Gibbons v. Ogden (1824) from TCI

• Gibbons v. Ogden (1824) was a Supreme Court case regarding steamboat operation rights.
• The New York legislature granted Livingston and Fulton exclusive steamboat operation rights in the state, including the Hudson River, which borders New York and New Jersey.
• Competitors were either bought out or given franchises by Livingston and Fulton to maintain their monopoly.
• Aaron Ogden, a former NJ governor, acquired a license, joining Livingston and Fulton's monopoly.
• Thomas Gibbons, Ogden's ex-partner, operated a competing boat service between NY and NJ under a federal license.
• Ogden sued Gibbons in New York, arguing against Gibbons' federal license.
• New York state court ruled for Ogden, issuing an injunction against Gibbons.
• Gibbons appealed, arguing Congress's control over interstate commerce under the Commerce Clause.
• The Supreme Court unanimously favored Gibbons, affirming Congress's power to regulate commerce "among the several states."

Opinion of the Court

• Chief Justice Marshall delivered the opinion.
• Gibbons argued that the NY law granting exclusive privilege was unconstitutional.
• The Constitution emerged from a change where allied sovereigns formed from a league to a government.
• The instrument enumerates powers granted by the people to their government.
• The powers should be construed against enlarged construction that stretches words beyond their natural meanings.
• The powers should be construed against narrow construction that cripples the government.
• The rule for construing such powers is given by the language of the instrument.
• Congress has the power to regulate commerce with foreign nations, among states, and with Indian tribes.
• Commerce includes traffic and intercourse between nations and their parts.
• Regulating commerce involves prescribing rules for conducting intercourse.
• A system for regulating commerce includes laws concerning navigation.
• If commerce excludes navigation, the federal government lacks direct power over it.
• Congress has the power to make laws, prescribing what constitutes American vessels.
• The power over commerce, including navigation, was a primary goal when adopting the government.
• The Constitution comprehends navigation within its meaning with power to regulate navigation.
• The Constitution extends to commerce "with foreign nations, and among the several States, and with the Indian tribes.”
• Commerce "among" states means intermingled and cannot stop at a state's boundary.
• The word "among" is restricted to commerce concerning more states than one.
• The completely internal commerce of a State is reserved for the State itself.
• The power to regulate is to prescribe the rule by which commerce is governed.
• The power vested in Congress may be exercised to its utmost extent, with limits prescribed in the Constitution.
• The sovereignty of Congress is limited to specified objects but is plenary as to those objects.
• This power comprehends navigation within every state if connected with commerce with foreign nations, among states, or with Indian tribes.
• States can exercise the same power within their jurisdictions unless they surrendered it by that instrument.
• Full power to regulate a subject implies the whole power, leaving no residuum.
• The grant of power to tax is in general terms but does not interfere with the states.
• State governments remain an important part of the system.
• The power of taxation is capable of residing in different authorities simultaneously.
• In imposing taxes for state purposes, they are not doing what Congress is empowered to do.
• Congress cannot tax for purposes within state province.
• A state regulating commerce with foreign nations or among states is exercising power granted to Congress.
• When congress is regulating commerce, the sole question rests on whether a State can regulate commerce with foreign nations and among the States.
• State law must yield to federal law.
• The framers of the Constitution declared the supremacy of itself and laws made in pursuance of it.
• An act for enrolling and licensing steamboats demonstrates that steamboats may be enrolled and licensed.
• The act of a State inhibiting a vessel with a license under the act of Congress comes in direct collision with that act.
• The powers granted to the federal government are not be contracted by construction; the original powers of the States are retained
• The Court is of the opinion that licenses to steamboats to carry on the coasting trade granted under an act of Congress give full authority to navigate US waters.
• Any state law prohibiting vessels licensed by the US from navigating state waters using steam is unconstitutional and void.