"Oh yes there will; yes there will!" Vanderbilt insisted, as Allen later recalled, "in that peculiar emphatic way that I have no doubt he meant it to be so."3 At the time, Vanderbilt was reordering the hierarchy of his heirs apparent, his sons and sons-in-law. Allen, who had served him so well for so long, slipped inexorably downward. He had self-righteously opposed the steamship sale, and now resigned his directorship in the Accessory Transit Company in protest. Horace Clark, on the other hand, continued his climb in his father-in-law"s favor. Vanderbilt had asked him to review the terms of the sale, and now referred to him as his "professional adviser."4 Daniel Torrance and James Cross hovered nearby, but Vanderbilt treated them as middle managers rather than possible successors. Daniel Torrance and James Cross hovered nearby, but Vanderbilt treated them as middle managers rather than possible successors.
As for the sons by blood, Billy lurked in Staten Island obscurity, while George remained too young to be of much note-though he was strong and athletic, a favorite of his father. Cornelius Jeremiah continued to walk under the shadow of his addiction to gambling and his episodic epilepsy. His sister Mary later remembered how their mother confronted the Commodore in their home around this time. "Your hatred or dislike of Cornelius arises from the fret of his affliction," she insisted. "You intend to give all your money to William."
The old man said nothing, as usual.5 Leaving a legacy grew increasingly important to him, but what he intended to do with his wealth remains a mystery. Frugality, suspicion, and silence guided his every step. Leaving a legacy grew increasingly important to him, but what he intended to do with his wealth remains a mystery. Frugality, suspicion, and silence guided his every step.
In contemplating his mortality and his fractious family, Vanderbilt embarked on a most un-Vanderbiltian adventure. Reports soon spread that he was building a new steamship larger than any of those he had just sold. "Various opinions were entertained as to his ultimate designs," reported Rev. John Overton Choules, a noted travel writer. "Many imagined that Mr. Vanderbilt... was to sell his ship to this monarch, or that government-or he was to take contracts for the supply of war steamers." Choules learned the truth from Vanderbilt himself. In February, the minister sat down with the Commodore in the library at 10 Washington Place. There Vanderbilt confirmed the wildest rumor of all: that the great steamship, named North Star North Star, was to be his private yacht. He planned to take his extended family on a grand tour of the Old World, and he invited Rev. Choules and his wife to join them. "Mr. V. expressly informed me that his sole object was to gratify his family and afford himself an opportunity to see the coast of Europe," Choules wrote. "He observed that, after more than thirty years" devotion to business, in all which period he had known no rest from labor, he felt that he had a right to a complete holiday"6 It seemed out of character that this "boorish, vy. austere" businessman (as the Mercantile Agency would call him that May) would splurge on his family in such grand fashion, and on a grand tour of Europe, no less. But even so monomaniacal a moneymaker as Vanderbilt was capable of ordinary human complexity. In his own blunt fashion, he loved his wife and children. Indeed, the North Star North Star was a sign that, as he attained public eminence, he paused, as it were, and looked fondly at the family he had pressed so hard for so long. Then, too, there was his brooding over his advancing age. Recently the leading men of his day had started to die off: John Jacob Astor, Philip Hone, Daniel Webster, and Henry Clay. Believing that he had limited time, he sincerely wanted a holiday. was a sign that, as he attained public eminence, he paused, as it were, and looked fondly at the family he had pressed so hard for so long. Then, too, there was his brooding over his advancing age. Recently the leading men of his day had started to die off: John Jacob Astor, Philip Hone, Daniel Webster, and Henry Clay. Believing that he had limited time, he sincerely wanted a holiday.
This is not to say that Vanderbilt underwent a Scrooge-like conversion to Christian charity. He refused to bring along Corneil, for example. And two of his oldest obsessions, pride and patriotism, shaped his vision for the voyage. "I have a little pride, as an American, to sail over the waters of England and France," he wrote to Hamilton Fish, now a U.S. senator, on February 15, "up the Baltic and through the Mediterranean and elsewhere, under this flag without a reflection of any kind that it is a voyage for gain-with such a vessel as will give credit to the enterprize of our country." He wrote to Fish to learn if the North Star North Star would retain the protection of the U.S. government, since Congress had not covered private yachts under the statute for American shipping abroad. "When the law was pa.s.sed," he observed (or perhaps boasted), "they did not think at that time our yachts would ever sail to a foreign port." would retain the protection of the U.S. government, since Congress had not covered private yachts under the statute for American shipping abroad. "When the law was pa.s.sed," he observed (or perhaps boasted), "they did not think at that time our yachts would ever sail to a foreign port."7 Vanderbilt made careful preparations for the smooth operation of his corporate interests during his long absence. Amid rumors that he himself would take the presidency of the Accessory Transit Company, he forced Joseph L. White and his clique to resign from the board of directors. Vanderbilt resumed his seat on the board and brought in two close allies, Nelson Robinson and Charles Morgan. The Tribune Tribune reported talk that other friends, including Robert Schuyler, would become directors as well. reported talk that other friends, including Robert Schuyler, would become directors as well.8 The Vanderbilt group also took steps to put the Pacific end of the business in capable hands. At the end of January, they called to New York Cornelius K. Garrison, a former Mississippi River steamboat captain who had established a successful bank in Panama. On February 1, Garrison agreed to an unusually lucrative two-year contract. As Accessory Transit"s San Francisco agent, he could keep a 5 percent commission on receipts and 2.5 percent on disburs.e.m.e.nts, up to a maximum of $60,000 per year; or he could choose to limit himself to 2.5 percent all around, with no limit on his income. On February 19, Garrison departed New York to embark upon his new career in San Francisco.9 With White out and such trusted men as Morgan and Garrison in, Vanderbilt could sail for Europe with peace of mind. With White out and such trusted men as Morgan and Garrison in, Vanderbilt could sail for Europe with peace of mind.
No other unfinished business was as important as Vanderbilt"s indictment for manslaughter in Richmond County for the Staten Island Ferry"s deadly bridge collapse. He showed no sign of concern, however, and for good reason: on February 26, the Brooklyn Eagle Brooklyn Eagle announced that the indictment had been quashed. announced that the indictment had been quashed.10 In all likelihood, the result surprised no one. Vanderbilt dominated Staten Island more thoroughly than any medieval baron did his manor. For all his wealth, his mansion off Washington Square, his international prominence, he remained very much a man of Richmond County, a son of the soil between the Narrows and the Kills. In all likelihood, the result surprised no one. Vanderbilt dominated Staten Island more thoroughly than any medieval baron did his manor. For all his wealth, his mansion off Washington Square, his international prominence, he remained very much a man of Richmond County, a son of the soil between the Narrows and the Kills.
