mar 2, 1824 - Gibbons v. Ogden

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A New York State law gave individuals the right to operate steamboats on waters within the state jurisdiction. Similar laws were duplicated elsewhere which led to some problems occurring with out of state boats to pay fees to travel. Thomas Gibbons, a steamboat owner who did business between New York and New Jersey under a federal coastal license, challenged Aaron Ogden, who was granted a monopolistic license under New York. Since this is a matter of interstate commerce, Chief Justice Marshall decided that regulation of navigation by steamboat operators and others for purposes of conducting interstate commerce was a power reserved to and exercised by Congress. Since this case decided that no one state could manage interstate commerce, it was an increase in federal power of the government. Congress had the power under the Constitution to manage interstate commerce, not the states.

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