Korneliy Vanderbilt
USA- Biography of Cornelius Vanderbilt
- Expansion of his Shipping Business
- Competition and Charitable Acts
- Expansion into Railroad Business
- Legacy and Death
Biography of Cornelius Vanderbilt
Cornelius Vanderbilt, an American shipping and railroad magnate, was born in 1794 in New York, USA. He came from a modest background, with his father working as a ferry operator. At the age of 11, Cornelius dropped out of school to help his father on the ferry. He believed that he wouldn't have had time for anything else if he continued his education. At the age of 16, he opened his first business, buying a flat-bottomed boat and engaging in water transportation, just like his father. He borrowed $100 from his mother for the boat, with the intention of becoming a farmer. However, within a year, he not only repaid his mother but also saved his first $1,000.
Expansion of his Shipping Business
Over the years, Vanderbilt expanded his fleet and capitalized on the war with England. He obtained the government's rights for water transportation between New York and the fortified areas surrounding it. However, he faced a new challenge when steamships threatened to outcompete his sail fleet. He quickly sold his business and became a captain for Thomas Gibbons' steamship company. Vanderbilt eventually became a full partner of Gibbons and in 1829, he started his own steamship company. By the age of forty, he had accumulated his first half a million dollars and continued to seek new opportunities for wealth.
Competition and Charitable Acts
During his career, Vanderbilt faced fierce competition from Daniel Drew, a ship owner and stock market player. He also gained a reputation for his immense wealth and extravagant behavior, often showing off his humble origins. Despite this, he engaged in acts of charity, such as renting a European theater for his friends and compensating them for a canceled performance. Vanderbilt married Sophia Johnson in 1813, and they had twelve children together, including eight daughters and three sons.
Expansion into Railroad Business
In 1848, the discovery of gold in California prompted the need for a canal on the Panama route. Vanderbilt seized the opportunity and became the first to undertake the construction of the canal. His company, Accessori Transit Co., gained full control of the Panama route. In 1851, when the passenger flow surged on the new route, Vanderbilt embarked on his first vacation, traveling to Europe on his luxurious steam yacht, "The North Star." Upon his return, he faced a scandal and a division of the company with his partners. Nevertheless, Vanderbilt successfully defeated his adversaries and received a substantial compensation.
Legacy and Death
After selling his fleet, which was the largest private fleet in the world at the time, Vanderbilt decided to change his business focus at the age of 70. In the 1860s, he became a railroad magnate, with Harlem Railway Company earning him his first million within a year. Within five years, Vanderbilt owned a network of railroads across America, with his trains connecting major cities. His ticket prices were lower than those of his competitors. Vanderbilt passed away on January 4, 1877, while still actively involved in business. He left behind an estimated fortune of $100 million, which was divided extravagantly. The majority, $95 million, went to his eldest son, William Henry Vanderbilt, while the rest was allocated to the church, the University in Nashville, and his other children, whom he believed were not interested in business. Cornelius Vanderbilt is famously quoted as saying, "I have been a fool all my life, except during the times when I have made money."