Jacob J. Van Pelt brought up Vanderbilt"s extensive Staten Island holdings in conversation one day early in 1853. For years, Van Pelt had sold timber to Vanderbilt for the construction of his ships; in recent weeks, they had begun to socialize, riding together on Vanderbilt"s wagon as he whipped a pair of fast horses out of the narrow streets of New York and up through the rural stretches of upper Manhattan. "The Commodore asked me once what was the best thing to invest money in," Van Pelt recalled. "I told him I thought he ought to improve his Staten Island property."
"Oh, the Staten Island property?" Vanderbilt replied. "The t.i.tle ain"t worth a d.a.m.n."
"I didn"t think you bought property unless it had a good t.i.tle," Van Pelt said.
"Well, I didn"t pay much for it."11 Indeed he had not, for he had purchased his crucial waterfront real estate from the dying Richmond Turnpike Company. His control of key landings had sustained his monopoly with the Staten Island Ferry for years; but now his t.i.tle was under siege by the state attorney general, and he faced two rival ferries. (In addition to George Law"s, another had been started by Minthorne Tompkins, the son of the late vice president.) With his departure looming closer, Vanderbilt had little time to rescue his imperiled fortunes on Staten Island. His ferry, once stripped of its landings, could well be crushed during his long absence overseas, and one of his most valuable businesses would become worthless. As the days ticked by, he simultaneously lobbied the New York legislature to pa.s.s a law confirming his t.i.tle and opened negotiations with Law and Tompkins for a consolidation of the three ferries. Using his lobbying for leverage-along with Tompkins"s anxiety over the value of his own Staten Island real estate-he achieved a triumph. In his most vulnerable moment, he convinced his rivals to buy him out for $600,000-$150,000 in cash, plus $50,000 a year (the annual profits on the ferry) for the next nine years.12 "I asked him if he had everything fixed," Van Pelt later reported. "He said yes." Vanderbilt had picked up his friend for another rattling fast ride shortly before his planned departure. The Commodore added, "Van, I have got eleven millions invested better than any eleven millions in the United States. It is worth twenty-five percent a year without any risk." Given the size of Vanderbilt"s business operations, the $11 million figure rang true. It would have made him one of a half-dozen or so of the richest men in America; only William B. Astor and very few others could boast notably larger estates. The risk-free rate of return he cited was clearly hyperbole, but his point was clear: he had taken great care to put his affairs in order.
To Van Pelt, Vanderbilt seemed very much like a man preoccupied by his own death-and incapable of accepting it. "Commodore," he once asked, "suppose anything should happen, what are you going to do with your property?" (As Van Pelt added, "He never liked to have me say "die," so I always said, "if anything happens."") Vanderbilt replied, "They will all have plenty if they let things stay the way I leave them." He thought he knew best, and always would know best, even after he was dead.13 THE NATION WATCHED AS THE North Star North Star approached completion. On March 10, it slid down the ways at Simonson"s shipyard into the East River, to rousing cheers from a crowd of onlookers. It was towed to the Allaire Works dock, where a swarm of engineers spent the next few weeks installing its ma.s.sive twin engines, attracting the notice of newspapers as well as technical experts. approached completion. On March 10, it slid down the ways at Simonson"s shipyard into the East River, to rousing cheers from a crowd of onlookers. It was towed to the Allaire Works dock, where a swarm of engineers spent the next few weeks installing its ma.s.sive twin engines, attracting the notice of newspapers as well as technical experts.
The intense public interest that surrounded Vanderbilt"s ship and trip stemmed from more than curiosity about the rich. "Although it is solely a personal matter," the New York Herald New York Herald explained, "it partakes somewhat of a national character." Americans considered the regimes of Europe their ideological opponents. Monarchs ruled all of the Old World-even France, now that Louis Bonaparte had declared himself Emperor Napoleon III. In the United States, less than eighty years had pa.s.sed since the Revolution, and the people thought of themselves as the guardians of a bold experiment in republican government and social equality. "The sovereigns of Europe," the explained, "it partakes somewhat of a national character." Americans considered the regimes of Europe their ideological opponents. Monarchs ruled all of the Old World-even France, now that Louis Bonaparte had declared himself Emperor Napoleon III. In the United States, less than eighty years had pa.s.sed since the Revolution, and the people thought of themselves as the guardians of a bold experiment in republican government and social equality. "The sovereigns of Europe," the Herald Herald added, "have looked upon our increasing power with mingled surprise and alarm-surprise at our progress, and alarm lest the lesson which it silently inculcates might be learned by their own oppressed subjects." The added, "have looked upon our increasing power with mingled surprise and alarm-surprise at our progress, and alarm lest the lesson which it silently inculcates might be learned by their own oppressed subjects." The North Star North Star would bring them face-to-face with the superiority of American democracy. As would bring them face-to-face with the superiority of American democracy. As Scientific American Scientific American put it, "Queen Victoria, Czar Nicholas of Russia, and Napoleon III will get some of the conceit knocked out of them by a private citizen of New York." put it, "Queen Victoria, Czar Nicholas of Russia, and Napoleon III will get some of the conceit knocked out of them by a private citizen of New York."14 Of course, fascination with this fantastic display of wealth did account for much of the attention. It is important to remember that steamships were the largest, most complicated, and most expensive man-made objects in existence (apart from a very few buildings). Most of the vessels that plied the oceans were still sailing ships; even the U.S. Navy remained largely under sail, with only sixteen steam vessels of any description in 1852 (and only nine of those categorized as frigates or "first-cla.s.s" steamers).15Now Vanderbilt had constructed, as a personal yacht, a steamship to rival the largest commercial liners-260 feet in length (at the keel; it stretched to 270 feet on deck) and 2,500 tons. The press lovingly described two mighty walking-beam engines, their pistons pumping a ten-foot stroke, fed by four ma.s.sive boilers, each ten feet in diameter. The Commodore had designed the North Star North Star himself; in keeping with his now-standard pattern, it boasted enormous thirty-four-foot paddlewheels and a straight stem (as the nearly vertical line of the bow was called). himself; in keeping with his now-standard pattern, it boasted enormous thirty-four-foot paddlewheels and a straight stem (as the nearly vertical line of the bow was called).
The ship"s luxuriousness attracted the most notice. A grand staircase led down to a reception area, with a large circular couch, which opened onto the main saloon. "The furniture... is of rosewood, carved in the rich and splendid style of Louis XV covered with a new and elegant material of figured velvet plush," the New York Tribune New York Tribune reported. "Connected with this saloon are ten staterooms, superbly fitted up, each with a French reported. "Connected with this saloon are ten staterooms, superbly fitted up, each with a French armour le gles armour le gles, beautifully enamelled in white, with a large gla.s.s-door.... The berths are furnished with elegant silk lambricans and lace curtains. Each room is fitted up with a different color, viz: green and gold, crimson and gold, orange, etc." Then there was the main dining saloon, paneled with polished marble and Naples granite, with tables boasting fine silverware and china with a ruby and gold finish. "The ceiling of the room is painted white, with scroll-work of purple, light green, and gold, surrounding medallion paintings of Webster, Clay, Washington, Franklin, and others."16 Vanderbilt-who paid close attention to his reputation-fully grasped the public impact of his grand holiday. Indeed, there is every reason to think that he planned the entire thing with an eye on his growing status as a cultural icon. He was not merely a businessman, but "one of our steamship n.o.bility" as Scientific American Scientific American wrote. Compared with his "magnificent steamship-his pleasure steam yacht... the yachts of the English n.o.bility are like fishing cobles to a seventy-four gun ship." wrote. Compared with his "magnificent steamship-his pleasure steam yacht... the yachts of the English n.o.bility are like fishing cobles to a seventy-four gun ship."17 He was no mere rich man; he was the Commodore. He was no mere rich man; he was the Commodore.
