In the case of Raymond, Treasurer of Cook County, Illinois v. Chicago Union Traction Company in 1907, the Supreme Court ruled on a dispute over taxation between Cook County and the Chicago Union Traction Company. The county had levied taxes against the company based on its capital stock value; however, this included property located outside of Illinois which was not subject to local tax laws. The traction company argued that this amounted to extraterritorial taxation and violated their constitutional rights under both due process and equal protection clauses. However, the court upheld Cook County's right to levy such taxes by ruling that it was within their jurisdiction as long as they were fairly apportioned according to where properties are situated or business is transacted.

In the dissenting opinion for Raymond, Treasurer of Cook County, Illinois v. Chicago Union Traction Company, Justice Harlan argued that the majority's decision was inconsistent with previous rulings and principles of justice. He contended that a corporation should not be exempt from paying taxes on its property simply because it is used to provide public services. The fact that a company operates under a franchise granted by the state does not mean it can avoid taxation; rather, this makes its assets more valuable and thus liable to higher tax rates. Furthermore, he disagreed with the majority's interpretation of "capital stock" as referring only to shares issued by corporations; in his view, capital stock also includes corporate property or assets which are subject to taxation. Therefore, he believed that Cook County had acted within its rights when taxing Chicago Union Traction based on both their tangible properties and franchises.