In the 1898 case of McCain v. Des Moines, the U.S Supreme Court was tasked with determining whether a city could legally tax telegraph companies for poles and wires that were installed on public property. The plaintiff, McCain, represented a telegraph company which argued that such taxation constituted an illegal interference with interstate commerce. However, the court ruled in favor of Des Moines stating that cities have the right to impose reasonable regulations and charges upon businesses using public spaces for private gain. The decision upheld municipalities' rights to levy taxes or fees on utilities utilizing public lands for their infrastructure while also affirming federal control over interstate commerce by clarifying these levies did not interfere with it.

The dissenting opinion in the McCain v. Des Moines case argued that the majority's decision was an overreach of judicial power, infringing upon states' rights to manage their own affairs. The justices contended that it is not within the purview of federal courts to interfere with state legislation unless there is a clear violation of constitutional rights or federal law. They maintained that Iowa had acted within its jurisdiction by implementing laws aimed at regulating railroad rates and protecting consumers from exorbitant charges. Furthermore, they disagreed with the majority's interpretation of 'due process,' arguing it should only apply when there has been a denial of justice under law rather than as a tool for economic regulation or protection against unfair business practices. The dissenters also expressed concern about setting precedent where federal courts could potentially overturn any state legislation deemed unfavorable by businesses, thus undermining states' sovereignty and democratic processes.