When May 19, the date of departure, arrived, Vanderbilt encountered an omen of what lay before him in the year ahead-a jarring reminder that there was indeed no friendship in trade. All spring, labor trouble had wracked the docks. Firemen and coal pa.s.sers, the crewmen who fed the fires under the boilers, had organized repeated strikes in April, forming angry processions from ship to ship along the waterfront. Just a week before the North Star"s North Star"s departure, a mob of white dockworkers attacked their black counterparts when they learned that the black men received lower wages, which undercut their own pay departure, a mob of white dockworkers attacked their black counterparts when they learned that the black men received lower wages, which undercut their own pay18 The The North Star North Star had a picked crew of firemen and coal pa.s.sers who had served on Vanderbilt"s other ships, but they, too, caught the militant mood. One hour before departure, they (and some of the sailors) called a strike. had a picked crew of firemen and coal pa.s.sers who had served on Vanderbilt"s other ships, but they, too, caught the militant mood. One hour before departure, they (and some of the sailors) called a strike.
"Mr. Vanderbilt refused to be coerced by the seeming necessity of the case," Rev. Choules wrote. "He would not listen for a moment to demands so urged, and in one hour selected such firemen as could be collected; and many of them were green hands, and ill-adapted to give efficient service in their most important department." The action was so in keeping with Vanderbilt"s personality, it scarcely needs comment. Rather than accept his disadvantage, he fired the strikers and took his chances with untried men.19 At ten thirty in the morning, after the new firemen had been ushered down into the hold and handed their coal shovels, the crew cast loose the lines that held the ship to the dock at the foot of Grand Street. The side-wheels began to churn, and the immense hull of the North Star North Star eased into the East River. Some four hundred guests milled about the deck with Vanderbilt and his family; the visitors were to sail aboard until Sandy Hook, where they would transfer to the eased into the East River. Some four hundred guests milled about the deck with Vanderbilt and his family; the visitors were to sail aboard until Sandy Hook, where they would transfer to the Francis Skiddy Francis Skiddy for the return to New York. for the return to New York.
Suddenly the happy crowd felt a jolt. The rapidly ebbing tide had caught the ship and smacked the stern into another pier. Vanderbilt shouted at the pilot to spin the wheel hard aport, to carry the North Star North Star into the main channel, but the current was too strong. The ship struck hard on a hidden reef, and the alarmed visitors lost their footing as it keeled over onto one side, tilting the deck at a frightening angle. "For a moment," into the main channel, but the current was too strong. The ship struck hard on a hidden reef, and the alarmed visitors lost their footing as it keeled over onto one side, tilting the deck at a frightening angle. "For a moment," Scientific American Scientific American reported, "there appeared danger of her capsizing." In a breath, the ship righted itself-but it was still "stuck fast." reported, "there appeared danger of her capsizing." In a breath, the ship righted itself-but it was still "stuck fast."
The grand voyage had come to a halt 150 feet from the pier, with the near sinking of the celebrated yacht. But the Commodore knew how to manage a crisis. As the pa.s.sengers returned to sh.o.r.e in another boat, he telegraphed Secretary of State William L. Marcy asking permission to use the U.S. Navy"s dry dock across the East River. Permission was immediately granted. As soon as the rising tide lifted the North Star North Star free of the rocks, it steamed into the facility for inspection and repairs. That night Vanderbilt dined aboard ship (as it sat in the stocks of the dry dock), accompanied by broker Richard Sch.e.l.l, and the two men drank a toast to Marcy. The Commodore paid the not inconsiderable sum of $1,500 for use of the dock. To Marcy, the money mattered less than facilitating a voyage that would serve as a bit of informal public diplomacy free of the rocks, it steamed into the facility for inspection and repairs. That night Vanderbilt dined aboard ship (as it sat in the stocks of the dry dock), accompanied by broker Richard Sch.e.l.l, and the two men drank a toast to Marcy. The Commodore paid the not inconsiderable sum of $1,500 for use of the dock. To Marcy, the money mattered less than facilitating a voyage that would serve as a bit of informal public diplomacy20 Vanderbilt"s children and their spouses* fretted over a long delay; fortunately the damage was superficial, and easily fixed. "At seven minutes to eight o"clock P.M. on the 20th of May," Choules wrote, "we left the gates [of the dry dock] amid the cheering of our kind friends who lined the dock; and, as we steamed down the river, we fired salutes and received them from various ships, and at the Battery, where a large party had gathered to give us a farewell greeting." As the fretted over a long delay; fortunately the damage was superficial, and easily fixed. "At seven minutes to eight o"clock P.M. on the 20th of May," Choules wrote, "we left the gates [of the dry dock] amid the cheering of our kind friends who lined the dock; and, as we steamed down the river, we fired salutes and received them from various ships, and at the Battery, where a large party had gathered to give us a farewell greeting." As the North Star North Star churned through the Narrows, past the home of Vanderbilt"s aged mother, the crew fired off cannons and shot rockets into the clear night sky. The flinty old woman had taught the Commodore his shrewdness and frugality; now he saluted her from an emblem of extravagance, on a voyage that would prove shrewder than anyone could know. churned through the Narrows, past the home of Vanderbilt"s aged mother, the crew fired off cannons and shot rockets into the clear night sky. The flinty old woman had taught the Commodore his shrewdness and frugality; now he saluted her from an emblem of extravagance, on a voyage that would prove shrewder than anyone could know.
