In the 1909 case of Pullman Company v. State of Kansas, the U.S. Supreme Court ruled in favor of the state, upholding its right to regulate businesses within its borders. The Pullman Company was a corporation that manufactured and operated railroad cars across multiple states but was incorporated only in Illinois. Kansas sought to compel it to obtain a certificate of incorporation within their state as well under their local laws for foreign corporations operating there. The company argued that this requirement violated both due process and equal protection clauses because they were already regulated by an interstate commerce commission at federal level which superseded any state regulation according to them. However, the court disagreed with Pullman's argument stating that while Congress had power over interstate commerce, it did not prevent individual states from controlling or imposing conditions on foreign corporations doing business within their boundaries unless such control interfered directly with Congress’s authority over interstate commerce - which wasn't proven here by Pullman Co.. Thus reinforcing dual sovereignty concept where both federal and state governments can regulate different aspects simultaneously without infringing upon each other's rights.

In the dissenting opinion for Pullman Company v. State of Kansas, Justice Harlan argued that the majority's decision to allow a state to regulate interstate commerce was in direct violation of federal law. He contended that while states have certain powers under their police authority, these powers do not extend into areas specifically regulated by Congress - such as interstate commerce. Harlan believed this ruling could lead to chaos and confusion if each state were allowed to impose its own regulations on companies operating across state lines. Furthermore, he expressed concern about potential harm caused by allowing states too much power over corporations chartered outside their borders. In his view, it would be more appropriate for disputes involving interstate businesses like Pullman Company to be resolved at the federal level rather than being subject to varying laws and regulations from individual states.