North River Steam Boat Co. v. Livingston

1 Hopk. Ch. 149
CourtNew York Court of Chancery
DecidedMay 3, 1824
StatusPublished

This text of 1 Hopk. Ch. 149 (North River Steam Boat Co. v. Livingston) is published on Counsel Stack Legal Research, covering New York Court of Chancery primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
North River Steam Boat Co. v. Livingston, 1 Hopk. Ch. 149 (N.Y. 1824).

Opinion

The Chancellor

took time to consider the question till this day; and now gave judgment.

The exclusive right granted by this state to Robert R. Livingston and Robert Fulton, to navigate all waters within its jurisdiction, with boats moved by fire or steam, so far as that right comprehends navigation of the Hudson between the cities of New York and Troy, is now vested in the north river steam boat company.

The defendant is the possessor of a steam boat named the Olive Branch ; and the bill states, that this boat is now em- , ployed by him, in navigation and the transportation of passengers, between the cities of New York and Albany and intermediate places, in violation of the exclusive right of the complainants. Upon this bill, the complainants ask an injunction to restrain the defendant from navigating the Olive Branch between the cities of Albany and New York.

On the part of the defendant, it appears, that the Olivé Branch has been enrolled, and has a license for carrying on the coasting trade.

The courts of this state have heretofore determined, that the exclusive grant to Livingston and Fulton, is in all respects, valid. One of the decisions made by the highest court of thisj state, declaring that grant valid, has been recently reversed, \ by the supreme court of the united states : and the opinion j and decree of the supreme court, are now before this court, as j they are before the public. :

The facts constituting the case of Gibbons against Ogden, decided by the supreme court, were, that two steam boats, ha[199]*199ving licenses for the coasting trade, were employed in navigation between a port in New Jersey and a port in this state. The supreme court has decided, that these boats were authorised to pass from one state to the other, and for that purpose, to navigate the waters of this state, notwithstanding the grant of this state to Livingston and Fulton. That court has determined, that the exclusive grant of this state is void, against steam vessels having licenses for the coasting trade, when such vessels arrive in this state from another state, and when they proceed hence to another state. This was the direct question before that tribunal; this question has received a direct decision ; and I do not perceive, that any proposition more comprehensive, has been determined by the supreme court.

In the opinion given by the supreme court, the effect of a license for the coasting trade is discussed, and its efficacy, in respect to a voyage from one state to another, is determined : but the same opinion considers the act concerning the coasting trade, as an exercise of the power of the congress to regulate commerce among the states; and it admits the distinction between commerce among the states, and the internal commerce of a particular state. If a license confers a right to navigate from state to state, this proposition decided the cause between Gibbons and Ogden, and rendered the decision of any other question, unnecessary. If indeed, a license gives a right to navigate from one place to another in all cases, and as well where the voyage is wholly in the same state, as where it is partly in different states, this proposition would also have decided that cause; but this proposition has not been announced, while the right to navigate from one state to another, has been distinctly adjudged. It is not supposed, that the supreme court intended to adjudge the grant of this state null, to any extent greater than was necessary for the decision of the cause before it.

No court of justice can intend or desire, that the reasons given for its decision, should be disjoined from the facts before it, and the question which it is bound to decide. An exposition of the reasons of a court, is justly referred to the case before it 5 its arguments and all its expressions, are considered as used in application to the facts of the case, and to some ul[200]*200tímate proposition which the court plainly affirms or expressly denies. "

Navigation is subject to the control of the United States, not directly as such, but only as an instrument of commerce, or as an object of taxation.

f The decree and the opinion of the supreme court then determine, that the grant of this state to Livingston and Fulton, ;s invalid, in respect to navigation between this state and any other state, by vessels licensed for the coasting trade. This seems to me to be the result of all the views of that court; the only conclusion which it intended to deduce from all its arguments and illustrations.

The grant to Livingston and Fulton having been adjudged valid in its full extent, by the highest tribunal of this state ; and being now adjudged void, in respect to navigation between this state and any other ; I might briefly declare, that navigation within the state, by steam vessels not arriving from or proceeding to another state, remains subject to the grant of the state and former decisions establishing its validity. But in the. existing posture of this controversy, a conclusion so technical and summary, would not be sufficient: and I must examine those questions of the controversy, which, in its present state, are really new and demand a new decision.

Since the existing government of the union has been in operation, the greater part of its revenue has been levied by duties on imports ; another portion of its revenue has been raised by duties on the tonnage of vessels : and the laws of the united states, have blended revenue, commerce and navigation, very intimately with each other.

I- When revenue is raised from commerce, the measure acting Ion the subject taxed, becomes in a greater or less extent, a ¡regulation of commerce itself, as well as a measure of revenue. Such is often the intention of the legislature ; but the same legislature having also a distinct power to regulate commerce, exercise it, with views .entirely distinct from revenue. Navigation is an instrument of commerce; and as such, it be regulated by a power competent to regulate the com-in which it is employed.- Vessels are also subject to taxation j and thus, commerce may be indirectly regulated, taxing one of its instruments. The commerce in which J 0 vessels are employed, may be taxed; the vessels employed . _A _t , _ - . . , may be specifically taxed; and taxes oí both kinds, may con[201]*201cur. In any of these cases, the tax and proper regulations for its collection, have, to some extent, the effect of regulations.

Laws of the havíngaS 80* npon^evenue> c,om' merce ananaligation, are to be eonstrued with refer-object of those laws, under some orte of the to congress; and to question, ^‘intended as direct regther'of8'revenueor of commerce; or, whether they of those íequentkü°n" manner<on°y!

[201]*201Commerce may then be regulated directly, without taxa-. tion, and indirectly, by taxation; but these methods differ widely from each other. When commerce is regulated by taxation, the result is produced, not by establishing rights of commerce, but by imposing burdens. These burdens, while they produce revenue, also produce other consequences. They may also operate upon foreign commerce, upon domestic commerce, upon internal manufactures, and upon various branches of industry. Many great interests are, or may be affected, by these burdens; and the consideration of such effects, is embraced in the views of public policy, which induce the legislature to impose the tax.

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1 Hopk. Ch. 149, Counsel Stack Legal Research, https://law.counselstack.com/opinion/north-river-steam-boat-co-v-livingston-nychanct-1824.