In the 1918 case of Merchants Exchange of St. Louis v. State of Missouri at the Relation of Barker, Attorney General, the U.S Supreme Court ruled on a dispute involving taxation and corporate rights. The state had imposed a tax on corporations based on their capital stock value, which was challenged by the Merchants Exchange as unconstitutional under both federal and state law. They argued that it violated equal protection principles because similar organizations were not taxed in this way and also infringed upon interstate commerce regulations due to its impact on out-of-state shareholders. However, the court upheld Missouri's right to impose such taxes, finding no violation of constitutional protections or interference with interstate commerce rules.

In the dissenting opinion for the case of Merchants Exchange of St. Louis v. State of Missouri, it was argued that the majority's decision to uphold a state law requiring foreign corporations to maintain an office and agent within Missouri as a condition for doing business in the state violated both due process and equal protection clauses under Fourteenth Amendment. The dissent contended that this requirement placed undue burden on interstate commerce by forcing out-of-state companies to establish physical presence in Missouri, thereby creating unfair competition with local businesses. It also challenged whether such regulation served any legitimate public interest or purpose beyond mere economic protectionism which is not constitutionally permissible. Furthermore, it questioned why domestic corporations were exempt from similar requirements thus potentially violating equal protection principles by treating similarly situated entities differently without rational basis.