Cornelius Vanderbilt

     Born May 27, 1794 in Staten Island, New York.

Facts About Cornelius

-He was captain of a steamboat and later during the California Gold Rush took people from the east coast to the west coast and back east again.

-Later, he sold all his ships and started concentrating on railroads.

-He bought the Hudson River Railroad, New York Central Railroad, Lakeshore and Michigan Southern Railroad. 

-He directed construction on the Grand Central Depot on 42nd Street in Manhattan(Started in 1869, finished in 1871)

-Died on January 4,1877.

-2nd Wealthiest man in American History(John D. Rockefeller's the wealthiest)

Steamboat period

• In 1807 Robert Fulton piloted his steamboat Clermont up the Hudson river from New York to Albany against the current at the blazing speed of 4 miles per hour. Fulton – a classic example of a political entrepreneur -- and Robert R. Livingston were subsequently granted a monopoly on all steamboat traffic in New York for 30 years.
• In 1817 Vanderbilt’s Staten Island – NYC was invaded by steamboats and his income began to fall. Vanderbilt responded by selling his sailing vessels and went to work for Thomas Gibbons who owned a small steamboat. Once he learned how to operate the steamboat, he persuaded Gibbons to build a steamboat that he himself designed -- the Bellona. Vanderbilt began ferrying passengers from New Jersey to Manhattan in violation of the monopoly. He charged $1 – which was below cost -- rather than the monopoly price of $4, but made up his losses by raising the price of food and drink in the steamboat’s bar. At one point, he went 60 straight days evading New York City police trying to arrest him for violating the monopoly.

By the mid 1840s Commodore Vanderbilt operated a fleet over 100 steamboats, employed more men than any other business in the country, and was worth several million dollars.

Railroad period

From 1862 – 1864 Vanderbilt sold or leased most of his vessels to the Union government at a good profit. Vanderbilt’s fortune rose to around $40,000,000 by 1863.

Vanderbilt and his allies took control of the board of directors of the Hudson in 1864 and Vanderbilt became President of the railroad in 1865.