At nine thirty in the evening, the North Star North Star pa.s.sed Sandy Hook and slowed to a halt to allow the pilot, John Martineau, to board a boat for the return to New York. Martineau may have been a bit dispirited after his highly public embarra.s.sment of the day before, and perhaps more so when, as he was about to step off the ship, he was called to Vanderbilt"s cabin. He encountered Horace Clark, the Commodore"s "professional adviser." The Commodore, Clark informed Martineau, had sent a letter to the New York newspapers concerning his conduct. "He is entirely free from censure," Vanderbilt wrote. "I know Mr. Martineau to be as good a pilot as there is out of the Harbor of New-York." Then Clark dropped a "purse of gold" into Martineau"s hand. pa.s.sed Sandy Hook and slowed to a halt to allow the pilot, John Martineau, to board a boat for the return to New York. Martineau may have been a bit dispirited after his highly public embarra.s.sment of the day before, and perhaps more so when, as he was about to step off the ship, he was called to Vanderbilt"s cabin. He encountered Horace Clark, the Commodore"s "professional adviser." The Commodore, Clark informed Martineau, had sent a letter to the New York newspapers concerning his conduct. "He is entirely free from censure," Vanderbilt wrote. "I know Mr. Martineau to be as good a pilot as there is out of the Harbor of New-York." Then Clark dropped a "purse of gold" into Martineau"s hand.21 The North Star North Star steamed into the Atlantic, its paddlewheels churning the calm sea under bright moonlight. An unexpected act of generosity marked the departure; but then, the entire voyage was an unexpected act of generosity. More telling may have been Vanderbilt"s choice of messenger. With nearly his entire family aboard, from his oldest son to those sons-in-law who had long served him as lawyers, managers, and agents, he chose Clark. It was a sign of things-and trouble-to come. steamed into the Atlantic, its paddlewheels churning the calm sea under bright moonlight. An unexpected act of generosity marked the departure; but then, the entire voyage was an unexpected act of generosity. More telling may have been Vanderbilt"s choice of messenger. With nearly his entire family aboard, from his oldest son to those sons-in-law who had long served him as lawyers, managers, and agents, he chose Clark. It was a sign of things-and trouble-to come.
VANDERBILT HAD PREPARED as well as anyone could have for a long absence overseas. It would not be enough. "Ships are but boards, sailors but men," Shylock wisely observes in as well as anyone could have for a long absence overseas. It would not be enough. "Ships are but boards, sailors but men," Shylock wisely observes in The Merchant of Venice The Merchant of Venice. "There be land rats and water rats-water thieves and land thieves."
When Vanderbilt had resumed his place in the Accessory Transit Company, he had not, in fact, moved to take complete control. It appears that he acted merely to protect his interests, to ensure an income stream as agent during his prolonged absence.22 As a result, the company suffered a power vacuum. It was filled, in part, by a man intimately familiar with the company"s affairs, a man who still served as its counsel, if no longer as a director: Joseph L. White. Like a tapeworm, he had wound his way into the intestines of the Transit Company, and would not be removed until both he and it had been murdered. As a result, the company suffered a power vacuum. It was filled, in part, by a man intimately familiar with the company"s affairs, a man who still served as its counsel, if no longer as a director: Joseph L. White. Like a tapeworm, he had wound his way into the intestines of the Transit Company, and would not be removed until both he and it had been murdered.
White"s influence persisted because it was of a particular kind, confined to the company"s relationship with the U.S. and foreign governments. The board did elect a new president, James De Peyster Ogden, but, as White explained to Secretary of State Marcy "He is new in the company & hence not familiar with its antecedents." With characteristic arrogance and condescension, White took it upon himself to advise the new administration of President Franklin Pierce on Nicaraguan affairs. "I know know the Central Americans quite as well, I think, as any man in this country," he told Marcy. "Firmness & determination will accomplish anything with them." the Central Americans quite as well, I think, as any man in this country," he told Marcy. "Firmness & determination will accomplish anything with them."23 White was not wealthy enough to become a dominant stockholder-but Charles Morgan was. Initially, at least, Morgan made no attempt to take power. He waited until the North Star North Star steamed over the horizon, then began to buy up the company"s shares. "The movement in Nicaragua is of such a decided character," the steamed over the horizon, then began to buy up the company"s shares. "The movement in Nicaragua is of such a decided character," the New York Herald New York Herald reported on May 28. "A large party have taken hold of it." Soon a rumor ran through Wall Street that this was more than a short-term operation. Morgan, the brokers whispered, "is to take superintendence of the Company" reported on May 28. "A large party have taken hold of it." Soon a rumor ran through Wall Street that this was more than a short-term operation. Morgan, the brokers whispered, "is to take superintendence of the Company"24 As Morgan strengthened his grip on the stock, White wormed into his confidence. Each offered something the other lacked. White could handle political intrigue with slippery, insinuating skills that did not come easily to a self-made businessman like Morgan; Morgan, on the other hand, possessed the wealth, financial ac.u.men, and large blocks of stock that White lacked. The two men, it appears, agreed on a new axis of power in the Accessory Transit Company. On Monday, July 18, they held a new election for the board of directors. White and his lackey H. L. Routh resumed their seats, and Morgan took office as president. Vanderbilt was out.25 Nelson Robinson survived on the board, but he could not protect the Commodore. Robinson"s own interests were complicated enough. By March 1853, he had acc.u.mulated twelve thousand shares of the Erie Railroad. At a par value of 100, that made his holdings officially worth $1.2 million. There were few American businesses that, in their entirety, had a value equal to his stake in Erie. In the stock market, though, the share price was only 83, and it was falling. The stress proved to be too much for him. He declared that, as of May 27, he would retire from business. "The tremendous vicissitudes of stocks affected his nerves," a Wall Street observer later wrote. "His family implored, his doctor insisted. At last he yielded and retreated into the country"26 Vanderbilt"s other long-standing ally, Daniel Drew, did nothing to help his absent friend. After the loss of the North America North America, he had abandoned all interest in California steamship lines. In any event, he was busy with his religious duties. For the past year, he had raised funds for a very special project of a Methodist charity, the Ladies" Home Missionary Society: to purchase the Old Brewery, the hulking warren that glowered over Paradise Square at the heart of the infamous Five Points, the most violent, impoverished slum in the city. Since 1837, the very poorest of the very poor had packed into the filthy and infested building, "creating a tenament so repulsive that it quickly became the most notorious in New York," writes historian Tyler Anbinder. "Here is vice at its lowest ebb," wrote the National Police Gazette National Police Gazette, "a crawling and fetid vice, a vice of rags and filth." Drew collected the $16,000 to buy the structure, which was then ripped down. On June 17, the society celebrated the opening of a new four-story mission where the Old Brewery had long stood.27 With uncontested control of Accessory Transit, Morgan and White removed Vanderbilt from his post as agent, depriving him of his rich commission on tickets. "This payment was regularly made to Mr. Vanderbilt up to the time he left in his yacht for Europe," the New York Herald New York Herald reported on July 29. "Since, the company have refused to make payments to Mr. Vanderbilt"s agent." Morgan himself took over as agent. Brokers on Wall Street chattered anxiously about the act of treachery. As the reported on July 29. "Since, the company have refused to make payments to Mr. Vanderbilt"s agent." Morgan himself took over as agent. Brokers on Wall Street chattered anxiously about the act of treachery. As the Herald Herald observed, "Trouble is antic.i.p.ated upon the return of Commodore Vanderbilt." observed, "Trouble is antic.i.p.ated upon the return of Commodore Vanderbilt."28 AS THE NORTH STAR NORTH STAR CHURNED ACROSS CHURNED ACROSS unusually smooth seas, smoke billowing out of its twin black funnels, Vanderbilt instructed Captain Eldridge to cover no more than 250 miles every twenty-four hours. "As my journey would be a long one," he explained in a letter to a friend in New York, "and as I meant to have the ship in such order on our arrival in a foreign country as to be a credit to our "Yankee land," I did not wish to hazard this by making any attempt to obtain high rates of speed." Pushing a new engine too hard could damage it; steam engines generally had to be broken in before they could produce their best speed. unusually smooth seas, smoke billowing out of its twin black funnels, Vanderbilt instructed Captain Eldridge to cover no more than 250 miles every twenty-four hours. "As my journey would be a long one," he explained in a letter to a friend in New York, "and as I meant to have the ship in such order on our arrival in a foreign country as to be a credit to our "Yankee land," I did not wish to hazard this by making any attempt to obtain high rates of speed." Pushing a new engine too hard could damage it; steam engines generally had to be broken in before they could produce their best speed.
