Cornelius Vanderbilt biography. Railroad Kings: Cornelius Vanderbilt

We are glad to welcome you, dear blog readers! Few people know who Cornelius Vanderbilt is, but in fact he deserves more attention, as he is considered the richest and most brilliant entrepreneur of the 19th century.

Childhood

Born on May 27, 1794 in New York into a middle-class family, not particularly different from the rest. The father, also Cornelius, was a very hard-working and thrifty man. He worked as a ferryman, while Phoebe's mother did household chores. Over time, they were able to save enough money to buy a farm on Staten Island, where, in principle, our hero was born.

When the boy was 11 years old, his father called him to his place, since it was difficult to cope with work alone, so he had to forget about training. The “street” took over his upbringing, where the future millionaire learned a very important lesson - you need to be able to stand up for yourself and rise up every time you fall. So, learning the science of life and honing his craft, by the age of 16, Vanderbilt began to think about his own business in order to earn big money, and not save penny by penny, like his parents.

It was decided to continue the family of boatmen (grandfather Jan Van Der Bilt was the first to take up transportation, passing on knowledge and experience to his son), only it was necessary to find money for his own transport. His mother helped by lending him a hundred dollars, setting the condition that he himself would plow and sow more than three hectares of land. Perhaps she hoped that he would not cope, since this is a lot of work for a teenager, and the ground was rocky, and it was necessary to make a lot of effort to plow it. But Korni was hard-working, like his father, and also stubborn, so the field was ready on time, and the mother had no choice but to fulfill the terms of the contract.

Business

Start

With the money he received, the future millionaire bought an old punt boat, “Bystrokhodnaya”. After carefully studying the map of New York, he decided to compete with hundreds of other boatmen, ferrying clients from Staten Island to Manhattan, and vice versa. At that time there was no exact schedules departure and arrival, there were no fixed prices, etc. Therefore, the young entrepreneur, betting on his iron will and fists, estimates the crossing on his “Bystrokhodnaya” at 18 cents.

People instantly flocked to him, who were ready to melt down standing or sitting in each other’s arms, because they saved about 82 cents each time. And Corny was not afraid to cross in a storm, like other ferrymen, skillfully controlling the punt.

By the way, he really was a master of his craft, because in his biography there is only one fact of an accident. While starting his business, he lost control and collided with an oncoming boat. Not a single ship, not a single schooner that was in his possession ever got into trouble, and they were distinguished by their quality and comfort.

By the end of the first independent working year, Cornelius not only paid off his debt to his mother, but also received an income of $ 1,000. This allowed him to hire staff and purchase more boats. To survive in the fierce competition, the main requirement for applicants was the ability to fight, so after a while the schooners of his hooligans captured the waters of New York. A little later, the hero of our publication decides to expand his business and begins selling products that he transports from Manhattan.

The decisive factor in his activities was the war in 1812, or rather the contract with the government. The agreement was that a clever entrepreneur would supply food to soldiers who were under blockade. This brought considerable income, which he invested in the purchase of two ships, and began selling whale oil, alcohol, oysters and other goods, supplying them to ships that came from afar. It was during this period that he received the nickname "Commander".

Extension

Having earned a little more than 9 thousand, he leaves the boat business, which began to generate income that did not satisfy him at all. He got a job on a steamboat with Thomas Gibbons with a modest salary of $1000 a year. This decision was justified and balanced. Our hero decided to study the shipping business in order to engage in a more serious occupation in the future than transportation on punts.

Having mastered the intricacies of shipping, he builds his own steamship, the Bellona, ​​becoming Thomas's partner. The fight against competitors is carried out using old methods - by reducing the cost of travel as much as possible, he again “conquered” all customers. Which, of course, caused a lot of indignation among other “water taxi drivers”. They contacted the police, but our genius managed to escape with every arrest attempt.

In 1813 he married Sophia Johnson, his cousin. Together they moved to New Brusquick and opened a hotel and tavern near the river. Now every traveler or sailor could relax, sleep and eat a hearty, tasty meal before the further journey. Sofia managed everything herself, and she did it very well, at least there were always a lot of clients there. There is a version that she initially refused to move, but her husband managed to “convince” her. After spending 2 months in a mental hospital, Sofia agreed to do anything just to get out of there.

The Commander himself is fighting with the Hudson River Association at this time. The reduction in transportation costs seemed to him insufficient, and he completely made travel free. The expenses were recouped due to the high prices for the products that passengers purchased during the trip. This was the height of arrogance. Considering that Korney was stubborn, cunning and fearless, the Association had no choice but to agree “in an amicable way” so that he would leave the route and not sabotage the work of other carriers.

The contract cost $100,000, plus $50,000 payable over 10 years. The commander changed the route, gradually “growing” with ships. And already in 1840 he owned about 100 steamships, which allowed him to become the largest entrepreneur in New York.

Golden fever

In 1848, California was hit by a gold rush. People flocked there in droves hoping to make money, and Vanderbilt realized this was his chance. Having studied the routes of residents of different countries who wanted to work as miners, he proposed the shortest and cheapest option. Cornelius made a deal with the Nicaraguan government that would give him the right to organize a charter flight.

Having paid $10 thousand for this, he opens the Accessory Transit company. Having invested more money in the safety of the new route (clearing the bed of the San Juan River, building a crushed stone road to make it possible to get to the port, and building docks), the enterprising genius personally took up transportation on his steamship. In a year he earned more than a million dollars. And all because by choosing his vessel, gold miners saved at least 2 days and $200, so the demand was great.

Betrayal of partners

In 1853, he decided to take a break for the first time and organized the construction of a steam yacht of the highest standard, spending almost half a million dollars. At that time it was the most luxurious yacht. The furniture was made of gilding and velvet, the halls were decorated with marble trim, and the wardroom was decorated in the style of Louis 15. Having gathered friends and family (and he, by the way, had 13 children in his marriage with Sophia, but two of them died before reaching middle age) he went to Europe. The holiday turned out to be nice, only with plebeian habits. For example, he could disrupt a performance at the London Opera House by renting the hall for the evening.

Finding himself at home after vacation, he was extremely unpleasantly surprised. The managers, Morgan and Garrison, to whom he entrusted the management of the Accessory Transit company, staged a coup and took over it. Korney showed his tough character in this case too. He wrote them a letter saying that he did not intend to sue for such an act, because it would take a long time, he would simply crush them in the near future.

And indeed, having organized another route, through Nicaragua, using old methods, winning all the clients, literally in a year he regained his brainchild, bankrupting the traitors. And competitors, having promised to close transportation in Nicaragua, paid monthly compensation in the amount of $40 thousand, eventually increasing to $56 thousand. Which was very useful, because the flow of gold miners was declining, and interest shifted to transatlantic transportation.

Leaving the shipping business

Three of his ships plied the waters of the Atlantic Ocean, delivering people from New York to France. The most powerful steamship was the Vanderbilt, which carried mostly middle-class passengers at minimal cost. Being confident in his “brainchildren”, Korney refuses to insure them, which allowed him to save a lot of money. But he didn’t manage to work in this business for particularly long, since the Civil War began in 1861, on the eve of which he managed to sell it for $3 million.

