People v. Central Railroad was a case heard by the United States Supreme Court in 1871. The case involved a dispute between the People of the State of New York and the Central Railroad Company of New Jersey. The People of New York had brought a suit against the Central Railroad Company of New Jersey, alleging that the company had violated the terms of its charter by failing to pay taxes on certain property. The People of New York argued that the company had failed to pay taxes on certain property that was located in New York, and that this failure constituted a breach of the company's charter. The Supreme Court ultimately ruled in favor of the People of New York, finding that the Central Railroad Company of New Jersey had indeed violated the terms of its charter by failing to pay taxes on certain property located in New York. The Court held that the company was liable for the taxes that it had failed to pay, and ordered the company to pay the taxes in full. This ruling established the precedent that companies must abide by the terms of their charters, and that failure to do so can result in legal liability.

In People v. Central Railroad, the Supreme Court was tasked with determining whether a state had the power to tax railroad companies that operated within its borders. The majority of justices held that states did have this authority and affirmed the decision of the lower court. However, Justice Field dissented from this opinion on two grounds: firstly, he argued that Congress had exclusive jurisdiction over interstate commerce and thus could not be taxed by individual states; secondly, he maintained that taxation should only be used for public purposes rather than as a means of raising revenue for private interests or individuals. He concluded his dissent by stating “The power to tax involves in some degree at least an exercise of sovereignty which is inconsistent with any other government exercising it within the same limits”