Stoking a fire, though, was no mere unskilled labor; keeping the heat under a boiler at just the right level required experience. And the untrained firemen Vanderbilt had plucked off the wharf when he fired the strikers had no experience. After the first day pa.s.sed, Vanderbilt wrote, "I was somewhat astonished." Instead of 250 miles, the ship made 272. He went to the engine room to investigate, and found the green hands stoking away heedlessly, the great pistons and beams of the engines pounding up and down, turning the wheels at fourteen and a half revolutions per minute.
He complained about the firemen, but he found that his guests were, in fact, delighted by the ship"s speed. And so the man who always knew better than everyone else did something unusual: he indulged them.
The party were so elated and pressed so hard to let her make one day"s run, that I finally told the engineer that he might let her engines make 14 revolutions per minute for twenty-four hours, but no higher would I permit him to go. Whenever it rated a particle above this I compelled him to shut the throttle valve and confine her to the 14 To my astonishment, at the end of twenty-four hours, she had made three hundred and forty-four miles, a greater distance, by twenty-four miles, than ever was made from New York to Europe.
It ran as fast as eighteen knots, a remarkable speed in 1853.29 Vanderbilt referred to his group as a party, and a party they had. Even the ignorance of the raw sailors amused them. At one point, the mate ordered one of the green hands to ring two bells, a traditional mark of time at sea. The mate grew annoyed when nothing happened. "He again called for two bells," Rev. Choules chortled in a letter home, "and the novice innocently said, "Please, sir, I can"t find but one."" Most evenings, the guests-attired in their heavy broadcloth suits and elaborate dresses, and tended by a squad of Irish maids-gathered in the main saloon, where one of the men played a piano and the ladies sang. Sometimes the crew joined in. Some of the sailors were black, and, Choules claimed, "were decidedly fond of negro melody. One of them, who answered to the euphonious name of "Pogee," was, I think, quite the equal of the Christy Minstrels [a famous musical group that performed in blackface]."30 Now began the hour of Vanderbilt"s glory. Southampton, Copenhagen, and St. Petersburg; Le Havre, Malaga, and Naples; Malta, Constantinople, and Gibraltar: the North Star North Star sailed around Europe in triumph over the course of four months. The triumph was technical; at each port, marine experts pored over the ship. Commanders of the Royal Navy inspected its beam engines; officers of the tsar"s fleet sketched its lines; pashas of the sultan"s forces browsed through its cabins. And the triumph was patriotic: American newspapers published accounts of the sailed around Europe in triumph over the course of four months. The triumph was technical; at each port, marine experts pored over the ship. Commanders of the Royal Navy inspected its beam engines; officers of the tsar"s fleet sketched its lines; pashas of the sultan"s forces browsed through its cabins. And the triumph was patriotic: American newspapers published accounts of the North Star North Star"s progress, reporting its speed and fuel efficiency, describing the thousands of spectators who lined up at each port to visit the gigantic yacht. Editors across the United States reprinted lengthy articles from the English press. "In this magnificent trip to England by Mr. Vanderbilt," the Chicago Tribune Chicago Tribune quoted the quoted the Southampton Daily News Southampton Daily News as writing, "Brother Jonathan has certainly gone ahead of himself." ("Brother Jonathan" was a nickname for America in the 1850s, as common as "Uncle Sam" later would be.) as writing, "Brother Jonathan has certainly gone ahead of himself." ("Brother Jonathan" was a nickname for America in the 1850s, as common as "Uncle Sam" later would be.)31 And the triumph was social. When the North Star North Star docked in Southampton, Vanderbilt, with his wife and guests, took the train to London, where the prestigious expatriate American banker George Peabody played host-tendering his box at the opera, for example, to the Commodore and his family. The U.S. minister to Great Britain, Joseph R. Ingersoll, held a formal reception for Vanderbilt. "The attendance was large," Choules wrote, "and the party a very fashionable one. The display of diamonds was very brilliant. General attention was directed to Mr. Vanderbilt, who was quite the man of the occasion; and all seemed desirous to obtain an introduction." docked in Southampton, Vanderbilt, with his wife and guests, took the train to London, where the prestigious expatriate American banker George Peabody played host-tendering his box at the opera, for example, to the Commodore and his family. The U.S. minister to Great Britain, Joseph R. Ingersoll, held a formal reception for Vanderbilt. "The attendance was large," Choules wrote, "and the party a very fashionable one. The display of diamonds was very brilliant. General attention was directed to Mr. Vanderbilt, who was quite the man of the occasion; and all seemed desirous to obtain an introduction."32 Lords and squires and millionaires crowded around the man from Staten Island, pressing him to bring his yacht up the Thames "and enable the fashionable world-then, of course, in London-to visit the Lords and squires and millionaires crowded around the man from Staten Island, pressing him to bring his yacht up the Thames "and enable the fashionable world-then, of course, in London-to visit the North Star," North Star," Choules added. Vanderbilt begged off, lest he "take a step which might appear like ostentation"-as if anything could be more ostentatious than crossing the Atlantic in such a yacht. More likely he wished to save coal. Choules added. Vanderbilt begged off, lest he "take a step which might appear like ostentation"-as if anything could be more ostentatious than crossing the Atlantic in such a yacht. More likely he wished to save coal.