The Vanderbilt passenger liner transforms into a battleship to protect his country's waters. There are three versions according to which he gave his beloved child to the war. First, Abraham Lincoln personally asked for help. The second is that he rented it out, receiving good dividends. And the third, that he simply donated it (despite the fact that the cost of its construction was approximately $600,000).

Even in his youth, in the 30s, he tried to master and establish the railway business. An accident occurred, a boiler exploded, and a young entrepreneur with serious burns and injuries ended up in a hospital bed, spending 2 months there. This incident deprived him of the desire to engage in ground transport for a long time, but in the 60s he decided to return to this idea.

By purchasing shares in various railroad companies, he consolidated virtually all communications near New York. The entire Hudson River road, as well as the Harlem Road, came into his possession. In general, after five years he “made” $25 million and became the most powerful personality in the US transport business.

Personality and character

Remember how the hero of our publication had to leave school to help his father? So, until the end of his days he remained illiterate, not even knowing how to sign. But he was never ashamed of this, explaining that he achieved everything thanks to the focus on work, and not on study.

Interestingly, despite his millions, he lived quite modestly, not counting vacations in Europe. For example, lying on his deathbed, he refused to drink the champagne prescribed by the doctor, and do you know why? Because it's expensive. He did not want to engage in charity; he once helped only the university, which was later named after him, as well as the Church of Pilgrims.

In 1869, his wife died, but literally a year later, being a 75-year-old man, he married again to a distant relative, who was 35 years old at that time.
His biography ends on January 4, 1877. Cornelius left this world at the age of 83, leaving behind a serious scandal, as he disposed of his accumulated capital in a very strange way.

Will

The will stated that 90 million dollars out of about 100 million were received by the eldest son William in order to further develop his business. The remaining children received $100 thousand each, and the widow received $500 thousand. Although he initially planned to inherit all the capital to his youngest son George, he died at the age of 25. The middle son was addicted to alcohol and gambling, plus he suffered from epileptic seizures, so he seemed to his father completely unreliable and not worthy of money.

The rest - girls, would not be able to withstand the competition and manage such a powerful father's business. Of course, the "deprived" relatives were angry and sued William, relying on the fact that Cornelius was not in his right mind when he made the will. The case was lost, and the will of the Crocodile (as he was called when he became interested in railroads) was fulfilled.

Conclusion

And that’s all for today, dear readers! As you may have noticed, it is quite possible to become a millionaire without education, the main thing is to believe in yourself and your strengths, as well as work hard. I also recommend that you familiarize yourself with other biographies inspiring achievements, in this link one of them,.

The material was prepared by Alina Zhuravina.

If you trace the history of all known large capitals, those that are now called “old money,” then most often at the origins of the first profits there will be a person with dubious moral principles, but with enormous charisma. And this applies to any of the modern princes, lords and senators. Worth remembering national history, not even so distant as to understand: in just a hundred years, the descendants of people who made a fortune in the 90s of the last century, even if they do not have titles, will certainly become respected people on all continents. If, of course, capital increases. Sometimes pampered descendants simply squander their fortunes. This is what happened to the legacy of the first richest man America.

Everyone in the USA knows the name Cornelius Vanderbilt, his operations are included in economic textbooks, coaches and teachers of personal growth strategies are shocked by his name. But his story and the history of the family ends with his son. This is not what the billionaire dreamed of.

Van der Bilt family

Cornelius was the fourth child in the family, his full name sounds like Cornelius Vanderbilt Jr., he received his name in honor of his father. The place of birth was in May 1794. Like all Americans, the Bilts were immigrants who passionately wanted to improve their lives to an acceptable standard. No one dreamed of millions. To work well and hard to feed the family and earn money for a peaceful old age - perhaps this was the only financial motivation for the family. The surname Vanderbilt originally consisted of three components: Van der Bilt. Over time, the gaps smoothed out, and the surname acquired consistency both in pronunciation and spelling.

The father of the future tycoon earned money for a small farm by working in the port. In his understanding, sea, port life is a very heavy burden, in which there is only dirty job and small earnings. He instilled this idea in his fourth son, but the boy understood everything in his own way. In his dreams, sea life meant freedom, wealth and unlimited opportunities. Having a tough temperament since childhood, Cornelius Vanderbilt dreamed of leaving school at age 11 in order to start his own business. And he even left its walls, but did not reach the port right away; he worked hard until he was 16 years old. family farm. But even if he wanted to continue his studies, he would not have succeeded. He created his first business and scandal within the walls educational institution.

First experience of trading and blackmail

Before setting out for his first million, Cornelius Vanderbilt showed a scandalous character, enterprise and toughness in solving problems. The matter happened within the walls of an educational institution, where the young money-grubber learned reading and arithmetic.

The teachers at the local school were no different from the surrounding hard workers, except for the ability to write, read and count. The rest of the list of “virtues” was the usual, and drunkenness ranked first. Having once noticed the pangs of a hangover in one of his teachers, Cornelius decided to alleviate the suffering and suggested corn vodka of dubious origin as a treatment. Of course it was worth it certain money. The teacher could not resist and confessed to the “savior” his sin, especially since the drink he brought was cheaper than in all the surrounding saloons.

History is silent about how long this symbiosis lasted, but one day an unlucky teacher decided to escape from the tenacious clutches of his student. It was here that the true character of the business shark was revealed: Cornelius Vanderbilt said that he would tell this whole story to the school director and all the people around him, on whom the teacher’s tenure in office depended. Tom had to give up immediately. The story eventually became clear, broke out huge scandal, the teacher was expelled in disgrace, Cornelius left on his own.

He later said: “If I spent time studying, I would not have time to earn anything at all.” This attitude towards school makes him philosophically similar to all the nouveau riche of the period of American industrialization.

Business for 10 bucks

Vanderbilt Cornelius did not think long about how exactly to make money and where to get start-up capital. He asked his parents for ten dollars to buy. The amount for farmers is quite large, and his father could not decide to take such an adventurous step, especially if it concerned the port and everything connected with it. But the mother knew her son very well and chose to grant his request, but with the condition that he first work on the farm. To get start-up capital, Cornelius had to work hard on the household: carrying stones, digging up the ground, planting plants, etc. - there is always a lot of work on the land. Having fulfilled everything he promised, he received her personal savings from his mother.

The first watercraft

Without putting the matter aside and without engaging in reflection, the sixteen-year-old newly minted sailor immediately went to buy a sailboat. The purchased ship was fragile, barely staying afloat, but the captain was determined to become the main carrier in the New York port area. The competition for transporting residents from one bank to the other was enormous; this was the only opportunity to get from one part of the city to another. Many made the voyage several times a day; floating taxis fought for each passenger and for a place in the sun among themselves. Cornelius Vanderbilt was too young, and, according to experienced cab drivers, it would not be difficult to deal with him.

