The Memphis Natural Gas Co. v. Stone, Chairman, State Tax Commission case in 1947 revolved around the issue of taxation on interstate commerce and whether it violated the Commerce Clause of the U.S Constitution. The Memphis Natural Gas Company was an interstate pipeline company that transported gas from Texas to Tennessee and other states. The Mississippi State Tax Commission imposed a tax on the company for transporting gas through its state lines which led to this dispute. The Supreme Court ruled in favor of Memphis Natural Gas Co., stating that Mississippi's tax was unconstitutional as it interfered with interstate commerce by taxing activities outside its jurisdictional boundaries - specifically, those occurring within Tennessee where the natural gas was consumed after transportation via pipelines crossing multiple state borders including Mississippi’s. This decision reinforced principles limiting individual states' power over interstate commerce under federal law while also emphasizing their inability to impose taxes on transactions or activities taking place beyond their territorial limits.

In the dissenting opinion for Memphis Natural Gas Co. v. Stone, Justice Murphy disagreed with the majority's decision that Mississippi could tax a natural gas company based in Tennessee for its use of pipelines running through Mississippi. He argued that this taxation was unconstitutional because it violated the Commerce Clause by placing an undue burden on interstate commerce. According to him, if every state were allowed to impose such taxes on businesses operating across their borders, it would create a chaotic and unmanageable situation for those businesses due to differing tax laws and rates among states. This would ultimately hinder free trade between states which is contrary to what framers intended when they drafted the Constitution.