Gibbons v Ogden Decision Fair or Unfair

Gibbons v Ogden Decision Fair or Unfair

The decision in the Gibbons v. Ogden case is, in my opinion, a very just

and fair one. Many believe it to be the first anti- trust decision in U.S.

history. The economic results cannot be over-estimated, a different

decision could have resulted in completely different circumstances than with

which we are accustomed to today. The free flow of commerce, which we

seem to almost take for granted in modern economics and business, may have

never been a possibility without decisions such as this. Monopolies did not

allow for equal division of business and therefore was unjust. If all men are

created equal they should be given equal opportunities. The New York

Livingston-Fulton monopoly clearly subjected any potential competition to

harsh conditions that would make it impossible for them to keep up in their

business. Travel by steamboat was much faster than any other means in the

time of this case and to give complete control to only one partnership was

unfair. Under the constitution Congress has the right to regulate commerce.

Although the monopoly was a form of internal state trade regulation it

directly impacted on inter-state trade after a number of states passed laws

to come back at the New York monopoly. Therefore, Congress had the right

to intervene and end the monopoly.

To completely understand the impact of the Gibbons-Ogden decision

it is necessary to understand the situation surrounding it. In 1798 Robert R.

Livingston secured an exclusive twenty year grant from the New York

legislature. By the terms of this grant he could exclusively navigate by

steam the rivers and other waters of the state, provided that within two

years he should build a boat which would make four miles an hour against the

current of the Hudson River. The legislature had no faith whatsoever in the

project but the decision was still made against the many jeers. The terms

of the grant were not met and it was renewed in 1803, this time to

Livingston and his new partner, Robert Fulton. It was renewed once more in

1807 and finally that August Fulton’s steamboat made its first successful

trip from New York to Albany. The following year the Legislature, fully

aware of the practical significance of Fulton’s achievement, passed a law

stating that for each new boat navigated on New York waters by Fulton and

Livingston that they should be provided with a five year extension to their

monopoly, which may not exceed thirty years.