The U.S. Supreme Court case Louisville and Jeffersonville Ferry Company v. Kentucky in 1902 revolved around a dispute over taxation of property used for interstate commerce. The state of Kentucky had imposed taxes on the ferry company, which operated boats between Indiana and Kentucky across the Ohio River, arguing that it was within its rights to tax any property located within its borders. However, the ferry company contended that this violated their constitutional protection against states imposing burdens on interstate commerce as per Article I Section 8 Clause 3 (the Commerce Clause) of the U.S Constitution. The Supreme Court ruled in favor of Kentucky, stating that while states cannot interfere with or impose burdens on interstate commerce directly through taxation or otherwise, they can tax personal property like ships involved in such trade if those properties are situated within their jurisdiction for purposes other than mere transit during taxing periods. This ruling upheld states' rights to levy taxes on businesses operating within their boundaries even when these businesses engage primarily in activities related to interstate commerce - provided such levies do not obstruct free flow of trade among different states.

In the dissenting opinion for Louisville and Jeffersonville Ferry Company v. Kentucky, Justice Harlan argued that the majority's decision was inconsistent with previous rulings of the court. He contended that a corporation chartered by one state should not be exempt from taxation in another state where it conducts business operations. The justice believed this principle to be fundamental to federalism and fair interstate commerce practices. Furthermore, he expressed concern over potential tax evasion if corporations could avoid taxes simply by incorporating in states other than where they primarily operate or generate revenue. In his view, such an interpretation would lead to unjust results and undermine public confidence in corporate law.