The Life and Legacy of Cornelius "Commodore" Vanderbilt, a Great Businessman

From his humble beginnings, Cornelius “Commodore” Vanderbilt became a giant in the railroad industry, and grew to end up one of the richest men in both American, and world history. Though the business techniques of the gilded age are commonly frowned upon, the methods with which Mr. Vanderbilt navigated the railroad landscape proved that he was a formidable, yet honorable businessman. Though some of his actions required looking out for the betterment of himself, rather than caring for others, the legacy left by Cornelius Vanderbilt proves his industrial prowess, and that he should be emulated for his cunning, and skill; operating with just practices, and earning his vast riches fairly.

Vanderbilt was born one of the more humble titans of industry, not being born of a particularly wealthy family, but one of moderate means, in Staten Island. His father owned a ferry in the New York harbor, and by the age of 11, he ventured out, with only $100 in his pocket and bought himself a periauger, a small ship for ferrying people across the harbor.

By the time he was 46 he owned various ships and ran a very prosperous business, having ownership of several exclusive ship lines, and his first railroad. His massive success, at such a (relatively) young age was not simply a feat all his own. Vanderbilt got his foot into the waters of big business when he both represented, for legal matters, and helped run Thomas Gibbons’ steamship corporation. His experience in Gibbon’s company warned him in the manners of monopoly when the Supreme Court case Gibbons v Ogden vied to overturn the Ogden monopoly.

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All of these experiences laid a foundation for Vanderbilt. Steamship running was the basis of his wealth, and by the 1850’s Commodore Vanderbilt was an established businessman, navigating both the waters of commerce and the Atlantic.

Some of the tactics that Vanderbilt used while climbing to such a massive height wealth could be frowned upon, or seen as unnecessary, but they are merely tactics of good business, and ones that will grant a person success, and wealth. Commodore did no such thing as destroying entire companies, or stock watering, any type of “corruption”, or morally unsavory actions were much more tame. One such instance was where some colleagues of the Commodore, Charles Morgan and Joseph White, refused to pay Vanderbilt the profits he made on the Accessory Transit company, he decided to strike back. Vanderbilt established a competing line, and began to slash prices; bringing them so low, in fact, that it forced White and Morgan to pay Vanderbilt his due, and ran a competing business, the Collins line into bankruptcy. Vanderbilt acted sneakily, and with no apparent regard towards the consequences of his actions. His “vengeance mission” resulted in the loss of another man’s business; granted, the Collins line was highly subsidised by the government, and was charging much higher priced admission than Vanderbilt’s. Whether or not the Collins line deserved to be run out of business is not clear, but Commodore’s actions were not the most ethical practices in the given situation.

In a situation that could be seen as reparations for his earlier unsavory practices, as the Civil War began, Vanderbilt saw an opportunity, and sought the opportunity to donate his largest steamship, the Vanderbilt, to the war effort. Though it was at first thankfully denied, Vanderbilt’s efforts finally availed, resulting in the bottling of the CSS Virginia (Merrimack). Vanderbilt’s efforts seemed to grant him full penance, though he successfully helped the war effort, he also lost his favorite son in the process, George Washington Vanderbilt I.

fortune, and was fully invested in the railroad industry, having already sold off the last of his ships. Commodore was playing it safe, refusing to embroil himself in any conflicts, or shady business dealings, preferring to stay wholesome, and stake his claim; that is, until he was provoked. Seeking to corner the market on the Erie canal, Vanderbilt bought massive amounts of Erie Railway stock, this displeased Jay Gould. Gould and Vanderbilt’s small feud embittered into a public rivalry, ending when Vanderbilt sought the help of the courts to retrieve the money he had taken from him, due to Gould’s stock watering in the Erie Railway. Contrary to previous efforts to regain his hard-earned money, in this instance, Commodore was older, and wiser. Vanderbilt did not resort to immoral methods of obtaining what he wanted; his morality can be seen by simply comparing it to others of his time. Jay Gould and Cornelius Vanderbilt both sought after control of the Erie Railway, although Vanderbilt though legal and morally sound methods, which is extremely generous to attribute to Gould’s handling of the situation. Vanderbilt’s age and experience helped inform his decisions to “play it safe”, and to do the right thing, proving to the world that massive success in business need not come through immoral or untasteful means.

Cornelius Vanderbilt’s legacy was a great one. He was an ethical businessman, with achievements that reach far beyond his lifetime. Being both one of the richest men in the history of time, as well as building such lasting institutions as New York’s Grand Central Station, the “Commodore” truly build an American dynasty. Except for the rare occasion, Vanderbilt preferred to keep his practices on the cleaner side of the law, only straying once into the grey, with disastrous results. Vanderbilt’s legacy truly ended well, one of the last actions he ever committed being donating over S1 million dollars to the then “Central University” allowing it to open, hoping it would “restore the sectional wounds inflicted by the Civil War”, becoming his now eponymous University. Vanderbilt’s legacy stretches far beyond the reach of trains and colleges, his influence touches nearly every sector of modern America; be it architecture, education, or even news reporting. The Commodore helped to proliferate well-mannered business ethics, while also becoming one of the richest men in American, if not world, history.