The Jones Act, officially called the Merchant Marine Act of 1920, is a United States federal law that provides for the promotion and maintenance of the American merchant marine. Among other things, it regulates maritime commerce in U.S. waters and between U.S. ports by controlling coastwise trade within the United States and determining which ships may lawfully engage in trade and the rules under which they may operate. Its purpose was to ensure a vibrant United States maritime industry. It also formalized the rights of seamen, allowing injured sailors to make claims and collect from their employers for the negligence of the ship owner, the captains, or fellow crew members. These are rights not afforded by common international maritime law.

The Alaska Steamship Company was formed in 1894. Its original purpose was to ship passengers and fishing products, but the company also shipped mining equipment, dogs sleds, and cattle during the Klondike Gold Rush of 1897. The company benefitted greatly from the Jones Art. Since the Jones Act required ships connecting between two U.S. ports to fly the U.S. flag, it forced two Canadian shipping companies out of the Alaska market, which allowed the Alaska Steamship Company to enjoy a near monopoly of freight and passenger service to Alaska. The company discontinued passenger service in 1954 and shut down in January 1971.