This case was a dispute between the City of Jonesboro and the Cairo and St. Louis Railroad Company. The City of Jonesboro had passed an ordinance that required the railroad company to build a fence along the railroad tracks that ran through the city. The railroad company argued that the ordinance was unconstitutional because it violated the Commerce Clause of the United States Constitution. The Supreme Court agreed with the railroad company and held that the ordinance was unconstitutional because it interfered with interstate commerce. The Court held that the ordinance was an unconstitutional burden on interstate commerce and that the City of Jonesboro had no authority to regulate interstate commerce. The Court also held that the ordinance was an unconstitutional taking of private property without just compensation.

In Jonesboro City v. Cairo & St. Louis Railroad Company & Another, the Supreme Court was asked to decide whether a city could tax railroad companies for their property within its limits. The majority opinion held that cities had no authority to impose such taxes, as it would interfere with interstate commerce and be in violation of the Commerce Clause of the Constitution. Justice Field dissented from this decision, arguing that states have traditionally been able to regulate and tax businesses operating within their borders without interference from Congress or other states; therefore, he argued that cities should also be allowed to do so if they choose. He further noted that while there may be some potential issues with taxation interfering with interstate commerce in certain cases, those concerns were not present here since both railroads operated entirely within one state's boundaries and thus posed no threat of disruption between different states' economies or laws.