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The US Supreme Court ruled that Congress had the sole power to issue the steamboat licenses under the Interstate Commerce Clause (Article I, Section 8) because the dispute involved business (travel and shipping) between two states.
Gibbons, the guy from New Jersey who bought the federal license, won. The New York state law was overturned.
Case Citation:
Gibbons v. Ogden, 22 US 1 (1824)
To read more about this case, see Related Questions, below.
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