Under what authority did gibbons v ogden operate their ferry system?

Aaron Ogden held a Fulton-Livingston license issued under the authority of the state of New York. New York had granted Robert Fulton and Robert Livingston a contract to issue permits for steamboat travel in New York waterways. Fulton and Livingston often seized boats operating without license in their territory.

Thomas Gibbons held a license issued under the authority of Congress, pursuant to the Federal Licensing Act of 1793, specifically, "An act enrolling and licensing ships and vessels to be employed in the coasting trade and fisheries, and for regulating the same," under the authority of the Interstate Commerce Clause (Section I, Article 8, Clause 3). Gibbons either refused to purchase or was denied a Fulton-Livingston license, which prevented his company from carrying passengers between Elizabethtown, NJ, and New York City.

Ogden successfully sued Gibbons in The Court of Chancery of NY for an injunction against entering Hudson bay and landing in New York City, giving Ogden a monopoly over the steamship business between New York and New Jersey. Gibbons appealed to the Supreme Court, which nullified the New York law as unconstitutional.

Case Citation:

Gibbons v. Ogden, 22 US 1 (1824)