The U.S. Supreme Court case Washington and Georgetown Railroad Company v. District of Columbia in 1892 revolved around the issue of taxation on a railroad company by the local government. The Washington and Georgetown Railroad Company argued that it was unjustly taxed by the District of Columbia for its roadbeds, tracks, and other property used to operate its business within city limits. The court ruled in favor of the District of Columbia, stating that such properties were indeed taxable as they were real estate assets located within their jurisdictional boundaries despite being used for interstate commerce purposes. This decision upheld municipalities' rights to tax businesses operating within their borders even if those businesses engage in activities extending beyond local or state lines.

In the dissenting opinion for Washington and Georgetown Railroad Company v. District of Columbia, Justice Brewer argued that the majority's decision to uphold a law requiring railroads to pave and maintain roads adjacent to their tracks was unjust. He contended that this requirement constituted an unfair burden on railroad companies, as it forced them to bear costs not related directly to their operations or profits. Furthermore, he asserted that such laws were discriminatory because they singled out one class of property owners (railroad companies) for special taxation without providing any corresponding benefits. He also expressed concern about the potential implications of this ruling on other industries if similar laws were enacted in other jurisdictions.