In the case of Keokuk and Western Railroad Company v. Missouri in 1893, the U.S Supreme Court ruled on a dispute involving taxation laws between states and railroad companies. The state of Missouri had imposed taxes on the Keokuk and Western Railroad Company for its property located within the state's borders. However, this included some properties that were not physically present in Missouri but were part of an interstate railway system operated by the company. The railroad company argued that this was unconstitutional as it violated commerce clause protections against discriminatory state taxation affecting interstate commerce. The court upheld Missouri's right to tax all properties owned by out-of-state corporations if they are used for intrastate business purposes or have a situs (location) within their jurisdiction - even if these assets also contribute to interstate operations. It concluded that such taxation does not interfere with Congress' power over interstate commerce because it is based on fair apportionment principles reflecting where those assets are actually located and how much they contribute to local versus overall corporate revenues.

In the dissenting opinion for Keokuk and Western Railroad Company v. Missouri, the justice argued that the majority's decision was inconsistent with previous rulings of the court regarding interstate commerce regulation. The justice contended that states should not have authority to regulate rates on interstate shipments as it would lead to a chaotic system where each state could impose its own rules, disrupting uniformity in trade practices across states. They believed this power belonged exclusively to Congress under the Commerce Clause of Constitution. Moreover, they expressed concern over potential harm caused by such regulations on railroad companies' operations and profitability which might eventually affect their ability to provide services effectively or even survive financially in long term.