Gibbons v. Ogden (1824)
A steamboat company was given monopoly rights to passenger transport along the Hudson River in 1824. However, an act of congress gave an opposing entrepreneur the same right. The first company won in New York courts, at which point the case was appealed to the Supreme court. Upon hearing the case, the court ruled that the original monopoly was void, because carrying passengers from New Jersey to New York fell into the category of interstate commerce, which Congress had the ultimate power to regulate. Therefore, the congressional license took precedence over that of New York, and the power of the federal government was further reinforced.
A steamboat company was given monopoly rights to passenger transport along the Hudson River in 1824. However, an act of congress gave an opposing entrepreneur the same right. The first company won in New York courts, at which point the case was appealed to the Supreme court. Upon hearing the case, the court ruled that the original monopoly was void, because carrying passengers from New Jersey to New York fell into the category of interstate commerce, which Congress had the ultimate power to regulate. Therefore, the congressional license took precedence over that of New York, and the power of the federal government was further reinforced.