Thomas Gibbons (left) and Cornelius Vanderbilt (right)
James P. Allaire was known as an innovator and an exceptional businessman which ultimately led to his success. And yet, Allaire had much more that contributed to his success. Unknown to most, J.P Allaire had ties to a landmark Supreme Court case that dramatically shifted trade policies in the United States.
James P. Allaire
In 1824 The Supreme Court was called on a case that related to previous New Jersey Governor Arron Ogden, and Thomas Gibbons famously being remembered as Gibbons v. Ogden. As partners, Gibbons operated steamboats between New Jersey and New York on a specific route in which the rights were sold to Mr. Ogden. Robert R. Livingston and Robert Fulton, whom Allaire had previously worked for, had established a monopoly by purchasing the rights from the state of New York. Although Ogden and Gibbons initially wanted to break the monopoly, Ogden gave in and settled on paying for the rights. Gibbons then began navigating other vessels on Ogden’s route in which Ogden had rightfully purchased from Livingston-Fulton, ultimately infuriating Ogden.This legal battle went to court where Thomas Gibbons had contacted Cornelius Vanderbilt and James P. Allaire in order to devise a plan.
Gibbons was certain the courts would rule in his favor and Allaire agreed, giving optimism and energy to his side. This plan would consist of Allaire selling and building vessels such as the Stoudinger and the Thistle while Vanderbilt would sail these between New York and New Jersey, ignoring the policies and disrupting the monopoly. The Supreme Court would conclude that States do not have the power to regulate interstate trade, voiding New York’s law granted to Livingston-Fulton essentially ending the monopoly. In short, Allaire had supported the fall of the steam-monopoly which gained him notoriety and new investment opportunities. Allaire proves to be a distinguished figure in history once more.