Port Richmond & Bergen Point Ferry Co. v. Board of Chosen Freeholders

Background

A private ferry company incorporated in 1848 ran a ferry between Staten Island, New York, and Bergen Point, New Jersey. In July 1905 the Hudson County board passed resolutions fixing the fares for foot passengers for single and round trips, relying on a 1799 New Jersey law that authorized county boards to set ferry rates. The ferry company challenged the action, arguing that fixing fares for trips that cross state lines was an improper regulation of interstate commerce, and the New Jersey courts had upheld the county’s resolutions.

Reasoning

The Court reviewed long-standing decisions showing States commonly grant ferry franchises and regulate local ferry operations, even where ferries cross boundary waters. The justices explained that while Congress has authority over interstate commerce and may preempt state action, ordinary short ferry trips that simply move people from one shore to the other are local in character. Because these ferries are generally limited, unrelated to continuous interstate transportation, and have a history of local regulation, a county may set reasonable charges so long as those charges do not directly burden interstate commerce or conflict with federal law.

Real world impact

The Court affirmed the judgment upholding the county’s fare resolutions. The decision means county or state authorities can set reasonable ferry fares for services originating on their shore to a neighboring State, subject to the limit that discriminatory or burdensome exactions are forbidden and federal regulation would control if adopted. The Court did not decide whether the State could force the company to issue round-trip tickets from its office in New Jersey, so that narrower question remains open.