During the first time, his ship tried to sink every night. Finding out what was going on, Vanderbilt realized that the bottom was being pierced in the boat. The anger was great, fists and swearing were used. The crazy pressure did its job - they began to fear him. His huge height of two meters, a tinned throat and a stock of non-literary words and phrases that clearly proved his advantage in the dispute helped instill fear in his opponents.

After the first incident, the competitive struggle did not subside, but the guy received a “registration.” Many more times he would have to resolve issues in this way, but this is how the legend under the name Cornelius Vanderbilt was forged. The tycoon's biography is replete with fights, eccentricities, cruelty and the ability to achieve goals.

Strategic dumping

In a short time I realized what to play general rules It’s not profitable and you won’t be able to make quick money, Cornelius Vanderbilt created his own rules. The ship with the name “Bystrokhodny”, according to rumors, barely stayed afloat and threatened to sink every minute, but nevertheless passengers used its services. Three dollars per person - that’s how much it cost to move to the other side of New York, and that’s what everyone took. Vanderbilt reduced the fare to one dollar, and passenger traffic increased significantly. Those eager to cross the river began to fight for a place in his boat and were ready to sit on each other’s laps just to save money.

Twelve months later, Cornelius gave his mother the ten dollars he had borrowed, and replenished the family treasury with a whole thousand. The atmosphere he created among carriers was not conducive to mutual understanding; everyone had to reduce the price, and some went bankrupt. Everyone wanted to get rid of the upstart. Fighting was a constant at Vanderbilt, lexicon was replenished by maritime terms and choice swearing. Nevertheless, Cornelius Vanderbilt earned funds to expand his business.

First flotilla

Having purchased several ships, Vanderbilt selected a team to match himself: everyone swore and knew how to intimidate a competitor looking fierce, with a strong word, and if necessary, then with a fist. A small flotilla worked actively, shamelessly dumping, it would have occupied the entire market. But in 1812-1815. There was a confrontation between England and America. K. Vanderbilt, risking ships and life, continued maritime transport, only now he carried equipment and provisions for the army.

Army supply services were not free, and Cornelius set up a speculative scheme: he bought popular goods in one part of New York and sold them in another. He considered the profit from resales to be a side benefit, but the main goal was enrichment, and therefore this business was also well established. Gradually he bought up all the carriers' floating assets and almost became a monopolist. It took seven years. He became a master of coastal shipping, one of the best suppliers, earned the name Commander, saved fifteen thousand dollars, but... the era of steamships had arrived.

Captain

Cornelius Vanderbilt did not immediately appreciate the prospects of steamship ships, but having understood, he decided to act for sure. To succeed, he needed knowledge about new ships and their capabilities. As a man who does not tolerate half-hearted decisions, he sells his entire fleet and is hired as a captain on the steamship ship of Thomas Gibbons with wages one thousand dollars a year. At the same time, he married a modest young lady from a neighboring farm, Sophia Johnson.

Gibbons' steamboat, under the leadership of Captain Vanderbilt, made vigorous voyages from New York to New Jersey. Cargo for various purposes and passengers were transported. Having studied all the intricacies of steamship transportation and big business for several years, Cornelius Vanderbilt convinced Gibbons to jointly build a new ship.

New era of business

Vanderbilt invested all his funds in the new steamship and did the design himself. The new ship was named Bellona, ​​and Vanderbilt Cornelius, as the leader of the enterprise, revived his own style of doing business - he began to desperately dump. The fare on Belonna was only $1, which was four times less than all other carriers.

Competitors, who had the law on their side, sued him several times; bailiffs came for the cunning captain, but he eluded them each time. It was rumored that there are secret cabins on the ship, which only the Commander knows about, and that is why he hides from Themis with such ease. Gaining a dominant position in business, he behaved like an invader and a wolf, tearing his competitor to shreds, in fact, as befits a man named Cornelius Vanderbilt.

He also founded another business: he acquired a small hotel with a tavern on the river bank, where the respected public could live while waiting for his ship and just have a good time. His wife became the owner of the establishment. This continued until 1829. Thirty thousand dollars had already accumulated in his pocket, but he was greedy, this K. Vanderbilt, the first million shimmered with inviting prospects still far ahead. It was time to start the big game.

Refusal as a form of income

Cornelius Vanderbilt is a great entrepreneur, and this became clear during the organization of the first monopoly. Eager to start his own business without a partner, he sells his interest in New Jersey and moves to New York. The wife resisted changing her place of residence, but the head of the family convinced her in a very extravagant way: he placed his wife, who did not agree with his decision, in a mental home for two months.

Returning to New York, he founds a shipping company and does a familiar business: transporting goods and passengers, but the fare is only twelve cents.

The steamer runs between New York and Pixill, a route that already had a monopoly by the time Vanderbilt arrived. And he was forced out of the market. Then he started a competitive struggle with the Hudson River Association, using heavy artillery - he did not charge any money for the passage. But the naive passengers suffered a heavy blow from the free passage: the cost of food and drinks on the ship was inflated several times, which partially compensated Vanderbilt for the dumping games. The Hudson Rivermen's Association gave in: it was the first time a company had asked a private carrier to shut down its operations. The compensation offered was one hundred thousand dollars and five thousand dollars each year for ten years. And the Commander agreed!

First million

Vanderbilt is moving its operations and carrying passengers to Boston, Long Island and cities in Connecticut. The business is flourishing, by the age of forty Cornelius has accumulated a fortune of half a million dollars, but his thirst for money is not quenched. The family moved again, now to Long Island. Continuously dumping, the Commander survives competitors, receives compensation, and by 1846 his steamships are moored in all major cities America. It was this year that K. Vanderbilt earned his first million in the shipping business.

Panama Canal

In 1848, gold deposits were discovered in California, and another fever swept America. The easiest way to get there was through Panama; the idea of ​​digging a canal was not new, but Vanderbilt was the first to show the energy to implement the idea. Alas, there were not enough technical means at that time, and Cornelius solved the issue of reducing travel time for miners in his own way. Having reached an agreement with the Nicaraguan government, he organized charter flights, thanks to which the seekers of a quick profit were in place two days earlier than their colleagues who turned to other companies. Each year of passenger transit brought the Commander one million in net income.

The idea of ​​building the Panama Canal never left Vanderbilt. Having once again sold the entire business, Cornelius went in search of partners. This is how the Panama Accessory Transit Co. was founded.

Private life

On the eve of the sixtieth birthday of the head of the Vanderbilt family, the full complement set off on their own yacht on a trip around Europe. The ship was called "Northern Star", Cornelius Vanderbilt was personally involved in its project and design. Photos of the yacht were published with pleasure in the press of that time. The millionaire had a specific taste, and everything that related to his personal possessions came out pompous, screaming about luxury. The Commander loved to shock the public, arrogantly reminding those around him where he came from and how many classes of education he had. Newspapers of those times often interviewed him, in one of them he stated: “All my life I have been crazy about money, the invention of ever new ways to make it left me no time for education.”

