Commerce Regulation Quotes



While many use the invention and development of the Steamboat as an example of breakthrough technology by private enterprise, the reality was that Fulton and Livingston could not raise the private capital to develop the vessels and start operating them until the State government stepped in and granted them a monopoly for 20 years in the waters of the entire state of New York including the Hudson River and New York Harbor. This was one of the first examples of “corporate welfare” and subsidies for development of new technology. Fulton’s company used the courts to enjoin anyone else from operating a steamboat, and Fulton could charge very high rates as he had no competition thanks to New York State. Other boat operators then went to New Jersey which passed its own allowing anyone stopped by NY courts to sue Fulton & Livingston for triple damages. The lower Hudson River and New York Harbor was on the shores of BOTH states and each had an equal claim to jurisdiction. The Supreme Court settled the dispute in one of the major legal cases in American history. See {624486}


This quote is interesting because it itemizes some of the things that Jefferson clearly felt was beyond the constitutional powers of the Federal government. Yet all of these things were done by the Federal government after Jefferson passed away. The Corps of Engineers commonly builds and /or maintain rivers and canals, the military does some of its own manufacturing even today but far less than in the first half of the 20th century when much of the munitions were made in government factories. The federal government has and does maintain special farms. Some opponents of big government point to this quotation to illustrate how we have deviated from the concepts of the Founding Fathers.


The President had decided to aggressively push for railroad regulation to end the rate rebate abuses that were used to support the monopolies like Standard Oil. In vintage Roosevelt tactics, he gave his first major speech on the subject in the setting and forum that would be most opposed to it. The Union League Club of Philadelphia in included the wealthiest men in the area where were most opposed to any Federal Regulation of anything. All the major railroad executives and stock owners and traders were also members. The President wanted to persuade the opponents to change their positions, and sometimes he did. He also was driven by his concept of sports and athletics so that the “opposition” should have “fair notice” for the contest ahead.


This is the first known proposal for the formal union of all the American colonies. There had been a confederation of New England plantations in 1643, see {612159}. The purposes are remarkably similar to what developed in our original constitution and even regarding the Federal role today.