In the 1917 case of William E. Peck & Company, Incorporated v. Lowe, Collector of Internal Revenue, Second District of New York, the U.S Supreme Court was tasked with determining whether a tax imposed on foreign corporations doing business within the United States violated constitutional principles. The plaintiff argued that this taxation constituted an infringement upon their rights under both the Due Process Clause and Commerce Clause of the Constitution. However, in its decision, the court upheld such taxation as constitutionally valid. It reasoned that while states cannot impede or burden interstate commerce through discriminatory taxes against out-of-state entities (as per previous rulings), Congress possesses broader powers to regulate and tax all forms of commerce - including international trade activities conducted by foreign corporations operating domestically.

In the dissenting opinion for William E. Peck & Company, Incorporated v. Lowe, it was argued that the majority's decision to uphold a tax on foreign corporations doing business in America violated principles of international law and comity among nations. The dissenters believed that such taxation could potentially lead to retaliatory measures by other countries against American businesses operating abroad, thereby harming U.S economic interests globally. They also contended that this ruling contradicted previous Supreme Court decisions which had held that Congress lacked constitutional authority to impose taxes on foreign entities unless they were engaged in domestic commerce or owned property within the United States. Furthermore, they expressed concern about potential negative impacts on free trade and international relations due to perceived unfair treatment of foreign companies under U.S tax laws.