No less pompous was his house on Staten Island, built taking into account all the desires of the tycoon. It was a fantastic explosive mixture of different styles, had three floors, the furnishings were the richest in cost and tasteless in design. The most provocative piece of art in the house was a statue signed “Cornelius Vanderbilt.” Photos of the mansion were often published in the media of the time.

Railway Tycoon

In 1853, the Vanderbilt family went on a trip, this was Cornelius's first full vacation. He left two of his cunning employees to manage the affairs of the Accessory Transit Co., who through fraud took possession of a controlling stake. The Commander’s anger poured out in a telegram: “Gentlemen! You dared to deceive me. I will not sue you because the judicial machine is very slow. I will destroy you. With deep respect, Cornelius Vanderbilt." As he said, so he did - the profit from the war for his property returned triple the amount. The trial lasted several years, and Cornelius Vanderbilt won. The tycoon’s statements about Themis and former employees were widely quoted in the press.

One day, while traveling by rail, the Commander realized that land transportation was safer and cheaper, and the prospects for the development of this business promised huge profits. Vanderbilt once again sells his entire business and buys the most unprofitable railroad at that time - the Harlem Railway.

Buying short lines and shares of other companies, he worked on mergers and acquisitions. By investing in development, he managed to make an extended railway route out of small branches. This is how the New York Central Railroad was formed. Acting in the usual way - by reducing transportation prices, Cornelius Vanderbilt quickly became the owner of two long and profitable railroads - the Harlem and New York. During this period, he is fiercely competitive, which only adds spice to life. During the five-year railroad epic, Vanderbilt entangled half of America with railroad tracks; the cost of tickets for his trains was always lower than that of others.

Heirs

The tycoon had 11 children, four of them were boys. Due to his upbringing, the father did not pay attention to the girls - they would not bear his surname after marriage, and the family business should be passed on to his son, who would continue it. Of the sons, the most promising, and even during his father’s lifetime a recognized financial genius, was William Vanderbilt. He got almost all of Cornelius's fortune: $90 million. The total amount of the inheritance was the largest fortune in America at that time - $102 million. The remaining 12 million were distributed among charities and other children.

No matter how his contemporaries and descendants treated him, his activities, willingly or unwillingly, served the development of the country, even if the main goal was profit, but that was Cornelius Vanderbilt. Quotes from his interviews have been published in books, and many of them have become mantras for entrepreneurs. But the decisive factor in the tycoon’s activities was his character and indefatigable ingenuity in “taking away funds from the population.”

(1794-1877)
Commodore
Boasting that he was nouveau riche, this New World nabob raised his sons as Spartans and married them to girls from the most aristocratic families in Europe.

When Cornelius Vanderbilt's overly luxurious yacht anchored off the English coast in 1852, the Daily News welcomed the arrival of the now very famous billionaire and wrote: » From now on, the definition of “nouveau riche” should be considered as a genuine aristocratic title". After reading this phrase, arrogant England could not hold back an indignant exclamation. She let go of the cup of tea, pursed her lips like an old maid, indignant at a greasy joke, then shrugged her shoulders with a condescending smile and thought about the incongruity of using these two words side by side - Aristocracy and Vanderbilt.

In the Old World, still at the height of its power, the knights of industry from young America had not yet received the right of citizenship, and it would take years and years for the various Vanderbilts, despite the thick wads of green dollars that bulged their pockets, to achieve it.

Two traditions honored by the Vanderbilts: yachtelort and the rank of Commodore.

Nouveau riche... and proud of it
It must be admitted that it is difficult to imagine a greater nouveau riche, a greater upstart, than Cornelius Vanderbilt. He was the caricature embodiment of this type, and the mixture with which he boasted of his origins only emphasized all the absurd incongruities in him, creating some completely absurd image. He belonged to those Americans who admired the ancient splendor and magnificent coats of arms of old Europe, but at the same time cultivated the mythology of the pioneers, without knowing either measure or taste. Proud of success, he ostentatiously flaunted his wealth and announced his low origins with the same arrogance with which a Spanish grandee displays his magnificent family tree. In doing so, he personified and understood the dream that propelled the adventurers and pioneers who made up his nation. In America, boasting of wealth, which in the Old World aroused hostility and envy, guaranteed him from criticism.

Vanderbilts
But even if he wanted, Cornelius could not claim noble birth. His first known ancestor was named Jan Arston and was a simple day laborer from the small village of Bilt in the vicinity of Utrecht. Desperate to find an opportunity to feed himself in his homeland, in 1650 he hired himself into the service of his compatriot Peter Wolferson, a wealthy landowner who settled in Brooklyn.

Thanks to their efforts and frugality, Jan's heirs in the next century managed to buy a small plot of land on Staten Island, whose hard work soon allowed them to become one of the most prominent families in the area. However, the prosperity did not last long. Over the years, the number of Jan Arston's descendants grew so much that by the end of the century, when their patriarch Jacob died, the Vanderbilts came to the conclusion that they would have to sell their small farm and divide the proceeds. Soon the family returned to its original position, and its members were forced to look for food on their own, including Cornelius, one of Jacob’s grandchildren, who hired a day laborer on the farm.

Religion Jacob Vanderbilt, the first in his family to make a fortune, belonged to the sect of Moravian brothers.

Cornelius I
From his ancestor Jan Arston, this Cornelius inherited courage and hard work, but he never showed any excessive ambitions. He diligently saved money, was distinguished by a serious attitude to life, very wisely married the girl Phoebe Hand, who had many merits, but was unable to achieve any extraordinary success. All he achieved was the purchase of a tiny farm in the vicinity of Stapletown, where his monotonous, labor-filled life took place. And it was on this farm that on May 27, 1794 his son was born, who, like his father, received the name Cornelius.

Cornelius II
Cornelius was a handsome, healthy boy with blue eyes and rosy cheeks, and already in childhood he had one feature that remained with him throughout his life: when he screamed, his voice drowned out the voices of all the children nearby.
Since his parents did not have the means to pay for his studies, the boy received more than an insignificant education - he grew like weeds in the field and by the age of twenty he could only read and write. Fortunately for him, an early, indefatigable ambition that knew no limits helped him escape from the miserable existence to which fate seemed to condemn him.

Windfall: War
He was only seventeen years old when war broke out between England and the United States. Fearing an attack on New York, the Americans decided to build fortifications on the islands of Staten Island and Long Island. Despite his youth, Corney instantly realized what benefits could be derived from this situation. For work you will need a large number of ships to transport workers and construction materials. He turned to his parents and asked them to lend him a hundred dollars—all their meager savings. In addition to his ambition, Corney had a commercial sense and managed to sell his idea. Having succeeded here, he hurried to the port to immediately begin to implement his plan.

Undaunted Captain
On the cheap, he bought a wrecked large Dutch two-masted barge that was leaking so much that water had to be bailed out of it all the time. Having hastily made the necessary repairs, he boldly offered his services to the harbor captain. For a year he worked day and night, not retreating from any difficulties, not fearing either risk or storm, and thanks to this he became the captain most often called upon on the coast.

The results of such diligence and fearlessness exceeded all his expectations. He not only managed to repay his parents' debt with interest within a few months, but by the end of hostilities he found himself the owner of a small fortune, expressed in three barges and a thousand dollars in cash.

