In the case of Town of Essex v. New England Telegraph Company of Massachusetts (1916), the U.S Supreme Court ruled in favor of the telegraph company, stating that it was not required to pay taxes on its poles and wires located within town limits. The court held that these properties were personal property used for public purposes and therefore exempt from taxation under state law. This decision upheld a previous ruling by the Massachusetts Supreme Judicial Court which had also found in favor of the telegraph company. The Town argued unsuccessfully that because these properties were physically situated within its boundaries, they should be subject to local taxation.

In the dissenting opinion for Town of Essex v. New England Telegraph Company of Massachusetts, it was argued that the majority's decision to allow a town to tax a telegraph company based on all its property, including those located outside the jurisdiction of said town, was erroneous. The dissenting justices believed this ruling violated principles of fairness and due process as established by previous case law. They contended that only properties within a particular jurisdiction should be subject to taxation by that authority; anything beyond such limits would constitute an overreach in power. Furthermore, they expressed concerns about potential negative implications for interstate commerce if local governments were allowed to impose taxes on businesses' out-of-state assets or operations.