The lord mayor of London invited Vanderbilt to a soiree, where the Commodore and Sophia mingled with the Archbishop of Canterbury and Thomas Carlyle. Vanderbilt went away with a party to the races at Ascot, the most fashionable racetrack in the world. In St. Petersburg came chats with Grand Duke Constantine, second son of the tsar, and a visit to the Winter Palace. In Florence came a session with Hiram Powers, perhaps the most famous American artist of the age, who sculpted a bust of Vanderbilt"s proud head (for $1,000) and then accompanied him around Italy. In Naples the royal government turned the North Star North Star away, for fear that the ship carried antimonarchical arms or rebels, but Vanderbilt and his wife paid calls on the British governors of Malta and Gibraltar. away, for fear that the ship carried antimonarchical arms or rebels, but Vanderbilt and his wife paid calls on the British governors of Malta and Gibraltar.33 On May 27, less than a week after the North Star"s North Star"s departure from New York, the Mercantile Agency recorded its scathing judgment of Vanderbilt as "illiterate & boorish," not to mention "offensive." This judgment was wrong-or, at least, incomplete. Though he could still manifest a brutal demeanor when locked in combat, he had learned by 1853 to affect the sort of polish expected of a man of wealth and accomplishment. Men ranging from Hiram Powers to Lord Palmerston were struck by his confident, commanding air, an impression reinforced by his erect posture and neat appearance. Though Choules was no disinterested observer, he spoke for many when he reflected on Vanderbilt"s "dignified reserve" and "dignified self-control." (After the journey, he would broadcast these judgments in a popular book on the trip.) departure from New York, the Mercantile Agency recorded its scathing judgment of Vanderbilt as "illiterate & boorish," not to mention "offensive." This judgment was wrong-or, at least, incomplete. Though he could still manifest a brutal demeanor when locked in combat, he had learned by 1853 to affect the sort of polish expected of a man of wealth and accomplishment. Men ranging from Hiram Powers to Lord Palmerston were struck by his confident, commanding air, an impression reinforced by his erect posture and neat appearance. Though Choules was no disinterested observer, he spoke for many when he reflected on Vanderbilt"s "dignified reserve" and "dignified self-control." (After the journey, he would broadcast these judgments in a popular book on the trip.)34 Vanderbilt even came to terms with his old rival, the English language. Not that he conquered it; as Lambert Wardell later recalled, he "abominated papers of every description." The phonetic spelling and careless punctuation that marked the letters of his youth remained in those few notes he chose to write in his own hand. Usually he dictated to Wardell, who smoothed out the sentences.35 More significant was the change in his speaking. Among cronies and underperforming subordinates, he still would spout profanity with fluency and enthusiasm; but he had learned to speak on something like equal terms with men of refinement. This was reflected in Vanderbilt"s comments at a grand munic.i.p.al dinner given to him in Southampton, which were articulate, if brief. After a very few remarks, he said, "Were I able to express the gratification we have experienced in pa.s.sing through the country and your town... I am fearful you would construe it into an attempt to make a speech." Then he sat down. More significant was the change in his speaking. Among cronies and underperforming subordinates, he still would spout profanity with fluency and enthusiasm; but he had learned to speak on something like equal terms with men of refinement. This was reflected in Vanderbilt"s comments at a grand munic.i.p.al dinner given to him in Southampton, which were articulate, if brief. After a very few remarks, he said, "Were I able to express the gratification we have experienced in pa.s.sing through the country and your town... I am fearful you would construe it into an attempt to make a speech." Then he sat down.
Perhaps self-conscious of his lack of education, he avoided public speaking-a significant fact in that great era of oratory, when men and women pa.s.sed the hours listening to long, elaborate speeches from politicians and ministers, lecturers and poets. But his recorded remarks show that he was capable of keeping his errant grammar under control in conversation. A more likely explanation for his reticence was given by those who knew him best: that he detested circuitousness, viewed loquacity as a kind of vanity and distrusted the rhetorical flourishes expected in this culture of the word upon word. When dictating letters, for example, he expected Wardell to preserve the brevity, the concentrated force, of his language. As Vanderbilt said in his terse Southampton toast, "He had been accustomed, all his life, to go direct to a point."36 When he plumped back into his seat at that dinner, another of his party rose: Horace Clark. At the Commodore"s request, the ambitious lawyer gave precisely the sort of speech expected on this occasion, the kind that Vanderbilt loathed, larded with such pa.s.sages as, "a few days of unalloyed pleasure, pa.s.sed in contemplation of the Great Creator in his broadest and most glorious field-a few nights of calm repose, undisturbed by danger or fear-and lo! your magnificent sh.o.r.es burst upon our view." Now that Vanderbilt was most emphatically a public man, he needed someone like Clark. He had thought he had found such an ally in Joseph White; but White"s treachery had taught him to look within his own circle for someone more trustworthy.
Clark wanted to be more than Vanderbilt"s mouthpiece, but others stood in his way. His most serious rival was Daniel Allen, who had shown himself to be a quiet, shrewd businessman more like the Commodore himself. But Allen"s split with his father-in-law over the steamship sale to Accessory Transit continued to fester. So he and his wife, Ethelinda, decided to spend a year in Europe. They had a son and a brother-in-law currently residing on the continent, and perhaps they hoped the time abroad might improve Ethelinda"s health. "Mrs. Allen came on board the yacht from a sick bed," Rev. Choules wrote, "and in a condition of extreme debility." The months at sea seem to have helped immensely, and she and her husband said their good-byes at Gibraltar.37 More ominous for Clark"s future (though there is no sign that he thought of matters this way) was the thaw in Vanderbilt"s relationship with Billy. The two had never spent so much time together; more than that, they socialized in a holiday setting overseen by Billy"s eternally patient and kindhearted mother. Overshadowed by her domineering husband, Sophia"s personality rarely flowers in the historical record, though a few suggestive comments come from Rev. Choules (however p.r.o.ne he may have been to praising everything and everyone, apart from the pope, whom he reviled). "Every day, everyone on board was made to see and feel the excellent qualities" of Sophia Vanderbilt, Choules wrote, "whose uniform amiable spirit was the regulator of the circle."38 Amiable patience marked William"s manner as well. A story would later circulate that depicted father and son on the North Star"s North Star"s deck as it churned toward home, both of them puffing on cigars. Vanderbilt c.o.c.ked an eye at Billy and said, "I wish you wouldn"t smoke, Billy; it"s a bad habit. I"ll give you $10,000 to stop it." The young man pulled the cigar out of his mouth and said, "You needn"t hire me to give it up. Your wish is enough. I will never smoke again." With a flick of his wrist, Billy tossed the cigar over the rail and into the waves below deck as it churned toward home, both of them puffing on cigars. Vanderbilt c.o.c.ked an eye at Billy and said, "I wish you wouldn"t smoke, Billy; it"s a bad habit. I"ll give you $10,000 to stop it." The young man pulled the cigar out of his mouth and said, "You needn"t hire me to give it up. Your wish is enough. I will never smoke again." With a flick of his wrist, Billy tossed the cigar over the rail and into the waves below39 The tale is utterly apocryphal, but it survived because it reflected two truths: Cornelius"s relentless testing of his son, and William"s steady display of loyalty-a dutifulness that slowly affected his father. The tale is utterly apocryphal, but it survived because it reflected two truths: Cornelius"s relentless testing of his son, and William"s steady display of loyalty-a dutifulness that slowly affected his father.