King of Coasting
No matter how spectacular such success was, Vanderbilt believed that this was only the beginning. His ambitions were limitless. The success of the business he had just completed only whetted his appetite. Setting out for conquest east coast, he set himself the goal of becoming not just the first among those involved in coastal transportation, but the only one. And he resolutely set to work.

At the age of twenty, he invested all his savings in purchasing an old ship, on which he organized the transportation of oysters to Virginia. Soon he has enough money to order the construction of two magnificent ships - the Horror and the Charlotte, on which he sails along the Hudson and New York Bay. Then, already a ship owner, he becomes a simple captain with a salary of sixty dollars a month in the company of old Thomas Gibbon with the sole purpose of learning the skills of managing steam ships.

Finally, in 1826, at the age of thirty-five, Cornelius risked all the money he had and founded his own shipping company. A company that in a few years will defeat all others that operated regular flights between New York and the cities of the east coast - Boston, Elizabethtown, New Brunswick, Philadelphia... And all this in less than twenty years!

Family meeting
In 1975, the administration of Vanderbilt University came up with the idea of ​​gathering all the descendants of Cornelius to celebrate the centennial of the university. There were about eight hundred of them, and they belonged to two hundred and seventeen families.

Commodore Vanderbilt
It must be said that Vanderbilt, in order to satisfy the insatiable need for victories, did not hesitate in the choice of means: he wanted not only to get around his competitors, he had to knock them out, ruin them, destroy them. He recruited the crews for his ships from thugs and bullies, of which there are many in any port, fearless in stormy seas and guys quick to fight, who are always ready to strike fear into the sailors serving in competing companies.

Since Cornelius understood that to win he needed to intimidate his competitors, he took the nickname Commodore and carefully created a very definite image of himself. Boasting encyclopedic ignorance, swearing like a shoemaker, using with unparalleled virtuosity all the subtleties of an impeccably bad upbringing, he gave the impression of an uncouth insolent person who cannot be reasoned with by any arguments and who would not give up achieving his goal for anything in the world.
However, such a policy of intimidation was fully justified. The Commodore acquired a reputation on the coast as a ruthless opponent, acting without a twinge of conscience; Often shipowners, at the mere thought that they would have to enter into direct competition with him, preferred to give in and get out of the way of this inexorable rival.

Company North River Association In her compliance, she even went so far as to offer him monthly compensation so that he would refuse to swim in her waters.

Vanderbilt accepted the company's offer, waiting for the moment when he could swallow it...
For him - and this undoubtedly distinguished him from his opponents - it was not enough to occupy a dominant position on all the sea lines of the eastern coast. He is one of the first figures of the “Bronze Age of capitalism”, his goal was complete monopoly. To put its competitors out of business, Vanderbilt systematically lowers prices. He is reducing his profitability ratio, taking incredible risks, refusing to insure his ships, and reducing the number of crews. But his clientele is growing at a dizzying speed, and this compensates, and more than compensates, for all the sacrifices he made. The capitalist system, the mechanism of which he understood better than anyone else, operates smoothly.

Insurance
“Good ships and good captains are the best insurance,” said the Commodore. And further: “If people can make money from insurance, then I can too... It was enough to think so.”

The king of coasting conquers the oceans

Being just the king of coasting, of course, did not suit Vanderbilt. Two magnificent ships, the Cleopatra, appeared in his fleet, and most importantly, "Commodore Vanderbilt"- New Yorkers have never seen such beautiful ships.

Having settled in a “luxurious palazzo”—a nightmarish “Greco-Gothic” style structure made of black and pink Marble, erected by the sea in the vicinity of Stapletown—Cornelius dreams of new great victories. In 1848, he dreams of capturing the Pacific Ocean and is thinking about the project of a shipping canal across the Nicaraguan Isthmus, which will allow his ships to ply the waters of two oceans. The project was grandiose, simply unfeasible in that era, and Vanderbilt was forced to abandon it, limiting himself to transporting passengers between both oceans in ordinary stagecoaches.

Then he turned his gaze to the Atlantic Ocean. At that time, trade between the United States and Europe was a monopoly of two shipping companies; American Collins Line, which received large subsidies from the federal government, and the English Cunard, which could also count on the generosity of the British crown. To enter into competition with these two companies on their territory was a clear chimera. But neither such considerations nor the decisive refusal of Congress to the request for subsidies
did not discourage the Commodore at all (this was not in his character).

Having sold at once for one million three hundred and fifty thousand dollars all his shares in Accessory Transit, a company engaged in transportation between both oceans, he invested all this money in the construction of two steamships - "Vanderbilt" and "Queen of the Oceans"- the most excellent ships, which he immediately sent to conquer the Atlantic. The methods that helped him so much off the American coast turned out to be no less successful on the open ocean. When he entered the game, he offered customers prices that were half those of his competitors. The results didn’t take long: “ Cyonard"I dropped my hands, what about " Collins Line", then soon she was left with the only option - to sell her ships, on which passengers refused to sail, to the invincible Commodore, and for a ridiculous price. In 1860, at the age of sixty-six, Cornelius Vanderbilt became Emperor of the Seas.

And of course, the story about William Walker would be incomplete without talking about his enemy, and initially his companion, Cornelius Vanderbilt, a boatman who became a billionaire, mentioned in the novel “The Twelve Chairs” by Ilf and Petrov.

Vanderbilt was illiterate (and, according to some newspaper publications of the time, he could hardly sign documents), but his intelligence, resourcefulness, and penchant for analysis helped him climb to the very top of the social ladder. Cornelius was easy-going and was not afraid to part with his old business to start a new one; he had an excellent understanding of the field of knowledge that is now called marketing and promotion. But the richest man in the United States never entered the high society of New York, led a modest life and did not want to divide the huge inheritance between his children.

The richest American of the 19th century, Cornelius Vanderbilt was born into a middle-class family. The father of the future millionaire was a boatman and owned a farm. The surname Vanderbilt comes from the name of the Dutch village of De Bilt, the homeland of Cornelius's ancestors - the millionaire's great-great-great-grandfather Jan Aertson bore the surname Van der Bilt. Over time, the components of the surname merged. Already at the age of 11, Cornelius left school to help his father. Vanderbilt did not regret the lost knowledge at all: “If I studied, I wouldn’t have time for anything else”, - the tycoon repeated. At the age of 16, Cornelius opened his first independent business, borrowing $100 from his mother (provided that the young man would plow and sow an eight-acre field on his own), Vanderbilt bought a punt boat and began transporting goods and passengers. The main route was from Staten Island to Manhattan and back, the clients were Americans who, on duty, traveled daily to New York. For each trip Cornelius asked for 18 cents. Soon he almost lost his key asset when a water taxi carrying passengers collided with a small schooner. This was the first and last accident on Vanderbilt's water transport - never again were its watercraft in distress.

