Fon THE TeacHsn
QuickReference
Tbe Issue: The state of New York required a state license to operate a ferry-inthis case, to operate berween NewYork and NewJersey. Howevegthe
federal government issued licenses to operate in interstate waters. This put
the federal and state governments at odds as to which entity had the authority to grant such licenses.
Tbe Players:
Thomas Gibbons-Operated aferry licensed by the United States.
Aaron Ogden-Operated a ferry licensed by the state of New York. Filed
suit against Gibbons.
John Marshall-ChiefJustice of the Supreme Court.
The Ruling: New York made Gibbons stop operating the ferry because he
didni hold their license. Gibbons appealed the case to the Supreme Court,
which overturned the statet ruling stating that only the U.S, Congress had
the authority to regulate interstate commerce.
Significance: In this case, the court ruled that interstate commerce did not
just refer to the buying and selling of goods and services between parties of
two or more states. Commerce, accotding to the couft, also referred to any
interaction that occurred between states, This greatly increased the reach of
Congress, because as the definition of interstate commerce was made expandable, so was the power wielded over
it.
2t
Bockground
Gibbons u. Ogden (L524) is another of the sweeping early landmark deci-
it is not aparticalarly exciting case in
terms of human drama,it is important in its effects on the scope of power of
sions of the Supreme Court. Although
the national government. Specifically, its ruling on interstate commerce was
just the beginning of the national government's expanding power over business. Throughout the nation's history, the definition of interstate commerce
has broadened well beyond the court's ruling in Gibbons, but this expanding
power started here.
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SUPREME COURT DECISIONS
SscrroN
Trrs SrsaMeoAT CorvtnovERSY
Benjamin Bryce opened the door quickly, but still let the harsh winter
in with him before pulling it closed against the wind. He trudged into the
kitchen of his New York home without bothering to take offhis muddy boots
and sat down hard at the table where he rested before summonin gthe energy
to light a kerosene lamp. The lamp light on his face exaggerutedthe lines hed
earned from 30 years of sailing the Hudson River.
"Gracious, Benjamin, yor're exhaustedj' Mary spoke quietly from the
darkened hallway door.'A busy dayi"
Benjamin rubbed his calloused hands over his face and beard-an attempt
at rejuvenation."Yes. Busy- I spent the morning with lawyers from the state.
The rest of the day I spent making up for the lost timel'
Benjamin Bryce lived the only life he ever wanted and the only life he ever
knewr that of a sailor. His years of toil had made him an expert on the treacherous waters of the Hudson River. He'd worked as a pilot, then as a captain
of his own ship, and finally was rewarded with a coveted license, granted by
the federal government to provide steamboat service in interstate waters. The
work was grueling often keeping him on the water for days et a time, but he
had a good crew. The government did not grant many such licenses.In fact,
Benjamin possessed the only one for his area. The result: long days, yes, but
they meant a monopoly fortune earnedfor Benjamin,
Mary Btyce sat down across thetable."Lawyersi Whatever forl"
He pulled a folded sheet of parchment from his breast pocket and flipped
it to her across the table, Mary opened the stiffpap er carcfuIly and read. After
a minute or rwo she looked up.
"The state of New York is ordering you to stop doing businessi How can
they do that?"
"The state insists thatithas the power to issue licenses to operators in its
waters, and I dont have one of those, New York has licensedJosephJohnston
to operate here, not me.
"But, you abeadyhave alicense , , i'Mary began.
"Of course I do!" he snapped. Then, more calmly, "Of course I do, from
the United States herself'
"What did you do Benjamini What willyoadoi" she asked, worry painted
across her face.
"I told them Id see them in court. Then,I went to worki'
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Cowt
Decisions @
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pl'Lge may be
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23
*:l t'-
$i
Trrs Acruar Casn
Graso^rs v. Oeonx (, gz+)
SscrroN
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Thomas Gibbons was a steamboat ferry owner who operated between
New York and New Jersey under the protection of a federal license established by aL793|aw. one of his competitors was Aaron Ogden. ogden held
a state license to operare in the same waters and believ"d thrt he should not
have any competition because he held a monopoly license (the right ro operate without competition).
ogden filed a complaint with the state of New York arguing that Gibbons
was operating illegally in warers in which the state had given Ogden the right
to hold a monopoly. The state of New York agreed with ogden and ordered
Gibbons to stop operating. Gibbons appealed this decision to the U.s.
Supreme Court (Mikula & Mabunda,L999),
THs Rur,rNc
The Supreme Court, under chiefjusticeJohn Marshall, ruled that New
York overstepped its authority in creatinga law that regulated inrersrare commerce.It would have been ridiculous to have bordering srares all require separate licenses and all be able ro granr conflicting monopolies for travelup and
down or across the same river! Regulation of interstate commefce, accotding to the Constitution, was a power reserved for Congress. No one really
argaed that Congress did not hold this power, but rather a key issue was
the definition of the word commerce itself.
As Marshall wrote: " . , . The mind can
scarcely conceive a sysrem for regulating
commerce between nations, which shall
exclude all laws concerning navigation
..l' (Gibbons u. Ogden j82al.The
court defined commerce not merely
as buying and selling goods (as
New York argued), but as
interaction, Thus, navigation
between states is within this
broad definition of commerce.
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25
\
Trrs ArrsnMATH
The Constitution gives Congress the power to regulate interstate commerce, but it does not define the word. This case is important in one sense
because it sets a definition to a power established by the Constitution. More
important, however, is the result of the Courtt definition. Because it defined
commerce in terms far beyond just buying and selling of goods, it greatly
increased the power of Congress. Now, because ofJohn Marshallt written
opinion, interstate commerce could be almost any sort of interstate interaction. This ruling ensured that Congress had the sole power of regulating
such interaction- Furthermore, because the ruling broadened the powers of
Congress, it also narrowed the powers of individual states in this area.
MarrNc Ir CunnsNr
Who is responsible for passing laws that govern the Interneti Can you
think o{ any problems that might occur if each state had its own Internet
lawsi
26
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i