The Memphis Steam Laundry Cleaner, Inc. v. Stone case in 1951 revolved around the issue of taxation and interstate commerce. The State Tax Commission of Mississippi imposed a tax on laundry services provided by Memphis Steam Laundry Cleaner, Inc., an out-of-state company that serviced customers within Mississippi but performed all cleaning operations outside state lines. The Supreme Court ruled in favor of the State Tax Commission, stating that it was within its rights to impose such a tax as long as it did not discriminate against interstate commerce or cause undue burden upon it. This decision upheld the principle that states have authority to levy taxes on businesses operating across state borders if those businesses benefit from what is paid for by those taxes - like local infrastructure and public services.

In the dissenting opinion for Memphis Steam Laundry Cleaner, Inc. v. Stone, Chairman, State Tax Commission (1951), Justice Robert H. Jackson disagreed with the majority's decision to invalidate a Tennessee tax on laundry services provided to non-residents of the state but performed within its borders. He argued that states should have broad authority to levy taxes as they see fit and that this power is essential for their financial stability and independence from federal control. Furthermore, he contended that there was no constitutional principle or precedent preventing a state from taxing services rendered within its territory regardless of where the customer resides or uses these services later on. In his view, striking down such taxes would create an impractical standard requiring states to track every service transaction across their borders which could lead them into absurdities and administrative nightmares.