franchise value rather than physical property contradicted previous rulings and principles of fairness. The dissenters believed that this taxation method unfairly burdened interstate commerce by taxing not just the tangible assets within Kentucky, but also intangible ones outside its borders. They contended that a state should only have jurisdiction over property within its boundaries and thus, could only tax such properties. By allowing states to tax corporations based on an assessment of total corporate worth or earning power - which includes out-of-state operations - they feared it would lead to multiple instances of taxation from different states where these corporations operate; thereby creating undue burdens on them.