Cornelius Vanderbilt

Early Life

Cornelius Vanderbilt was an American notable shipping and railroad tycoon who built his wealth by himself thereby becoming the wealthiest American man in the 19th century and also the richest person in the world by the time of his death.

The business magnate was born in Staten Island, New York, on May 27, 1794, to Cornelius vanDerbilt and Phebe Hand.

As a growing child, Vanderbilt started learning the ropes of business by deciding to quit his schooling and join his father’s ferry in New york Harbor.

By the time he was 16, Vanderbilt took the bold take to start his ferry service. Some sources said the young Vanderbilt borrowed $100 from his mother to purchase a periauger (a shallow draft, two-masted sailing vessel), which he christened the Swiftsure, while others said the periauger belonged to his father and he only received half of the profit.

Career

Already gaining experience in the field of ferry services, Vanderbilt began his career as a ferry operator in New York Harbor transporting passengers and goods between Manhattan and Staten Island.

Vanderbilt was so eager and agile in the ferrying business that other capitan couldn’t resist the urge to nickname him “Commodore” for his naval skills.

Gradually but steadily, Vanderbilt expanded his business to include other routes and this enabled him to compete with well-established steamboat companies.
Even though Vanderbilt had his business running, he accepted to work under Thomas Gibson, a ferry entrepreneur, as his business manager in 1817. This opportunity granted him the privilege to learn the steamship industry.

By 1820, Vanderbilt started his own steamboat services and he aggressively became a dominant force in the industry. He even attracted rivals who couldn’t compete with him in the business.

But in the 1850s, Vanderbilt business focus shifted towards railroad transport and within a period of time he gained control of several major railroads including the New York Central, the Hudson River, the Michigan Central, and the Lake Shore and Michigan Southern. He merged them into a single integrated network that spanned from New York to Chicago. He also built the Grand Central Depot in Manhattan which later became the Grand Central Terminal.

Vanderbilt was a ruthless businessman who cut fares to drive out competitors, bribed politicians and judges, and broke contracts. However, he was a philanthropist who donated millions of dollars to various causes. He also founded Vanderbilt University in Nashville, Tennessee in 1873.

Personal Life

Vanderbilt married his first cousin, Sophia Johnson in 1813. They had 13 children. After Sophia’s death in 1868, Vanderbilt married Frank Armstrong Crawford in 1969.

Vanderbilt passed away in 1877 at the age of 82.