In the 1913 case of Singer Sewing Machine Company v. Brickell, Attorney General of the State of Alabama, the Supreme Court ruled in favor of Singer Sewing Machine Co., overturning a decision by an Alabama court that had upheld a state law imposing taxes on out-of-state corporations operating within its borders. The law required foreign corporations to pay license fees and franchise taxes based on their total capital stock, regardless if only part was used for business operations in Alabama. The Supreme Court held this as unconstitutional under both Due Process Clause and Commerce Clause because it subjected companies to double taxation - once where they were incorporated and again in Alabama - without considering how much business was actually conducted there.

In the dissenting opinion for Singer Sewing Machine Company v. Brickell, it was argued that the majority's decision to uphold Alabama's license tax on out-of-state corporations violated both due process and equal protection clauses of the Fourteenth Amendment. The dissent contended that this law unfairly discriminated against foreign corporations by imposing a heavier burden on them than domestic ones, thereby creating an unjustifiable barrier to interstate commerce. They also disagreed with the majority’s view that such taxation did not constitute regulation of interstate commerce but merely a legitimate exercise of state power over local aspects of business operations within its borders. Instead, they believed it amounted to an unconstitutional interference with interstate commerce as it effectively penalized companies for doing business across state lines.