The boat business turned out to be so profitable that a year later, Cornelius not only repaid the debt to his mother, but also earned $1000. Vanderbilt's services were in demand because they were cheaper than his competitors, and Cornelius himself gained a reputation as an honest and hardworking boatman. He did not refuse to carry passengers even in stormy weather. Vanderbilt's side business was trading - in Staten Island, the young entrepreneur bought goods that were in demand in New York, transported them across the river and resold them. The Anglo-American War of 1812 created new opportunities for expanding the business of the future shipping magnate. Having gained authority in the then business circles of New York, Vanderbilt was able to obtain a government contract to supply goods to forts located near the city. With the money he earned, Cornelius built a medium-sized schooner and two small ships. Since then, his competitors have nicknamed him Commander. Vanderbilt traded oysters, watermelons, whale oil, and supplied ships docked in the harbor with beer, cider and provisions. By 1817, Vanderbilt had saved up $9,000 and decided... to get out of business.

The decision cannot be called accidental: the Staten Island-New York route was filled with other boaters, and Vanderbilt’s income began to decline. Cornelius became interested in the shipping business. Having sold his fleet, the Commander was hired as a captain with a salary of $1000 a year on the small steamship of Thomas Gibbons. The shipping business was new to the businessman, but Vanderbilt wanted to carefully study the intricacies of doing business at someone else's expense. Having figured out the structure of the steamship, the Commander convinced Gibbons to build a steam ship, independently developing its design. The ship was named Bellona, ​​and Cornelius became Gibbons' partner. Because of new job Vanderbilt, his family (Cornelius was married twice - the first time at 19, the second at 73) moved to New Brunswick (New Jersey). There, Vanderbilt purchased a tavern on the river and turned it into a resting place for passengers on passing steamships. The establishment was called Bellona Hall. The tavern became a favorite stopping place for travelers. Vanderbilt's first wife, Sophia Johnson, ran the tavern.

Cornelius continued to dump on Bellona, ​​asking $1 for travel - four times less than his competitors. Vanderbilt's persistent promotion of its services outraged competitors. Cornelius's main rivals were Robert Livingston and the inventor of the paddle steamer, Robert Fulton, legal monopolists in the steamship transportation market. A monopoly position in the waters of the Hudson was guaranteed to them by the New York Legislative Council. A small war broke out between competitors. Several times they tried to arrest Vanderbilt on charges of breaking the law, but he managed to slip out of the hands of the enemies. There were rumors that the Commander equipped his ship with a secret cabin to hide from his pursuers. Finally, Fulton and Livingston decided to sue their competitor. However, they miscalculated - in 1824, the US Supreme Court declared their monopoly on transport operations in the waters of the Hudson unconstitutional.

By 1829, Vanderbilt had saved $30 thousand and decided to go free again, taking up own business. The protests of his wife, who did not want to leave settled New Jersey, and Thomas Gibbons, who offered Cornelius a double salary and a 50% share in the company, led to nothing. The commander moved the entire family to New York. Cornelius's wife initially refused to move. The adamant Vanderbilt solved the problem radically by placing his wife in an insane asylum for two months!!!
Returning to New York, the entrepreneur founded a shipping company and established communication between New York and the city of Peekskill, New York. The Commander asked for only 12.5 cents for travel and gradually ousted the local steamship king Daniel Drew from the market (three decades later, Drew would take revenge on Cornelius by taking away the Erie Railroad from Vanderbilt). The businessman entered into competition with the Hudson River Association, which carried passengers from New York to the city of Albany. At first, the Commander asked $1 for a ticket (the river association took $3), later he made the passage completely free!!! The entrepreneur compensated for the losses through services, doubling the prices for food on board his ships.

The association found it expedient to pay a newly minted competitor to move its business to another location. After accepting $100,000 and agreeing to further payments of $5,000 annually for 10 years, the Commander began flying passengers to Long Island, Providence and Boston, as well as several cities in Connecticut. At the same time, Vanderbilt resumed trade between the coastal cities.
Vanderbilt's steamships were hardly comfortable; they were often luxurious. Cornelius built real “floating palaces” that amazed with their size, comfort and elegance. By the 1840s, Vanderbilt owned more than 100 ships on the Hudson River. Vanderbilt's company was one of the largest New York employers at the time.

By the age of forty, Vanderbilt had amassed half a million dollars, but was tirelessly looking for new opportunities to enrich himself. An unexpected chance to make money presented itself in 1849, with the start of the gold rush. Gold miners flocked to California. The usual route of future prospectors ran through Panama. Travelers arrived in the Latin American country by boat, rode mules across the Isthmus of Panama (the Panama Canal was built 60 years later) and took steamships to San Francisco. Vanderbilt proposed a new route. Now the gold miners who arrived in Latin America(Nicaragua), could sail along the San Juan River, then along Lake Nicaragua. Western shore of the lake from Pacific Ocean only 12 miles separate. Thus, the journey was shortened by 600 miles, and the journey to the final destination took two days less than the usual route. The total fare did not exceed $400 instead of the traditional $600. In 1851, Vanderbilt founded the Accessory Transit Company, paying the government of Nigaragua $10,000 for the right to organize a charter flight. Cornelius personally led the small steamer, checking the new route (local residents assured that the river was unnavigable). Cornelius's company cleared the San Juan River, built docks on the east and west coasts of Nicaragua and on Lake Nicaragua, and built a twenty-mile macadam road to a port on the west coast. The new business solution brought the Commander more than $1 million in a year. While developing the business, Cornelius built a fleet of eight ocean-going steamers.

In 1853, at the age of 59, Vanderbilt decided to go on vacation for the first time in his life. He built a luxury steam-powered yacht, calling it The North Star. By the way, the yacht turned out to be the second luxury item that Vanderbilt allowed himself - the first was a mansion in Staten Island. Before setting sail for the shores of Europe with his family, the Commander resigned as president of Accessory Transit, entrusting the management of the company to its top managers Charles Morgan and Cornelius Garrison. While the owner was floating on the waves, the managers issued new shares of the company and gained control of Accessory Transit. After returning, Cornelius, instead of expanding the business, had to win the company back from the new owners for about a year.

A little later, trouble came from the other side. After the change of power in Nicaragua, the country's new government took away the right to transport from Accessory Transit (under the pretext that the company violated the terms of the agreement), concluding a more profitable contract with Vanderbilt's competitors. The commander did not sue because “the law is too slow to punish the guilty,” and promised to destroy the business of his competitors (American businessmen led by William Walker). No sooner said than done. Vanderbilt launches a new steamship line along the old route through Panama. Competitors had to pay Commander $672 thousand a year for the self-destruction of the new transport line.

