Background
In 1811, Robert Fulton and Robert R. Livingston were the first to enter the potentially lucrative field of steamboat commerce via the vast network of rivers west of the Alleghenies. To this end, they formed a stock company in Pittsburgh and another in New Orleans for the purpose of transporting passengers and freight between the two cities. During this age, steamboat builders were granted a federal patent which provided protection from being copied and the freedom to navigate any of the country's waterways. Fulton had a federal patent for his steamboat design but, on the western rivers, he and Livingston wanted to increase their protection from competition. They petitioned the states bordering the western rivers for a grant of an exclusive privilege to ply their waters by steamboat. Their requests were turned down by every state except Louisiana which granted the exclusive privilege in 1814. Another tactic Livingston and Fulton employed to protect their interests was to employ the fear of litigation. They used local newspapers to make a public proclimation that they would bring suit against anyone who attempted to compete with their steamboat companies.
Read more about this topic: Monongahela And Ohio Steam Boat Company
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