In the case of Cincinnati, New Orleans & Texas Pacific Railroad Company v. Commonwealth of Kentucky, the Supreme Court was asked to decide whether the state of Kentucky had the right to tax the railroad company's property. The railroad company argued that the tax was unconstitutional because it violated the Commerce Clause of the United States Constitution. The Supreme Court held that the tax was unconstitutional because it discriminated against interstate commerce. The Court reasoned that the tax was not applied equally to all railroads, but instead was applied only to those railroads that operated in more than one state. The Court concluded that the tax was an unconstitutional burden on interstate commerce and therefore invalid. The decision of the Supreme Court established the principle that states cannot impose taxes that discriminate against interstate commerce.

In the case of Cincinnati, New Orleans & Texas Pacific Railroad Company v. Commonwealth of Kentucky, Chief Justice Waite delivered a dissenting opinion in which he argued that the railroad company had been denied due process under the Fourteenth Amendment to the United States Constitution. He noted that while it was true that states have broad powers over their internal affairs and could impose taxes on corporations within their borders, this power must be exercised in accordance with constitutional principles such as equal protection and due process. In this case, however, he argued that Kentucky had imposed an unconstitutional tax on the railroad company without providing any notice or opportunity for hearing prior to imposing it. This violated both procedural and substantive due process rights guaranteed by the Fourteenth Amendment since there was no way for them to challenge or appeal this decision before being forced to pay it. As such, Chief Justice Waite concluded that Kentucky's action constituted an unconstitutional deprivation of property without due process of law and should be overturned accordingly.