In the 1850s, Cornelius became involved in transatlantic shipping, establishing a link between New York and France. It competed with the Cunard and Collins lines. The first was subsidized by the British government, the second by the American. The Commander failed to receive government support, however, he began to develop a new direction. Three ships were involved in transatlantic transportation, including the steamship Vanderbilt - at that time the largest ship in the Atlantic Ocean. The length of the vessel reached 335 feet (more than 100 m), width - 46 feet, displacement - 4.5 thousand tons. The ship cost the owner a fabulous $600 thousand. In the fight against Cunard and Collins, Vanderbilt used his usual tactics - he reduced fares and luggage transportation. If the target audience of competitors were wealthy passengers - travelers and businessmen, then Vanderbilt relied on emigrants and representatives of the middle class. The greatest income for the Commander came from 2nd and 3rd class passengers, who traveled several people per cabin.
Saving on costs, the Commander still did not insure his ships, since he was confident in the serviceability of the ships and the qualifications of the crew. But the new business direction did not become profitable. At the beginning of the Civil War (1861), the commander sold the Atlantic line for $3 million. However, the businessman saved the Vanderbilt steamship, turning the passenger liner into a warship. During the war, Cornelius placed the ship at the disposal of the government (despite the fact that the millionaire claimed that he had leased the ship, the newspapers regarded his actions as a gift).

In his old age, Vanderbilt radically changed his business strategy, abandoning maritime transport and entering the railroad business. Cornelius tried his hand at the land transport business back in the 30s of the 19th century. But a railroad accident that happened in 1833 (a steam boiler exploded, and Cornelius spent two months in the hospital due to injuries) discouraged Vanderbilt’s interest in the industry for a long time. True, not forever. Having sold the ships, Cornelius began analyzing the new market. The American railroads of that time, formally assembled into a single network, in fact represented the so-called. a labyrinth - many short, disconnected roads owned by hundreds of businessmen. Unbridled competition led to frequent bankruptcies. The commander began to buy up shares and combine short railway lines near New York into a single whole. The commander acquired a controlling interest in the Harlem Railroad and took control of the Hudson River road, winning a second victory over Daniel Drew, who by that time had retrained as a trader in railroad stocks.

In 1865, Vanderbilt began merging the purchased companies that owned small lines into the New York Central Railroad. Four years later, he merged it with Harlem. Unlike most railroad magnates of that time, Cornelius not only bought shares, but also invested in expanding the road network. Finally, “sworn friends” Vanderbilt and Drew met on the Erie Railroad. However, he underestimated those in whose hands the company was - its actual owner was the same Daniel Drew, this time acting through his young partners Jim Fisk and Jay Gould. The latter, by the way, is a major figure in the history of American business. Gould made his fortune through stock speculation, constantly being at the center of numerous corruption scandals, and later founded the famous Western Union - later the largest telegraph company in the world. The old tycoon clearly did not expect that the new generation in the person of Drew’s partners would give him such a serious rebuff, acting at the same time using his own methods, Cornelius Vanderbilt. Neither the aggressive purchase of Erie shares (in order to obtain a controlling stake) nor the attacks on its trains by Vanderbilt-hired “crews” helped. In the first case, his rivals, having bribed the legislative authorities of the state of New Jersey, carried out an illegal additional issue - they threw onto the market 100 thousand shares not backed by assets, which Vanderbilt no longer had the strength to buy. And to protect trains and bridges, Gould did not skimp on purchasing decommissioned army cannons and creating a special combat flotilla. This long war, which went down in the history of American business as the “Battle of Erie,” ended in a peaceful compromise - Vanderbilt emerged from it with the loss of “only” $1.5 million, and Fisk and Gould retained control of the railroad, which was brought to the brink of bankruptcy.

Undeterred by the tycoon's failure, at the insistence of his eldest son William, Cornelius expanded the railroad network to Chicago by purchasing the Lake Shore Road and the Michigan Southern Road. Finally, by taking control of the Canadian Southern and Michigan Central roads, Vanderbilt became the owner of the largest transportation network in the United States. Despite his status as the richest man in the world, Cornelius Vanderbilt lived quite modestly. When doctors recommended that the terminally ill Cornelius drink champagne, the millionaire refused, citing its high cost. Coming from a poor family, he avoided charitable donations, unlike, for example, the hereditary banker Pierpont Morgan. “All my life I’ve been crazy about making money,” Cornelius admitted. Only Central University (renamed Vanderbilt University) and the Pilgrim Church in New York received sponsorship from the millionaire.
Vanderbilt did not want to divide his fortune equally among all the heirs (the rich man had 12 adult children). According to his will, the Commander left the bulk of his wealth to his eldest son, William. The remaining children received only $100 thousand - an amount, although quite sufficient for a luxurious lifestyle, but insignificant compared to William Vanderbilt's $90 million. To the widow, Vanderbilt left $500,000 in cash, a mansion in New York, and 2,000 shares of New York Central Road. It is not surprising that the deprived heirs began to sue their rich brother, insisting that Cornelius Vanderbilt wrote his will while insane. However, none of the trials were successful - the judges invariably confirmed the Commander's last will.

William Vanderbilt, who had earned a reputation as a business genius while his father was still alive, successfully managed the inheritance, doubling the capital accumulated by Cornelius. But constant stress undermined the health of Vanderbilt's son; William outlived his father by only eight years. After the death of his elder brother, the Commander's grandson, Cornelius Vanderbilt Jr., became the head of the railroad empire. Unfortunately, the Commander's descendants did not have the strong business acumen of their father and grandfather. This destroyed the Vanderbilt empire. Over business, the Vanderbilts preferred sports, especially yachting, art, breeding thoroughbred horses, and, in the worst case, charity. Cornelius Jr. became famous for his luxurious estate in Newport. His daughter Alice Gwen Vanderbilt (the same one with whom Ellochka the Ogress competed in the novel “The Twelve Chairs”) became a sculptor, curator and founder of the Museum of American Art in New York. Alice's niece, Gloria Vanderbilt, is a famous designer of clothing, particularly jeans. Son of the younger Cornelius Vanderbilt - famous writer, newspaper publisher and film producer. The family constantly reduced its share in the New York Railroad - grandchildren and great-grandchildren gradually lived off what Cornelius had acquired. In 1954, control of the company passed to Robert Ralph Young and his Alleghany Corporation, once also owned by the founder of the railroad empire. Vanderbilt's descendants easily parted with the assets to which the old Commander clung almost with his teeth.

Well, some facts and memories of contemporaries. The wealth of Cornelius Vanderbilt, by the standards of that time, was truly provocative, but the tycoon’s manners shocked his contemporaries even more. He openly boasted not only of his fortune, but also of his uncouthness and deep ignorance in everything that did not relate to business. “All my life I was crazy about money - the invention of ever new ways to make it left me no time for education,” he confessed in the newspapers. Constantly emphasizing his plebeian origin, the commodore did not hesitate to express himself in public; his strong words from the sailor’s vocabulary made even men in officer uniforms blush, and their companions were brought into a semi-fainting state. An example of luxury and bad taste was the three-story palace built by Vanderbilt in his native Staten Island. Its pediment was decorated with a bronze statue of the owner, seated on a throne in the pose of an ancient god. Corneulis Vanderbilt's antics caused ridicule among the then American elite, but at the same time, New York society adopted any innovation emanating from the tycoon with amazing speed.

