For seven years he was harassed and hampered by the hostility of the State of New York, which had granted to Fulton and Livingston the sole right to navigate New York waters by steam. Thomas Gibbons believed this law to be unconstitutional, and ran his boats in defiance of it. The authorities of the State resented his disregard of their monopoly, and a long and vexatious warfare sprang up between them, which was ended only in 1824, by the decision of the Supreme Court of the United States in favor of Mr. Gibbons.
As a means of crippling Gibbons, the New York authorities at one time determined to arrest Vanderbilt and his crew; but the wary captain was too cunning for them. He would land his crew in Jersey City, and take charge of the engine himself, while a lady managed the helm. In this way he approached the wharf at New York, landed his passengers, and took on more. As soon as he had made his boat fast, he concealed himself in the hold until the moment of his departure. As soon as he appeared on deck, the Sheriff's officer (who was changed every day to avoid recognition) would approach him with a warrant for his arrest. His reply was an order to let go the line. The officer, unwilling to be carried off to New Jersey, where he was threatened with imprisonment in the penitentiary for interfering with the steamer, would at once jump ashore, or beg to be landed. This was kept up for two months, but the captain successfully baffled his enemies during the whole of that period. The opponents of Mr. Gibbons offered a larger and better boat than the one he commanded if he would enter their service, but he firmly declined all their offers, avowing his determination to remain with Mr. Gibbons until the difficulty was settled.
After the decision of the Supreme Court placed Mr. Gibbons in the full enjoyment of his rights, Captain Vanderbilt was allowed to manage the line in his own way, and conducted it with so much skill and vigor that it paid its owner an annual profit of forty thousand dollars. Mr. Gibbons offered to increase his salary to five thousand dollars, but he refused to accept the offer.