In the case of Iowa v. McFarland, Commissioner, the Supreme Court was asked to decide whether the state of Iowa was entitled to a five percent commission on the sale of certain lands. The state argued that it was entitled to the commission under a state law that provided for such a commission. The Commissioner of the General Land Office, however, argued that the state was not entitled to the commission because the lands in question were not subject to the state law. The Supreme Court held that the state was entitled to the commission. The Court reasoned that the state law was valid and that the lands in question were subject to the state law. The Court further held that the state was entitled to the commission even though the lands were sold by the federal government. The Court reasoned that the state law was valid and that the state was entitled to the commission regardless of who sold the lands. In conclusion, the Supreme Court held that the state of Iowa was entitled to a five percent commission on the sale of certain lands. The Court reasoned that the state law was valid and that the lands in question were subject to the state law. The Court further held that the state was entitled to the commission even though the lands were sold by the federal government.

In Iowa v. McFarland, Commissioner, the Supreme Court was asked to decide whether a state tax imposed on certain railroad companies could be collected from them by the State of Iowa. The majority opinion held that it could not because it violated the Contract Clause of the United States Constitution. However, Justice Field dissented and argued that states have broad authority to impose taxes on corporations within their borders and that this particular tax did not violate any constitutional provision or contract between parties. He noted that while some might disagree with such taxation as being too burdensome for businesses operating in multiple states, he believed it was within a state's power to do so if they chose. Furthermore, he reasoned that since there were no contracts involved here and no violation of any other constitutional provisions at issue, then Iowa should be allowed to collect its due taxes from these railroads without interference from federal courts.