Interstate Commerce Quotes
Van Buren was Ambassador to England at the time.
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 quotation illustrates two important points. First, that foreign and domestic trade and merchants were very much appreciated at the time and an important component of society that there were special protections for traders and merchants. Second, was the national preemption of jurisdiction and control over business and commerce that would enter and leave the city. On most matters the local authorities would handle things, but intercity and international commerce was historically continuously impaired by individual nobles and other authorities making rules affecting merchants who might come to their town or city. The Crown preempted this authority in the 13th century and the “Commerce Clause” of our Constitution was not an unusual concept and had an extensive legal and economic history.
The Elkins Act was a cornerstone of Roosevelt’s “Square Deal” program. It authorized the Interstate Commerce Commission (ICC) to impose heavy fines on railroads that offered rebates, and upon the shippers that accepted these rebates. The large corporations and monopolies would get rebates from the railroads and thus pay far less than their smaller competitors to ship their goods. It drove thousands of small companies out of business. This was a basic part of American law until the deregulation of the latter part of the 20th century. So what had been illegal, unethical, and immoral for almost a century, became legal, ethical and moral, but again discriminated against small companies.
Freedom Rides were interracial groups of Civil Rights advocates who boarded public interstate busses in Washington and rode South through some of the most segregated communities in the country. As the bus stopped at the segregated rest stops, the Black Freedom Riders would use the “white” waiting rooms, toilets, and other facilities which was against the local custom and law. Racist segregationists often brutalized and assaulted the Freedom riders whose leaders demanded Federal Protection. The Attorney General and others were trying to get the local politicians and law enforcement officials to protect the Freedom Riders, but often these were the worst of the racist segregationists. Kennedy thought if he could have a “cooling off period” for a few days, he could persuade the locals to protect the Freedom Riders from the mobs with the threat of sending Federal Marshalls or troops for the protection. So he asked Farmer and other Freedom Ride organizers to stop the Freedom Rides for a few days. This was Farmer’s famous response. The Freedom Rides continued and forced the Federal Government to respond on a timetable they did not prefer.