The manners of the rich in Europe were even more condemned. No wonder, he could easily rent the largest London opera house for an evening for friends and acquaintances, canceling the planned performance and paying a penalty. At that time, the doors of the prestigious clubs of the Old World and the European world itself remained generally closed to the uncouth Yankees; their hefty packs of “greens” did not yet have a magical effect on the European elite. Not accustomed to giving in to obstacles, Vanderbilt began to systematically and energetically break down this wall, betraying the remaining unmarried daughters(in total he had eight daughters and three sons) for well-born European aristocrats. The pinnacle of this matrimonial operation was the wedding of his daughter Consuela with the ninth Duke of Marlborough ( cousin Winston Churchill). The $2 million dowry allowed the Duke to restore the family Blenheim Castle, and the doors to high London society opened for his father-in-law.

The site's observer studied the history of the American Cornelius Vanderbilt, who built a transport empire and became one of the world's first multimillionaires. Like many entrepreneurs of the 19th century, Vanderbilt started from scratch - with no connections, no money, no education.

The Early Years of Cornelius Vanderbilt

In any case, Vanderbilt, who was not supported by the US government, seemed preferable to Collins to ordinary people. Cornelius lowered prices, built huge ships, paid the crew on time and provided services to everyone, and on top of that, his ships did not sink.

Collins lost two ships in 1856. In addition, in order not to get lost against the background of his competitor, he spent a fabulous amount on his giant steamer. But Vanderbilt had connections and clear requirements for the ship, and Collins was built a steamship of poor quality. It survived several trips and was sold, with its owner losing $900,000.

After this, Vanderbilt began to look preferable even to the government. Collins lost government subsidies and went bankrupt before the end of the 1850s. Cunard was luckier, and his company existed until today. Vanderbilt sold his business in this direction in 1861 for $3 million.

It is worth telling that in the 1850s, Vanderbilt was responsible for an important culinary discovery. In 1853, he dined at the restaurant of one of the fashionable hotels Moon's Lake Lodge. Having barely touched the ordered signature dish - it was fried potatoes - the guest ordered it to be returned to the kitchen: the potatoes were cut too thick for him. There is information that Cornelius I rejected the dish three times.

The chef at the restaurant was the later famous George Crum. Out of anger or as a joke, he cut the potatoes very thin, fried them and ordered them to be served. Crum took a risk, because Vanderbilt was not famous for its kindness, but the entrepreneur and his friends liked the dish. After this, a new signature dish, “Saratoga Chips,” appeared on the restaurant’s menu. Gradually the chips became known all over the world.

Vanderbilt's Empire in the Civil War. Railway King

In 1861, the American Civil War began. Vanderbilt was then trying to sell his largest ship, the Vanderbilt, to the northerners. The government assessed the cost of the transaction and rejected the entrepreneur, and then he began renting it out to the military.

The Confederate battleship Virginia, which successfully broke the blockade, changed everything. In such a situation, Lincoln had to turn to Vanderbilt for help. The entrepreneur agreed to provide his largest ship and did not even take money from the government, apparently believing that the help could pay off in the future. The Vanderbilt was refitted and equipped with a ram.

Vanderbilt during the Civil War

In addition, the crew for the ship was carefully selected. The flagship of the Vanderbilt fleet still did not have the chance to destroy the Virginia, but he took part in the war. In particular, behind the Confederate pirate ship Alabama.

In 1864, Vanderbilt, who turned 70 that year, sold his entire fleet and earned $40 million. By all accounts, at the time, this move was perceived as the senile whim of a rich man.

Vanderbilt's next step was to enter the railroad business. He already had some properties in this area, but they were not enough for the entrepreneur. Vanderbilt's first move was to acquire the Harlem Railroad.

The history of this purchase is closely connected with the name of Vanderbilt's old enemy, Daniel Drew. He became a prominent broker and coined the term “diluted capital.” Using his capabilities, Drew engaged in stock speculation and short-sold stocks. It so happened that both he and Vanderbilt owned stock in the Harlem Railroad. The management was going to increase the length of the lines, and Vanderbilt supported them in this.

Drew had a different opinion, and using his connections in the New York City Council, he was able to block construction with the help of a bribe. His next step was to play to reduce shares. The idea turned out to be profitable, but there was an obstacle in the form of Vanderbilt, who was betting on the growth of the Harlem Railroad, did not like Drew and was losing money.

The entrepreneur’s response was to purchase additional shares up to $5 million, as well as a more generous offer to the New York City Council. Through the efforts of Vanderbilt, the price of shares increased from $90 to $285. Drew lost $1.5 million, and Vanderbilt got what it wanted and could continue to operate successfully. In 1865, the Harlem Railroad was finally in the hands of Vanderbilt. Then he added the Hudson River Railroad.

While establishing his business, Vanderbilt encountered not only old enemies, but also partners who were not entirely honest. Among them was the famous New-York Central Railroad. One of Vanderbilt's lines in Albany connected to it, making them strategic partners.

The Central Railroad used one of the Vanderbilt lines to carry passengers to New York during the winter. In the summer, the management of the Central Railroad was less attracted to this, and therefore the company's passengers traveled to New York on its own ships, bypassing the Vanderbilt line.

The entrepreneur did not like this business model, and he quickly found a way out of the difficult situation. He began disembarking passengers several miles from Albany, with the Hudson River separating them from the Central Railroad station. Clients were horrified, and Vanderbilt's former partners began negotiations. According to another version, Vanderbilt refused to accept passengers and cargo from the Central Railroad in the winter, effectively cutting it off from the regions under its control.

It all ended with Cornelius buying a controlling interest and taking control of the 400-mile line. By combining it with the rest of its roads, Vanderbilt became one of the largest players in the industry. At the same time, the entrepreneur got involved in one of the toughest business wars in his career.

Now he was interested in the Erie Railroad line, and in the battle for it, the entrepreneur again encountered Daniel Drew. Much earlier, he acquired shares of this company for $500 thousand, and in 1857 he became one of its directors and became treasurer. Drew learned from the experience of the last defeat and this time did not fight Vanderbilt one-on-one, finding strong supporters in Jay Gould and Jim Fisk.

Vanderbilt, having embarked on the takeover of Erie, did not expect confrontation, but responded in the usual way: thanks to the rapid acquisition of shares, he acquired a third of the company and a seat on the board. To provoke holders to dump their shares, Vanderbilt hired people to attack trains and cause losses to Erie. Opponents did not retreat, and Gould acquired decommissioned cannons to guard trains. So the business war began to look like a real one.

In addition to Vanderbilt's manners, society made fun of his tastes. In particular, his mansion on Staten Island, which was a tastelessly decorated palace with a bronze statue of Vanderbilt himself, caused laughter. The sculptor depicted the customer as an ancient god on a throne.

To American high society and representatives of European aristocratic families, Vanderbilt’s behavior seemed tactless, but he did not take their opinion into account and allowed
indulge in all sorts of antics - from sailor swearing in the company of ladies, to renting an entire theater in London to have fun with friends and family. Vanderbilt's manners were copied by similarly wealthy businessmen who came from poverty. At the same time, Cornelius himself did not like the nouveau riche and still strived to become part of high society.