In the 1909 case of Western Union Telegraph Company v. The State of Kansas, the U.S. Supreme Court ruled in favor of Western Union, declaring a Kansas statute unconstitutional. The law required out-of-state corporations operating within state borders to appoint an agent for service processes and obtain a license from the Secretary of State before conducting business in Kansas. If they failed to do so, it authorized penalties including fines and imprisonment for corporate officers or agents who violated these provisions. However, since telegraph companies were already federally regulated under the Post Roads Act (1866), which granted them rights-of-way along post roads and other federal lands in exchange for providing government services at reduced rates, this created conflict between state and federal laws. The court held that states could not impose additional regulations on interstate commerce entities beyond those set by Congress as it would interfere with their operations across state lines - a violation of the Commerce Clause (Article I Section 8) which gives Congress exclusive power over interstate commerce regulation.

In the dissenting opinion for Western Union Telegraph Company v. The State of Kansas, Justice Moody argued that the majority's decision to uphold a state law imposing a tax on telegraph companies operating in multiple states was incorrect. He believed this violated the Commerce Clause of the Constitution, which gives Congress exclusive power over interstate commerce. According to him, it is not within a state's authority to regulate or tax businesses involved in interstate commerce as it could lead to conflicting and potentially burdensome regulations from different states. Furthermore, he contended that if each state were allowed such powers, they could effectively control and even destroy these types of businesses by imposing excessive taxes or regulations upon them - an outcome contrary to what framers intended with the Commerce Clause.