In the case of The People of the State of New York ex rel. Twenty-Third Street Railway Company v. State Board of Tax Commissioners, 1904, the Supreme Court was tasked with determining whether a state tax on franchises violated constitutional protections against double taxation and deprivation without due process. The railway company argued that it had already been taxed for its property value and that an additional franchise tax constituted double taxation. However, the court ruled in favor of the state board by distinguishing between taxes levied on physical property versus those imposed on intangible assets like business privileges or franchises. It held that these are separate entities subject to individual taxation under law; therefore, no violation occurred regarding either double-taxation or due process rights.

In the dissenting opinion for The People of the State of New York ex rel. Twenty-Third Street Railway Company v. State Board of Tax Commissioners, Justice Harlan disagreed with the majority's ruling that a state could tax franchises granted by it to corporations operating within its borders without violating constitutional protections against impairment of contracts or taking property without due process. He argued that such taxation was not merely on business operations but also on property rights conferred by franchise grants, which he believed were protected from arbitrary taxation under contract clause and due process principles. Furthermore, he contended that this case differed significantly from previous cases where similar taxes had been upheld because those involved franchises granted in exchange for specific public services rather than simply allowing operation within a state as here. Thus, he concluded that these taxes violated both federal and state constitutions' guarantees against impairing contractual obligations and depriving individuals or entities their property without just compensation.