Onward the North Star North Star sailed toward New York, cutting through clouds of flying fish, dredging through green Sarga.s.so Sea islands of seaweed, and steaming into view of Staten Island. Back through the Narrows it went-firing another salute as it pa.s.sed the home of Vanderbilt"s mother-up to the Allaire Works, where the journey had begun. "On the dock were kind friends and beloved relatives," Choules wrote, "and I almost felt that the entire four months of absence was but a dream! But I soon learned a painful fact... that the sweetest joys of life are dashed with bitter waters." sailed toward New York, cutting through clouds of flying fish, dredging through green Sarga.s.so Sea islands of seaweed, and steaming into view of Staten Island. Back through the Narrows it went-firing another salute as it pa.s.sed the home of Vanderbilt"s mother-up to the Allaire Works, where the journey had begun. "On the dock were kind friends and beloved relatives," Choules wrote, "and I almost felt that the entire four months of absence was but a dream! But I soon learned a painful fact... that the sweetest joys of life are dashed with bitter waters."40 FOR THE FIRST SUMMER IN TWO DECADES, Cornelius Vanderbilt did not go to Saratoga Springs. He was, of course, on the far side of the Atlantic, so Saratoga went on without him. "Senators and members of Congress are abundant," the New York Times New York Times reported on August 12. Other notables included George Law; Thurlow Weed, the Albany newspaper editor and t.i.tan of the Whig Party; Edward K. Collins, head of a federally subsidized transatlantic steamship line; and Charles Morgan. reported on August 12. Other notables included George Law; Thurlow Weed, the Albany newspaper editor and t.i.tan of the Whig Party; Edward K. Collins, head of a federally subsidized transatlantic steamship line; and Charles Morgan.41 In the summer of 1853, it was Morgan, not the Commodore, who went each morning to the little temple erected over the Congress Spring, inside the hollow square of the Congress Hall hotel, where a boy lowered a staff to dip tumblers full of mineral water, three at a time. It was Morgan who played hands of whist with other Wall Street warriors, or sat in the evening in the colonnade of the Congress or the United States Hotel, smiling at the pa.s.sing girl in white muslin and a pink sash, daringly wearing no bonnet, who made her way to a fashionable ball or a more casual "hop."42 It was Morgan who took a carriage up to the lake to eat a dinner of wild game at the Lake House restaurant, famous for its crispy fried potatoes (or potato chips, as they would come to be known), a wildly popular dish invented by "Eliza, the cook," in the 1840s. It was Morgan who took a carriage up to the lake to eat a dinner of wild game at the Lake House restaurant, famous for its crispy fried potatoes (or potato chips, as they would come to be known), a wildly popular dish invented by "Eliza, the cook," in the 1840s.*
By September 23, Morgan was back in New York, where he could not have missed Vanderbilt"s return in the North Star North Star. Every newspaper published the news, as if it were a matter of national import to announce (as the headline in the Times Times read), "Com. Vanderbilt"s Pleasure Party at Home Again." The read), "Com. Vanderbilt"s Pleasure Party at Home Again." The New York Herald New York Herald went further, notifying the Commodore that during his absence the Accessory Transit Company had fired him as agent and kept his money. It reprinted a letter from the corporation that had run on July 29. "It is quite true that since the departure of Mr. Vanderbilt the company have not paid him the twenty percent on the gross receipts of the transit route," the company had stated, "for the plain and simple reason that, in their belief, he is largely indebted to the company, it having found it impossible to obtain a statement of the accounts of the agency during the time he had acted as agent for the steamers of the company." The went further, notifying the Commodore that during his absence the Accessory Transit Company had fired him as agent and kept his money. It reprinted a letter from the corporation that had run on July 29. "It is quite true that since the departure of Mr. Vanderbilt the company have not paid him the twenty percent on the gross receipts of the transit route," the company had stated, "for the plain and simple reason that, in their belief, he is largely indebted to the company, it having found it impossible to obtain a statement of the accounts of the agency during the time he had acted as agent for the steamers of the company." The Herald Herald added, "As soon as Commodore Vanderbilt gets fairly located again among us, it is expected he will furnish some exculpatory reply" added, "As soon as Commodore Vanderbilt gets fairly located again among us, it is expected he will furnish some exculpatory reply"43 Vanderbilt"s discovery of this treachery provided the context for what is said to be one of the most famous letters in the history of American business: "Gentlemen: You have undertaken to cheat me. I won"t sue, for the law is too slow. I"ll ruin you. Yours truly, Cornelius Vanderbilt." This terse, belligerent note is pure Vanderbilt. It is also mythology. It first appeared decades later, in Vanderbilt"s obituary in the Times Times, and its validity is dubious at best. He never wrote "Yours truly," but usually he signed, "Your obedient servant." And it never would have occurred to him to give up legal redress. He had been suing his opponents since 1816; he knew that, even when the courts did not give satisfaction, legal action gave him leverage in negotiations.44 But reply he did. As soon as he had wobbled on his sea legs into his office, he ordered Lambert Wardell to pull out pen and paper; he wanted to dictate a letter to James Gordon Bennett, editor of the Herald Herald. "The statement made in the name of the company," he wrote, "calls for a few words of explanation. To say nothing of the cowardice which, in my absence in a foreign country, dictated the calumnious statement referred to, it is none the less unfortunate that it was utterly false."
Cowardice and mendacity-the two cardinal sins in Vanderbilt"s business code, and the two salient traits of Joseph White-drove him into a fury. He did not owe the Transit Company, he said; rather, it owed him him some $36,000 for property (mostly coal and coal hulks) that he had sold along with the steamships, an amount that was to have been paid out of the first earnings of the ships. "My object in accepting the agency of the steamships... was chiefly to enable me to secure the amount of the company"s unpaid indebtedness to me," he explained. "These earnings should come directly into my hands. I need not say that I would not have trusted the company for so large a sum of money upon any other terms." His man in New York, Moses Maynard, had made the books freely available for inspection at any time. And, far from decrying lawsuits, he concluded with this warning: "My rights against the company will be determined in due time by the judgment of the legal tribunals." some $36,000 for property (mostly coal and coal hulks) that he had sold along with the steamships, an amount that was to have been paid out of the first earnings of the ships. "My object in accepting the agency of the steamships... was chiefly to enable me to secure the amount of the company"s unpaid indebtedness to me," he explained. "These earnings should come directly into my hands. I need not say that I would not have trusted the company for so large a sum of money upon any other terms." His man in New York, Moses Maynard, had made the books freely available for inspection at any time. And, far from decrying lawsuits, he concluded with this warning: "My rights against the company will be determined in due time by the judgment of the legal tribunals."45 On September 29, the day after the Herald Herald published Vanderbilt"s angry letter, the Commodore and Charles Morgan met to discuss their conflict. Where they spoke is unknown, though Morgan"s office was at 2 Bowling Green, only a few doors from Vanderbilt"s. The Commodore proposed to refer the dispute to arbitration. Morgan seems to have thought well of the idea, but he declined to make a commitment, and the meeting broke up without any settlement. published Vanderbilt"s angry letter, the Commodore and Charles Morgan met to discuss their conflict. Where they spoke is unknown, though Morgan"s office was at 2 Bowling Green, only a few doors from Vanderbilt"s. The Commodore proposed to refer the dispute to arbitration. Morgan seems to have thought well of the idea, but he declined to make a commitment, and the meeting broke up without any settlement.
