In the case of State of Washington v. W.C. Dawson & Company in 1923, the Supreme Court ruled on a dispute involving taxation and interstate commerce. The state of Washington had imposed a tax on fish caught within its waters but canned for sale outside the state by W.C. Dawson & Company, an Alaska-based company operating canneries in Washington's territorial waters under federal licenses granted pursuant to Congressional legislation regulating Alaskan fisheries. The court held that this tax was unconstitutional as it interfered with interstate commerce and violated provisions of federal law governing Alaskan fisheries which preempted any such state taxation. The decision emphasized that while states have broad powers to levy taxes, they cannot do so in ways that interfere with federally regulated activities or impede free trade among states under the Commerce Clause of the U.S Constitution.

In the dissenting opinion for the case of State of Washington v. W.C. Dawson & Company, Justice Holmes argued that the majority's decision to uphold a state law prohibiting private employment agencies from charging fees was an overreach and violated constitutional principles of economic liberty. He contended that while states have broad powers to regulate businesses in order to protect public welfare, these powers should not be used arbitrarily or oppressively against certain types of businesses without clear justification. In this case, he saw no compelling evidence that private employment agencies were inherently harmful or exploitative; rather they provided a valuable service by connecting job seekers with employers. Therefore, banning them from charging fees amounted to an unjustified interference with their freedom to contract and conduct business as they see fit - rights which are protected under the Fourteenth Amendment's Due Process Clause according to his interpretation.