In the case of Vandalia Railroad Company v. Schnull et al., 1920, the U.S Supreme Court was tasked with determining whether a state could impose taxes on interstate commerce. The dispute arose when Indiana imposed a tax on freight transported both within and across its borders by the Vandalia Railroad Company. The railroad company argued that this taxation violated their rights under the Commerce Clause of the Constitution, which gives Congress exclusive power to regulate interstate commerce. The Supreme Court ruled in favor of Schnull & Co., upholding Indiana's right to levy such taxes. They held that while states cannot directly tax interstate commerce or enact laws that discriminate against it, they can indirectly affect it through generally applicable laws like those imposing property or income taxes - even if these have some impact on interstate transactions. This decision clarified how far states could go in taxing businesses involved in both intrastate and interstate trade without infringing upon federal jurisdiction over cross-border commercial activity.

The dissenting opinion in the case of Vandalia Railroad Company v. Schnull et al., argued that the majority's decision to uphold a state law requiring railroads to provide free transportation for certain inspectors was unconstitutional. The dissent contended that this requirement constituted an unlawful taking of property without just compensation, violating the Fifth Amendment. They also maintained that it infringed upon interstate commerce by imposing additional burdens on railroad companies engaged in such commerce, thereby contravening federal authority over this area under the Commerce Clause of the Constitution. Furthermore, they disagreed with the majority's interpretation of previous court decisions and believed those cases did not support upholding such laws as constitutional.