It is not alone Fitch's development of the devices of the endless chain, paddle wheel, and screw propeller and of his puzzling earth-and-water creature that gives luster to his name. His prophetic insight into the future national importance of the steamboat and his conception, as an inventor, of his moral obligations to the people at large were as original and striking in the science of that age as were his models.
The early years of the national life of the United States were the golden age of monopoly. Every colony, as a matter of course, had granted to certain men special privileges, and, as has already been pointed out, the questions of monopolies and combinations in restraint of trade had arisen even so early as the beginning of the eighteenth century. Interwoven inextricably with these problems was the whole problem of colonial rivalry, which in its later form developed into an insistence on state rights. Every improvement in the means of transportation, every development of natural resources, every new invention was inevitably considered from the standpoint of sectional interests and with a view to its monopolistic possibilities. This was particularly true in the case of the steamboat, because of its limitation to rivers and bays which could be specifically enumerated and defined. For instance, Washington in 1784 attests the fact that Rumsey operated his mechanical boat at Bath in secret "until he saw the effect of an application he was about to make to the Assembly of this State, for a reward." The application was successful, and Rumsey was awarded a monopoly in Virginia waters for ten years.
Fitch, on the other hand, when he applied to Congress in 1785, desired merely to obtain official encouragement and intended to allow his invention to be used by all comers. Meeting only with rebuff, he realized that his only hope of organizing a company that could provide working capital lay in securing monopolistic privileges. In 1786 he accordingly applied to the individual States and secured the sole right to operate steamboats on the waterways of New Jersey, Delaware, New York, Pennsylvania, and Virginia. How different would have been the story of the steamboat if Congress had accepted Fitch at his word and created a precedent against monopolistic rights on American rivers!