In the 1935 case Wheeling Steel Corp. v. Fox, State Tax Commissioner, et al., the U.S Supreme Court dealt with a dispute over state taxation of interstate commerce. The Wheeling Steel Corporation challenged West Virginia's tax on its gross receipts from sales of manufactured goods that were produced in-state but sold and delivered out-of-state. The corporation argued this was an unconstitutional burden on interstate commerce as per the Commerce Clause of the U.S Constitution which gives Congress exclusive power to regulate trade between states. The court ruled in favor of Wheeling Steel Corp., finding that West Virginia’s tax did indeed violate the Commerce Clause because it directly taxed interstate transactions rather than just affecting them indirectly through a general business or property tax. This decision reinforced federal supremacy over state laws when it comes to regulating and taxing interstate commerce.

In the dissenting opinion for Wheeling Steel Corp. v. Fox, Justice Stone argued that West Virginia's tax on the use of intangible property should not be considered a violation of due process or interstate commerce clause. He contended that since the corporation was using its capital and credit within state boundaries to conduct business operations, it was reasonable for West Virginia to impose a tax on these activities. The justice also disagreed with the majority’s view that this taxation interfered with interstate commerce, stating there is no constitutional prohibition against states taxing businesses operating within their borders even if they are involved in interstate trade as well. Furthermore, he believed such taxes were necessary for states to maintain infrastructure and services which benefit corporations like Wheeling Steel Corp., thereby justifying their imposition.