Facts: New York’s legislature gave two men, Robert Livingston and Robert Fulton, a monopoly on the operation of steamboats on all waters within the jurisdiction of the state. Livingston and Fulton then granted Aaron Ogden the exclusive right to operate a ferry between New York City and various ports along New Jersey’s coast. Ogden requested an injunction from the courts of New York when Thomas Gibbons ran a competing ferry on those waterways. Ogden claimed that Gibbon’s operation of vessels in those waters was violating the monopoly that the New York legislature had indirectly given him. Gibbons argued that his vessels were licensed by a 1793 congressional act that authorized vessels “employed in the coasted trade and fishers.” When the New York courts upheld Ogden’s claims, Gibbons appealed to the Supreme Court.
Decision: 9-0 Gibbon wins. Chief Justice John Marshall delivered the opinion of the Court.
Doctrine: Congress’ power to regulate Commerce “among the several states” is to create rules for the “commercial intercourse” between the states, including that which occurs within the borders of several states. When a state law interferes with Congress’ power to regulate Commerce, it is unconstitutional.
Reasoning: The Court ruled that although the Constitution “contains an enumeration of powers expressly granted by the people to their government,” there is not “one sentence in the Constitution which gives countenance” to strictly limiting the powers of government based on the explicit words of the text. “That narrow construction,” the Court argued, would “cripple the government and render it unequal to the objects for which it is declared to be instituted.”
The Constitution grants Congress the power “to regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes.” Congress’ power to regulate Commerce “is complete in itself, may be exercised to its utmost extent, and acknowledges no limitations, other than are prescribed in the Constitution.” In order “to ascertain the extent of the power, it becomes necessary to settle the meaning of the words,” the Court wrote.
Defining commerce to mean solely navigation, wrote the Court, would be to “restrict a general term, applicable to many objects, to one of its significations.” On the contrary, commerce is “the commercial intercourse between nations, and parts of nations, in all its branches, and is regulated by prescribing rules for carrying on that intercourse.” In a way, commerce is the trading of commodities, not just traffic.
For years, it had been widely held that the text of the Constitution includes “every species of commercial intercourse between the United and foreign nations.” Therefore, the Court argued that it is reasonable to imply that Congress also has the power to regulate all commercial intercourse among the states, since the Constitution grants Congress both the power to regulate commerce with foreign nations and among the states.
In addition, “commerce among the states cannot stop at the external boundary line of each state, but may be introduced into the interior” because, according to the Court, the word “among” in the Constitution equates to “intermingled with.” “If a foreign voyage may commence or terminate at a port within a state,” the Court wrote, then the Congress can regulate commerce “within a state.” Congress’ power to regulate Commerce may “pass the jurisdictional line of New York, and act upon the very waters to which the prohibition now under consideration applies,” the Court argued. However, although Congress’ power to regulate commerce can extend into the states, it does not apply to actions of commerce “which are completely within a state.” The Constitution’s use of the word ‘among’ “may very properly be restricted to that commerce which concerns more states than one,” wrote the Court.
“The sole question is, can a state regulate commerce with foreign nations and among the states, while Congress is regulating it?” Although debates about which powers the states possess and which the federal government possesses “must arise … in our complex system,” this does not mean that those laws must “interfere.” Some argue, wrote the Court, that although Congress has the power to regulate Commerce among the states, the states, themselves, may severally exercise the same power within their respective jurisdictions,” for this power is an “inseparable attribute of sovereignty.” However, “the act of a state inhibiting” the Congress from using any licensed ships within its territory is “in direct collision with that act,” wrote the Court. If the Constitution gives Congress this power, a state may not interfere with it. Limiting Congress’ power to regulate Commerce among the states by preventing it from using vessels in the waterways within the jurisdiction of New York is to “explain away the Constitution of our country and leave it a magnificent structure indeed, to look at, but totally unfit for use.”
Therefore, the Court ruled in Gibbons’ favor.