In the case of Postal Telegraph-Cable Company v. City of Fremont in 1920, the U.S Supreme Court ruled on a dispute between a telegraph company and a city over taxation. The Postal Telegraph-Cable Company argued that it was being unfairly taxed by the City of Fremont, Nebraska for its poles and wires located within city limits. The company claimed this tax violated both state law and their constitutional rights under the Fourteenth Amendment's Equal Protection Clause because other similar companies were not subjected to such taxes. However, the court sided with Fremont ruling that there was no violation as long as all property owners were treated equally according to local laws regarding taxation regardless if they are individuals or corporations like telegraph companies.

In the dissenting opinion for Postal Telegraph-Cable Company v. City of Fremont, Justice McReynolds disagreed with the majority's decision to uphold a Nebraska law that allowed cities to charge telegraph companies for using public streets and alleys. He argued that this was an unconstitutional interference with interstate commerce because it imposed a tax on messages sent from one state to another. According to him, only Congress has the power to regulate interstate commerce under Article I, Section 8 of the Constitution. Therefore, he believed that states should not be able to impose taxes or fees on businesses involved in such activities without congressional approval. Furthermore, he contended that allowing individual municipalities within each state could lead to inconsistent regulations across different jurisdictions which would create confusion and uncertainty for businesses operating nationwide.