In the case of St. Louis v. Western Union Telegraph Company in 1892, the city of St. Louis sued Western Union for unpaid taxes on telegraph poles and wires within its jurisdiction from 1870 to 1883. The Supreme Court ruled in favor of Western Union, stating that under federal law, states could not tax property used for interstate commerce such as telegraph lines without explicit permission from Congress. The court reasoned that if each state were allowed to impose their own taxes on these properties it would create a chaotic and unmanageable system due to varying rates across different jurisdictions which could potentially hinder interstate commerce operations significantly.

In the dissenting opinion for the case of St. Louis v. Western Union Telegraph Company, it was argued that a city has no right to charge a telegraph company for using its public streets to run lines if those lines are used primarily for interstate communication. The dissenting justices believed that such use falls under federal jurisdiction and is protected by the Commerce Clause of the U.S Constitution, which gives Congress exclusive power over interstate commerce. They contended that allowing cities to impose fees on companies engaged in interstate commerce would lead to an untenable situation where every municipality could levy their own charges, potentially disrupting or even halting this vital national activity. Therefore, they disagreed with majority's decision upholding St.Louis' authority to charge Western Union Telegraph Company for using its public streets.