who was VANDERBILT?
Cornelius Vanderbilt, best known for his role in building the American Railroad Systems, was born on May 27th, 1794, was born in Staten Island, New York, to Cornelius Vanderbilt and Phebe Hand. His father worked as a farmer but also had a ferry business on the side to help pay the family expenses. Already working on a ferry with his father, Vanderbilt quit school at age 11, and at age 16, he started his own ferry business and carried cargo around the New York harbor. While doing this worked, he acquired a rather impressive fleet of ships and also learned boat designs.
On December 19th, 1813, Vanderbilt married his first cousin, Sophia Johnson, and moved with her to a boarding house in Manhattan. In 1817, Thomas Gibbons asked Vanderbilt to join him in his ferry business and become the captain of his steamboat that took cargo from New York to New Jersey. Vanderbilt took the job, but also kept his own business running. While captain, Vanderbilt learned how to operate a large business, and he was interested by the steamboat business, so in the late 1820s, he went into business for himself.
On December 19th, 1813, Vanderbilt married his first cousin, Sophia Johnson, and moved with her to a boarding house in Manhattan. In 1817, Thomas Gibbons asked Vanderbilt to join him in his ferry business and become the captain of his steamboat that took cargo from New York to New Jersey. Vanderbilt took the job, but also kept his own business running. While captain, Vanderbilt learned how to operate a large business, and he was interested by the steamboat business, so in the late 1820s, he went into business for himself.
his start as a businessman
One characteristic of Cornelius Vanderbilt that was good for his business but bad for his reputation was he was extremely competitive, and worked to crush anyone who got in his way or challenged him. This aggressive attitude cause him to make several enemies during his life, and in some cases, Vanderbilt's competitors paid him not to compete with them. With the start of the California Gold Rush, Vanderbilt made a large profit transporting prospectors from New York to San Francisco, with a yearly profit of more than $1 million a year, almost $26 million today.
A great example of Vanderbilt's ruthless attitude toward business was when in 1852, a dispute with Joseph White from the Accessory Transit Company, led Vanderbilt to forcing the company to buy his ships to a highly inflated price. While Vanderbilt was in Europe with his family, White convinced Vanderbilt's business ally Charles Morgan to betray him and deny hi money that the Accessory Transit Company owed him. When Vanderbilt got back to the US and did not receive his money, he retaliated with a rival line to California, which cut prices in half. After getting his money, Vanderbilt turned his attention to transatlantic steamship lines, completely destroying his rival Edward Collin's line. In November of 1855, Vanderbilt turned back to Accessory Transit, and began buying up much of the company, which he eventually lost in a long battle with William Walker, who controlled Nicaragua at the time, Edmund Randolph, a close friend of Walker, and Cornelius Garrison, the Accessory Transit's San Francisco agent. As a result, Vanderbilt started a line by way of Panama, and built a monopoly of the Californian steamboat business.
When people think of Cornelius Vanderbilt, they usually don't think of the Civil War, but Vanderbilt had an important influence on the Union's Navy. At the start of the war, Vanderbilt attempted to donate his largest and fastest steamship, the Vanderbilt, to the Union Navy. Secretary of the Navy Gibson Welles refused the offer, however, believing the ship to expensive an investment in a war that he expected would be a short war. Later, however, when the Confederate ship Virginia ( also called the Merrimack by the North) wrought havoc wit the Union blockading squadron at Hampton Roads, Virginia, both Secretary of War Edwin Stanton and President Abraham Lincoln turned to Vanderbilt for help. This time, Vanderbilt successfully donated his ship, which helped to defeat the Virginia and hunt down the Alabama. Later, however, Vanderbilt suffered a severe personal loss when his favorite son and heir to his fortune, George Washington Vanderbilt, a graduate of the United States Military Academy, fell ill and died before ever seeing combat.
A great example of Vanderbilt's ruthless attitude toward business was when in 1852, a dispute with Joseph White from the Accessory Transit Company, led Vanderbilt to forcing the company to buy his ships to a highly inflated price. While Vanderbilt was in Europe with his family, White convinced Vanderbilt's business ally Charles Morgan to betray him and deny hi money that the Accessory Transit Company owed him. When Vanderbilt got back to the US and did not receive his money, he retaliated with a rival line to California, which cut prices in half. After getting his money, Vanderbilt turned his attention to transatlantic steamship lines, completely destroying his rival Edward Collin's line. In November of 1855, Vanderbilt turned back to Accessory Transit, and began buying up much of the company, which he eventually lost in a long battle with William Walker, who controlled Nicaragua at the time, Edmund Randolph, a close friend of Walker, and Cornelius Garrison, the Accessory Transit's San Francisco agent. As a result, Vanderbilt started a line by way of Panama, and built a monopoly of the Californian steamboat business.
