17. Gibbons v. Ogden originated as an effort to break a harsh monopoly in the Orleans Territory
In 1808, the Legislature of the State of New York granted Robert Livingston and Robert Fulton exclusive navigation privileges over all waters within the jurisdiction of the state for a period of thirty years. Petitioning other states and territories for similar monopolies, only the Orleans Territory was as generous. Unsuccessfully challenged by competitors, who had to pay a franchise fee to Livingston and Fulton to operate boats, in 1818 Thomas Gibbons began operating his own steamboat on Aaron Ogden’s licensed waters. Infuriating the fee-paying Ogden, Gibbons claimed authority from Congress under a 1793 law regulating coasting trade.
Seeking an injunction against Gibbons in the Court of Errors in New York, the court found in favor of Ogden, arguing states often legislated on issues of interstate trade and their powers were concurrent with those of Congress. Appealing to the Supreme Court, Gibbons sought to destroy the monopoly crushing his business. Victorious, the court ruled that not only did any license issued by federal law take precedence over one issued by a state due to the Supremacy Clause, but Congress’ power to “regulate commerce” concerned more than just the commodities themselves, including also navigation and the internal workings of said trade.