Vanderbilt, Cornelius (1794-1877), was the most successful and powerful American businessman of his time. He made his fortune in steamship lines and railroads but also had investments in manufacturing and banking. Vanderbilt was often called “Commodore” because of his steamship interests.
Vanderbilt was born on May 27, 1794, in Port Richmond on Staten Island, New York. At the age of 16, he bought a small sailboat, which he used to ferry freight and passengers. During the War of 1812, Vanderbilt transported supplies to forts along New York Harbor. He formed a steamship company in 1829 and soon dominated shipping along the Atlantic coast and on the Hudson River. After the California gold rush began in 1849, Vanderbilt established a steamship line that carried prospectors from New York City to San Francisco. The route included an overland crossing through Nicaragua. By the mid-1850’s, Vanderbilt’s ships made regular trips to and from Europe, and he had become the leading American steamship owner.
During the 1840’s, Vanderbilt began buying shares in railroads in New York and New Jersey. In the mid-1860’s, he gained control of the Hudson River Railroad. Shortly afterward, he merged this line with the New York Central Railroad to form a network that ran from New York City to Buffalo, New York. By 1873, he owned rail lines that extended as far west as Chicago.
Vanderbilt helped build the nation’s transportation system. But he also was a fierce competitor who often cut freight rates to force competing businesses to sell out to him. Vanderbilt did not support charities. But late in life, he gave $1 million to Vanderbilt University in Nashville and $50,000 to the Church of the Strangers in New York City. At his death on Jan. 4, 1877, Vanderbilt left a fortune of over $105 million, the largest in U.S. history up to that time.
