Territory of Alaska v. Troy

Background

Private parties attacked Section 27 of the Merchant Marine Act, which limits coastwise carriage to vessels built in and owned under U.S. law. They argued the statute gives a practical preference to ports in the Pacific Coast States over Alaska and thus violated the Constitution’s ban on favoring one State’s ports over another.

Reasoning

The Court assumed the statute did favor State ports but framed the central question as whether the Constitution’s “no preference” rule among States also covers an incorporated, organized territory like Alaska. The opinion held that the word “State” ordinarily excludes territories, so Congress may lawfully treat territories differently in commerce. The Court relied on prior decisions about constitutional limits on legislation for territories and rejected contrary statements as not controlling, and therefore found the statute consistent with the Constitution.

Real world impact

By affirming the dismissal, the Court left Section 27 in force. That preserves limits on which vessels may carry domestic coastwise cargo and confirms that Congress can use different rules for territories. The ruling affects shipping services, carriers, and commerce serving Alaska’s ports, and it leaves policy choices about territorial trade to Congress.