AP Success - AP U.S. Gov & Pol: SCOTUS Comparison: Constitutional Power and Interstate Commerce: United States v. Lopez (1995)

In the late 18th century, New York state gave Robert Livingston and Robert Fulton a twenty-year monopoly on using the state’s rivers to transport goods. The two men attempted to gain similar monopolies on other states’ waterways. States against this proposed monopoly argued that Congress’ commerce power made such monopolies illegal.

In 1815, Aaron Ogden went into business with Thomas Gibbons after the former had purchased a shipping license from Livingston and Fulton. The business relationship fell apart after three years, leading to Ogden filing a lawsuit against Gibbons. At the heart of the issue was whether the states had the authority to permit shipping monopolies on bodies of water that touched or flowed through other states. The lawsuit made its way to the Supreme Court and became known as Gibbons v. Ogden (1824).

In a unanimous decision, the Supreme Court ruled in favor of Gibbons, as his lawyers had argued that only Congress had the power to regulate interstate commerce. This power extended not only to the ships themselves but the goods they carried.