When people think of Cornelius Vanderbilt, they usually don't think of the Civil War, but Vanderbilt had an important influence on the Union's Navy. At the start of the war, Vanderbilt attempted to donate his largest and fastest steamship, the Vanderbilt, to the Union Navy. Secretary of the Navy Gibson Welles refused the offer, however, believing the ship to expensive an investment in a war that he expected would be a short war. Later, however, when the Confederate ship Virginia ( also called the Merrimack by the North) wrought havoc wit the Union blockading squadron at Hampton Roads, Virginia, both Secretary of War Edwin Stanton and President Abraham Lincoln turned to Vanderbilt for help. This time, Vanderbilt successfully donated his ship, which helped to defeat the Virginia and hunt down the Alabama. Later, however, Vanderbilt suffered a severe personal loss when his favorite son and heir to his fortune, George Washington Vanderbilt, a graduate of the United States Military Academy, fell ill and died before ever seeing combat.
vanderbilt builds his railroad empire
In the 1860s, Vanderbilt became aware of a newly thriving industrial business: the railroad. He served on the board of directors for 4 different railroads, including the Erie Railway, the Central Railroad of New Jersey, the Hartford and New Haven, and the New York and Harlem. It wasn't until 1863 when Vanderbilt completely entered the railroad business when he took control of the New York and Harlem line. This line was generally though of as worthless to most other railroad tycoons, but Vanderbilt wanted to prove that he could take a seemingly worthless business investment and make it into something big. Vanderbilt saw the lines on valuable asset, which was that it was the only line that ran through the center of Manhattan and connected with lines in New York, which then connected the east and west lines. T.J. Styles, author of "The First Tycoon: The Epic Life of Cornelius Vanderbilt" said of Vanderbilt's 'acquisition of these railway lines and his establishment of an inter-regional railroad system' that "This was a major transformation of the railroad network, which previously had been fragmented into numerous short railroads, each with its own procedures, timetables, and rolling stock. The creation of a coherent system spanning several states lowered costs, increased efficiency, and sped up travel and shipment times."
Vanderbilt brought his son, William, into the business as vice-president of the Harlem line, but after having a mental breakdown, William was sent to a farm in Staten Island. William later proved to his father that he was a skilled businessman, and Vanderbilt stationed his son as the head of the Staten Island Railway, and later the operations manager of his entire railway empire. In 1864, Vanderbilt sold all his steamboats to focus on building up his railroad business.
Throughout Vanderbilt's control of the Harlem line, he was faced with many battles with his rival railroad tycoons, battles that ultimately ended in Vanderbilt coming out on top. He bought control of the Hudson River Railroad in 1864, the New York Central Railroad in 1867, and the Lake Shore and Michigan Southern Railway in 1869, and in 1870, he consolidated the New York Central and Hudson River liens to create the New York Central and Hudson River Railroad, one of the first giant corporations in American history. Also, perhaps one of Vanderbilt's most notable achievement, was his influence in the building of the Grand Central Depot, which opened in 1871 and served as his lines' terminus in New York until it was torn down and replaced by the present-day Grande Central Terminal in 1913. A statue of Vanderbilt is at the modern Grand Central Terminal to this day.
Vanderbilt brought his son, William, into the business as vice-president of the Harlem line, but after having a mental breakdown, William was sent to a farm in Staten Island. William later proved to his father that he was a skilled businessman, and Vanderbilt stationed his son as the head of the Staten Island Railway, and later the operations manager of his entire railway empire. In 1864, Vanderbilt sold all his steamboats to focus on building up his railroad business.
Throughout Vanderbilt's control of the Harlem line, he was faced with many battles with his rival railroad tycoons, battles that ultimately ended in Vanderbilt coming out on top. He bought control of the Hudson River Railroad in 1864, the New York Central Railroad in 1867, and the Lake Shore and Michigan Southern Railway in 1869, and in 1870, he consolidated the New York Central and Hudson River liens to create the New York Central and Hudson River Railroad, one of the first giant corporations in American history. Also, perhaps one of Vanderbilt's most notable achievement, was his influence in the building of the Grand Central Depot, which opened in 1871 and served as his lines' terminus in New York until it was torn down and replaced by the present-day Grande Central Terminal in 1913. A statue of Vanderbilt is at the modern Grand Central Terminal to this day.
As stated before, Vanderbilt was ruthless when it came to battling his competitors over business. A great example of Vanderbilt's attitude toward his enemies was what has come to be called the Erie Wars. In 1868, Vanderbilt fell into a dispute with the treasurer of Erie Railway, Daniel Drew. In retaliation, Vanderbilt attempted to corner Erie stock, getting himself two new enemies, Jay Gould and James Fisk, Jr., who had just joined Drew on the Erie board. Drew, Gould, and Fisk prevented Vanderbilt from cornering the Erie when they defied state law and issued a "water stock", which restricted the number of shares a company could issue. Gould bribed the legislature to legalize the new stock, and Vanderbilt used the lawsuit to get his losses back. Though Gould never did get the better of Vanderbilt, the two became public enemies, and Gould often embarrassed Vanderbilt, who would publicly lash out in revenge. Ironically, Vanderbilt befriended Daniel Dew and James Fisk after the incident.
The final years
In 1868, Vanderbilt's wife, Sophia died, and a year later he married another cousin, Frank Armstrong Crawford, who was 43 years younger than he. Unlike the Industrial Titans that preceded him, such as Carnegie and Rockefeller, Vanderbilt never gave substantial donations to charities. His only major donation was the $1 million he gave to endow what would later become Vanderbilt University.
On January 4th, 1877, Vanderbilt died at the ripe age of 82, with a fortune valued at $100 million. In his will, he left 95% of his fortune to his son William and William's four sons, claiming William was the only heir capable of maintaining the Vanderbilt Empire. Vanderbilt's empire would make him the third most wealth person in American history, behind first-place John Rockefeller and second-place Andrew Carnegie.
On January 4th, 1877, Vanderbilt died at the ripe age of 82, with a fortune valued at $100 million. In his will, he left 95% of his fortune to his son William and William's four sons, claiming William was the only heir capable of maintaining the Vanderbilt Empire. Vanderbilt's empire would make him the third most wealth person in American history, behind first-place John Rockefeller and second-place Andrew Carnegie.