A split seems to have formed in Accessory Transit over how to proceed. On October 27, the Herald Herald reported that it had agreed to arbitration; on the next day, the company refused, making petty excuses about the state of the accounts Vanderbilt had rendered. Indeed, it taunted him, in what sounds very much like the voice of Joseph White. "The company are desirous he should commence proceedings against them at once," said the official statement, "and are afraid he will do nothing but threaten." Vanderbilt"s lawsuit, postponed to allow time for negotiations, would proceed. reported that it had agreed to arbitration; on the next day, the company refused, making petty excuses about the state of the accounts Vanderbilt had rendered. Indeed, it taunted him, in what sounds very much like the voice of Joseph White. "The company are desirous he should commence proceedings against them at once," said the official statement, "and are afraid he will do nothing but threaten." Vanderbilt"s lawsuit, postponed to allow time for negotiations, would proceed.46 THE BATTLE SEEMED TO energize Vanderbilt, for he simultaneously embarked on a series of breathtakingly huge financial transactions. First, his friend Robert Schuyler-now president of the New York & New Haven, the Illinois Central, and other railroads-asked for help. He had overextended himself in his vast stock operations, and the energize Vanderbilt, for he simultaneously embarked on a series of breathtakingly huge financial transactions. First, his friend Robert Schuyler-now president of the New York & New Haven, the Illinois Central, and other railroads-asked for help. He had overextended himself in his vast stock operations, and the Independence Independence, the ship he and his brother George had purchased from Vanderbilt, had sunk in the Pacific. He needed money, a lot of money; fortunately, he could offer thousands of railroad shares as collateral. Vanderbilt took them, loaning Schuyler $600,000 in October to see him through his difficulties. This was a staggering figure: if a merchant"s entire estate amounted to that sum, he would be praised as extremely wealthy by the Mercantile Agency47 Next came a fresh campaign on Wall Street led by Nelson Robinson-who, it appears, could not bear to remain in retirement as long as he owned twelve thousand Erie shares, waiting to be bulled. In mid-October, Robinson won reelection to the Erie Railroad"s board of directors, and took over as treasurer; he was joined by Daniel Drew, who was new to the board. The two organized a "clique" of investors to run up the price of Erie. Vanderbilt agreed to cooperate, though he demanded a bonus in the form of a discount on the stock. He purchased four thousand shares at 70 each, 2 below the market price. (How Robinson and Drew arranged the discount is unclear.) "The removal of so much stock, even temporarily from the market, was calculated to improve it [the price]," the New York Evening Post New York Evening Post reported. reported.
With so many stock certificates sitting in Vanderbilt"s office rather than circulating among brokers, Erie"s share price immediately rose. Robinson made the most of it as he worked both the curb and the trading floor on Wall Street. "His name & influence put up the price," the Mercantile Agency reported. "It went as high as 92 in April [1854] & he sold out." Robinson made as much as $100,000 in this single operation. Vanderbilt garnered perhaps $48,000 in profit (less brokers" commissions), in a lucrative beginning to a long and ultimately tragic relationship with Erie.48 Success in this operation had been far from certain, but Vanderbilt "was a bold, fearless man," Wardell later explained, "very much a speculator, understanding all risks and willing to take them."49 As Vanderbilt"s notoriety as a speculator rose, so would the public"s ambivalence toward him. As Vanderbilt"s notoriety as a speculator rose, so would the public"s ambivalence toward him.
Ambivalence, but not simple loathing: the Commodore simultaneously remained the archetype of the economic hero, the productive, practical man of business, precisely the sort popularly depicted as the opposite of the speculator. Indeed, the key to understanding Vanderbilt is that he saw no distinction between the roles defined by moralists and philosophers. He freely played the compet.i.tor and monopolist, destroyer and creator, speculator and entrepreneur, according to where his interests led him. The real conundrum lies in how he saw himself. His public p.r.o.nouncements reflected Jacksonian laissez-faire values, as he denounced monopolies and touted himself as a compet.i.tor. Did he detect a paradox, then, when he sold out to a monopoly or sought his own subsidies? Most likely no. Compet.i.tion had arisen in America conjoined with customs and mechanisms to control it. Vanderbilt saw "opposition" as a means to an end-war to achieve a more advantageous peace. On a personal level, he was acutely aware that he had won all that he possessed by his own prowess. And whatever he won in battle, he was ready to defend in battle.
VANDERBILT"S COMBINATION of entrepreneurship and stock market gamesmanship also appeared in his elaborate plot to take revenge on Morgan and White. The first phase involved an attempt to drive down the Accessory Transit Company"s share price. He faced long odds. In December, Morgan fed information to the of entrepreneurship and stock market gamesmanship also appeared in his elaborate plot to take revenge on Morgan and White. The first phase involved an attempt to drive down the Accessory Transit Company"s share price. He faced long odds. In December, Morgan fed information to the New York Herald New York Herald that won him the support of its influential financial column (despite Vanderbilt"s protest that the numbers leaked to the paper were "calculated to deceive"). Rumors of the company"s rich profits and bright prospects sent its stock price up to 27. that won him the support of its influential financial column (despite Vanderbilt"s protest that the numbers leaked to the paper were "calculated to deceive"). Rumors of the company"s rich profits and bright prospects sent its stock price up to 27.50 Seemingly in defiance of reality, Vanderbilt deployed a platoon of brokers on the stock exchange to sell Accessory Transit short, starting on January 5. "The bears made a dead set against it," the Herald Herald reported. Vanderbilt shorted five thousand shares-that is, sold five thousand shares that he did not own-at 25, on contracts that gave him up to twelve months to deliver the certificates. He gambled that the price would go down in the interim, so he could buy the shares for less, thus making a profit when he delivered them. "This looks like a most determined opposition," the reported. Vanderbilt shorted five thousand shares-that is, sold five thousand shares that he did not own-at 25, on contracts that gave him up to twelve months to deliver the certificates. He gambled that the price would go down in the interim, so he could buy the shares for less, thus making a profit when he delivered them. "This looks like a most determined opposition," the Herald Herald noted. Morgan started buying to keep the price up, making for a direct battle between the two t.i.tans. noted. Morgan started buying to keep the price up, making for a direct battle between the two t.i.tans.
The next day the New York Times New York Times reported, "The contest of reported, "The contest of Bull Bull and and Bear Bear opened... on Nicaragua Transit stock, [and] was followed up with considerable spirit by the buyers for the rise. The large seller yesterday it is now confidently a.s.serted is Mr. Cornelius Vanderbilt, and the buyer Mr. Charles Morgan, the President and managing man of the Company; both old heads on the Stock Exchange, a