In the case of Rhodes v. Iowa in 1897, the U.S. Supreme Court ruled on a dispute involving interstate commerce and state taxation powers. The plaintiff, Rhodes, was an Illinois resident who owned a grain elevator in Iowa where he stored grain purchased from local farmers before shipping it out of state for sale. The State of Iowa taxed this operation as if it were entirely within its jurisdiction, but Rhodes argued that his business constituted interstate commerce and should therefore be exempt from such taxes under federal law. The Supreme Court sided with the State of Iowa, ruling that while some aspects of Rhode's business did involve interstate commerce (such as transporting goods across state lines), other parts clearly fell under the purview of local trade (like buying grain from local farmers). Therefore, these latter activities could be subjected to state taxation without infringing upon federal authority over interstate commerce. This decision reinforced states' rights to tax businesses operating within their borders even when those operations also involved elements of cross-border trade or transportation.

The dissenting opinion in the case of Rhodes v. Iowa argued that the majority's decision to uphold a state law prohibiting non-residents from hunting game was unconstitutional. The dissenters believed this law violated the Privileges and Immunities Clause of Article IV, Section 2, which guarantees citizens in each state all privileges and immunities granted to citizens in other states. They contended that hunting is a privilege enjoyed by residents of every state, thus it should not be denied to non-residents simply because they do not live within its borders. Furthermore, they disagreed with the majority's interpretation that wildlife conservation justified such discrimination against out-of-state hunters. In their view, if preservation were truly at stake then restrictions would apply equally to both residents and non-residents alike rather than being selectively enforced based on residency status alone.