The U.S. Supreme Court case Texas Transport & Terminal Company, Inc. v. City of New Orleans in 1923 revolved around a dispute over the validity and enforcement of certain ordinances enacted by the city council of New Orleans that affected wharfage charges for vessels using public wharves owned by the city. The Texas Transport & Terminal Company argued these ordinances were unconstitutional as they violated both due process and equal protection clauses under Fourteenth Amendment rights, asserting that they were discriminatory against interstate commerce. However, after careful consideration, the Supreme Court ruled in favor of the City of New Orleans stating that there was no violation or discrimination against interstate commerce since all vessels - whether engaged in foreign or domestic trade - were subjected to same rates without any distinction whatsoever based on their origin or destination points. Furthermore, it held that such regulations fell within legitimate exercise of police power vested with states (or municipalities) to regulate use and operation of its own property for public benefit; hence did not infringe upon constitutional protections provided under Fourteenth Amendment.

In the dissenting opinion for Texas Transport & Terminal Company, Inc. v. City of New Orleans, Justice Holmes argued that the city had no right to impose a tax on interstate commerce activities conducted by the plaintiff company within its boundaries. He believed that such taxation was unconstitutional as it interfered with federal control over interstate commerce and violated principles of economic freedom and fairness. The justice contended that local governments should not be allowed to exploit their geographical position or monopolistic power to levy taxes on businesses engaged in national trade operations passing through their jurisdiction, which could potentially disrupt free market competition and impede commercial progress across state lines.