The U.S. Supreme Court case Mackay Telegraph & Cable Company v. City of Little Rock in 1918 revolved around the issue of whether a city could impose an occupation tax on a telegraph company that was operating under federal license and whose lines extended beyond state boundaries. The court ruled in favor of the City of Little Rock, stating that it had the right to levy such taxes as long as they did not interfere with interstate commerce or discriminate against out-of-state entities. The decision upheld the principle that local governments can exercise their taxing power over businesses within their jurisdiction, even if those businesses are engaged in interstate commerce or operate under federal licenses.

In the dissenting opinion for Mackay Telegraph & Cable Company v. City of Little Rock, it was argued that the city's ordinance requiring a franchise to operate telegraph lines within its limits is not in conflict with federal law or constitution. The dissent emphasized that states have inherent power over their streets and public places, which includes granting franchises for use of these spaces by utilities like telegraph companies. It was also pointed out that Congress has never attempted to regulate this area nor expressed any intention to do so, thus there should be no preemption issue at hand. Furthermore, it was contended that even if such regulation did exist on a federal level, local authorities would still retain concurrent jurisdiction unless explicitly denied by Congress - something which had not occurred here either.