Dispute-
The State of New York had granted a steamboat company, whose boats were operated by Aaron Ogden, exclusive right to navigate the Hudson River between New York and New Jersey. This monopoly was challenged by a steamboat owner of the name Thomas Gibbons, who was operating under a federal license appointed by Congress. The competition was immediately noticed and brought to court as Gibbons was breaking New York State law by navigating the Hudson. The New York courts maintained Gibbons could not travel on the Hudson as it violated the state’s grant of a monopoly to Ogden. However, when brought to the Supreme Court, the state’s ability to grant such a monopoly was drawn into question as it was a regulation of interstate commerce, a power exclusively granted in the Constitution to Congress.
Constitutional Principle in Question: “The Congress shall have Power... To regulate Commerce among the several States.” Article I Section 8 Clause 3. Whether or not this steamboat controversy was a matter of interstate commerce was what John Marshall needed to decide, and whether therefore the states had the rights to grant a monopoly.
Significance- John Marshall overrules the State of New York in saying that the ability to regulate interstate commerce is the sole responsibility of Congress and cannot be enforced by state legislature, such as was the case in New York. He established in his decision that commerce is inclusive of navigation and that Congress’ power was “complete in itself.” Therefore, states had no jurisdiction in such matters and Ogden’s monopoly was void. The profound impact of this ruling is multi-layered. First, Marshall is indicating further that the Supreme Court can and will exercise its right to interpret the Constitution through judicial review. Additionally, Marshall is explicitly establishing the precedent states powers to create monopolies was absolutely nullified. Lastly, and arguably most significantly, it marks a concerted effort Marshall is making to consolidate the powers of government further in the hands of the federal government over state legislature.
The State of New York had granted a steamboat company, whose boats were operated by Aaron Ogden, exclusive right to navigate the Hudson River between New York and New Jersey. This monopoly was challenged by a steamboat owner of the name Thomas Gibbons, who was operating under a federal license appointed by Congress. The competition was immediately noticed and brought to court as Gibbons was breaking New York State law by navigating the Hudson. The New York courts maintained Gibbons could not travel on the Hudson as it violated the state’s grant of a monopoly to Ogden. However, when brought to the Supreme Court, the state’s ability to grant such a monopoly was drawn into question as it was a regulation of interstate commerce, a power exclusively granted in the Constitution to Congress.
Constitutional Principle in Question: “The Congress shall have Power... To regulate Commerce among the several States.” Article I Section 8 Clause 3. Whether or not this steamboat controversy was a matter of interstate commerce was what John Marshall needed to decide, and whether therefore the states had the rights to grant a monopoly.
Significance- John Marshall overrules the State of New York in saying that the ability to regulate interstate commerce is the sole responsibility of Congress and cannot be enforced by state legislature, such as was the case in New York. He established in his decision that commerce is inclusive of navigation and that Congress’ power was “complete in itself.” Therefore, states had no jurisdiction in such matters and Ogden’s monopoly was void. The profound impact of this ruling is multi-layered. First, Marshall is indicating further that the Supreme Court can and will exercise its right to interpret the Constitution through judicial review. Additionally, Marshall is explicitly establishing the precedent states powers to create monopolies was absolutely nullified. Lastly, and arguably most significantly, it marks a concerted effort Marshall is making to consolidate the powers of government further in the hands of the federal government over state legislature.
