Cornelius Vanderbilt (May 27, 1794 – January 4, 1877), nicknamed "the Commodore", was an American business magnate who built his wealth in railroads and shipping. After working with his father's business, he worked his way into leadership positions in inland and coastal shipping, then invested in the rapidly growing railroad industry, which transformed the geography of the United States.
As one of the richest Americans in history and wealthiest figures overall, Vanderbilt was the patriarch of the wealthy and influential Vanderbilt family. He provided the initial gift to found Vanderbilt University in Nashville, Tennessee. For his monopoly on shipping and the railroads, facilitated in part by political manipulation, Vanderbilt is often described as either a "captain of industry" or a "robber baron".
Cornelius Vanderbilt's great-great-great-grandfather, Jan Aertson or Aertszoon ("Aert's son"), was a Dutch farmer from the village of De Bilt in Utrecht, Netherlands, who immigrated to New Amsterdam (later New York) as an indentured servant in 1650. The Dutch van der ("of the") was eventually added to Aertson's village name to create "van der Bilt" ("of the Bilt"). This was eventually condensed to Vanderbilt.
Anthony Janszoon van Salee was one of Cornelius Vanderbilt's great-great-great-great-grandfathers.
Cornelius Vanderbilt was born in Staten Island, New York, on May 27, 1794, to Cornelius van Derbilt and Phebe Hand. He began working on his father's ferry in New York Harbor as a boy, quitting school at the age of 11. At the age of 16, Vanderbilt decided to start his own ferry service. According to one version of events, he borrowed $100 (equivalent to $2,100 in 2025) from his mother to purchase a periauger (a shallow draft, two-masted sailing vessel), which he christened the Swiftsure. However, according to the first account of his life, published in 1853, the periauger belonged to his father and the younger Vanderbilt received half the profit. He began his business by ferrying freight and passengers on a ferry between Staten Island and Manhattan. Such was his energy and eagerness in his trade that other captains nearby took to calling him "The Commodore" in jest—a nickname that stuck with him all his life.
While many Vanderbilt family members had joined the Episcopal Church, Cornelius Vanderbilt remained a member of the Moravian Church to his death. Along with other members of the Vanderbilt family, he helped erect a local Moravian parish church in his city.
On December 19, 1813, at age 19 Vanderbilt married his first cousin, Sophia Johnson. They moved into a boarding house on Broad Street in Manhattan.
They had 13 children together: Phebe in 1814, Ethelinda in 1817, Eliza in 1819, William in 1821, Emily in 1823, Sophia in 1825, Maria in 1827, Frances in 1828, Cornelius Jeremiah in 1830, George in 1832 (who died in 1836), Mary in 1834, Catherine in 1836, and another son named George in 1839.
In addition to running his ferry, Vanderbilt bought his brother-in-law John De Forest's schooner Charlotte and traded in food and merchandise in partnership with his father and others. But on November 24, 1817, a ferry entrepreneur named Thomas Gibbons asked Vanderbilt to captain his steamboat between New Jersey and New York. Although Vanderbilt kept his own businesses running, he became Gibbons's business manager.
When Vanderbilt entered his new position, Gibbons was fighting against a steamboat monopoly in New York waters, which had been granted by the New York State Legislature to the politically influential patrician Robert Livingston and Robert Fulton, who had designed the steamboat. Though both Livingston and Fulton had died by the time Vanderbilt started working for Gibbons, the monopoly was held by Livingston's heirs. They had granted a license to Aaron Ogden to run a ferry between New York and New Jersey. Gibbons launched his steamboat venture because of a personal dispute with Ogden, whom he hoped to drive into bankruptcy. To accomplish this, he undercut prices and also brought a landmark legal case—Gibbons v. Ogden—to the United States Supreme Court to overturn the monopoly.
Working for Gibbons, Vanderbilt learned to operate a large and complicated business. He moved with his family to New Brunswick, New Jersey, a stop on Gibbons' line between New York and Philadelphia. There his wife Sophia operated a very profitable inn, using the proceeds to feed, clothe and educate their children. Vanderbilt also proved a quick study in legal matters, representing Gibbons in meetings with lawyers. He also went to Washington, D.C., to hire Daniel Webster to argue the case before the Supreme Court. Vanderbilt appealed his own case against the monopoly to the Supreme Court, which was next on the docket after Gibbons v. Ogden. The Court never heard Vanderbilt's case, because on March 2, 1824, it ruled in Gibbons' favor, saying that states had no power to interfere with interstate commerce. The case is still considered a landmark ruling. The protection of competitive interstate commerce is considered the basis for much of the prosperity which the United States has generated.
After Thomas Gibbons died in 1826, Vanderbilt worked for Gibbons' son William until 1829. Though he had always run his own businesses on the side, he now worked entirely for himself. Step by step, he started lines between New York and the surrounding region. First he took over Gibbons' ferry to New Jersey, then switched to western Long Island Sound. In 1831, he took over his brother Jacob's line to Peekskill, New York, on the lower Hudson River. That year he faced opposition by a steamboat operated by Daniel Drew, who forced Vanderbilt to buy him out. Impressed, Vanderbilt became a secret partner with Drew for the next thirty years, so that the two men would have an incentive to avoid competing with each other.
On November 8, 1833, Vanderbilt was nearly killed in the Hightstown rail accident on the Camden and Amboy Railroad in New Jersey. Also on the train was president John Quincy Adams.
In 1834, Vanderbilt competed on the Hudson River against the Hudson River Steamboat Association, a steamboat monopoly between New York City and Albany. Using the name "The People's Line", he used the populist language associated with Democratic president Andrew Jackson to get popular support for his business. At the end of the year, the monopoly paid him a large amount to stop competing, and he switched his operations to Long Island Sound.
During the 1830s, textile mills were built in large numbers in New England as the United States developed its manufacturing base. Some of the first railroads in the United States were built from Boston to Long Island Sound, to connect with steamboats that ran to New York. By the end of the decade, Vanderbilt dominated the steamboat business on the Sound, and began to take over management of the connecting railroads. In the 1840s, he launched a campaign to take over the most attractive of these lines, the New York, Providence and Boston Railroad, popularly known as the Stonington. By cutting fares on competing lines, Vanderbilt drove down the Stonington stock price, and took over the presidency of the company in 1847. It was the first of the many railroads he would head.
During these years, Vanderbilt also operated many other businesses. He bought large amounts of real estate in Manhattan and Staten Island, and took over the Staten Island Ferry in 1838. It was in the 1830s when he was first referred to as "commodore", then the highest rank in the United States Navy. A common nickname for important steamboat entrepreneurs, by the end of the 1840s it was applied only to Vanderbilt.
When the California gold rush began in 1849, Vanderbilt switched from regional steamboat lines to ocean-going steamships. Many of the migrants to California, and almost all of the gold returning to the East Coast, went by steamship to Panama, where mule trains and canoes provided transportation across the isthmus. (The Panama Railroad was soon built to provide a faster crossing.) Vanderbilt proposed a canal across Nicaragua, which was closer to the United States and was spanned most of the way across by Lake Nicaragua and the San Juan River. In the end, he could not attract enough investment to build the canal, but he did start a steamship line to Nicaragua, and founded the Accessory Transit Company to carry passengers across Nicaragua by steamboat on the lake and river, with a 12-mile (19-kilometer) carriage road between the Pacific port of San Juan del Sur and Virgin Bay on Lake Nicaragua.