The largest fortunes and will history. This recorded this was recorded in 2009, it is about an hour and two minutes. Cominghanks for everyone this evening. Placerst tycoon takes its this year as the biography of record. One of the greatest and most neglected figures and American Business history. Cornelius vanderbilts been shipping route roads and finance spanned an incredible epic indie industrial in the Industrial Development of this industry. Rights, youhousand 19thcentury businessman it will vanderbilt and his impact on american history. , and unprovoked to be so fundamental over a. So formative for so long. The commodore lived to be 82. From the very beginnings of steamboat travel on the hudson river to the Seminal Supreme Court case. The federaled governments right to establish. Tate congress transatlantic travel, the California Gold rush, the growth of the United States into a continental nation. The start of travel across the nation and the planting of the seed that was to become the panama canal. The crushing of the victorious alabaster William Walker. The destruction of the ironclad merrimack and the safeguarding of the gold shipments was quite a seminal part in winning the civil war. Also, the birth of the modern corporation. Greatnsolidation of the new York Airlines and the central and hudson river road. The growth of new york city into the first city of america and of trade. First hub anderbilt paid played great role in all of this. These were the most basic beliefs about equality. He started in business as the very enemy of the jacksonian ideal. Only akingmen desired level playing field. He ended it as a symbol of equality and the monopoly of the gilded age. He was instrumental in a quitting americans with the normalized business entity. Americans worked almost exclusively as farmers and small businessmen and what money they saw was mostly solid coin. Corporations were a rarity. By the time vanderbilt died, had been introduced to paper money. Even if they were still uneasy about it. Life served as an ethic. He started off as a teenage farm boy. By the time of his death he would be the second richest man in america with a fortune of 14 million. He was somehow able to liquidate if he were able to liquidate his estate somehow, he would receive one of every nine dollars. Had been able to liquidate all of his estates, he would have been entitled to one everyone hundred 38. Didnt come about this every 138. He was raising his steamboats of the hudson and defended himself and countless lawsuits. He lost endless coups on wall street and corporate boardrooms, whipping his price hotter in the regions. S he was a hard man who was hard on those around him, including seemed to have driven including a wife who he seemed to have driven to a sanitarium. The daughters who snubbed his second wife and bitterly contested his will. The son who suffered a breakdown. More sons who lived tragic lives and never taking his approval. He was also a man capable of love. Great works of charity in the last years of his life. It is both a great personal and public story. Tj spouse has done a magnificent job of guiding us through a life crowded with events. There was a colorful supporting cast. Build with names such as james banker, fernando wood, simon chase, daniel trip, big jim pac, emily thorne, curtis with tori a woodhall victoria woodhall. Greeley, a ok, augustus and myjohn preen, passing these right . In short, it is a terrific read. James pardon once wrote of the Young Thomas Jefferson that he could calculate and eclipse, survey and estate, tiein state, survey in the tie and artery. Cornelius bender that could build a ship, simply over the ocean, run a shipping line, consolidate a railroad, brady corporation, while be a president. He also could raise an army all before lunchtime. Iss juxtaposition of skills a great deal about what america became in vanderbilts time. Also, in view of what has going on in the countrys economy and over wall street over the past few months. Viewing general motorss amended plan where it revised the miles goingllon that cars were to get. Anyone who had seen this, they see the bonus is going bankrupt. How did we go from that to this . Thank you for having me here. T. J. i was a fellow at the coleman center. It was an incredible experience. Without them, my book would not have been possible. I just want to make that very clear. Transitionence, that is visible during vanderbilts life. Bender built himself was most vanderbilt himself was both a pioneer and was part of an older business world. Mold. Part of the medici by creating the hudson river thesead, it pioneered giant corporations we were talking about. One of the four primary railroads, the Pennsylvania Railroad is very interesting managers represent the modern model of management. Were andrewrs carnegies mentors. J Edgar Thompson for instance. Vanderbilt purchased a controlling share in the stock of the corporation, moved into management and then what he would do is he would not take a salary. He would only take remunerations or dividends of the stock. This is a moderately moved away from. Now we expect stocks and shares to grow in value. Time, it was the primary thing investors look for. Had to make his railroads pay. He had to make it possible year in and year out to get money. Paidennsylvania railroad dividends pretty successfully. Investors werent so concerned with the stocks going up or down. Just making sure that it was paid. Prices tend to fluctuate. You didnt see steady, ever increasing growth. That would have seemed fishy to people. Railroad hadnia these managers that were not a journey shout orders majority shareholders. Thomas a scott was famous in one case for being so politically influential that he got the annsylvania governor to sign contract 30 minutes after it was produced. They would funnel their railroads business through these corporations. They would funnel money out of the company. They ran it fairly well up to a point. When the panic of 1873 head, shareholders were looking into what they were doing. Corporations were ran like it was private personal property. How do we get here . You see the origins. The owners and shareholders were not really paying attention. That creates an incentive for the agents who are running the country to engage in stuff on the side. Incentive, it doesnt guarantee malfeasance. You see that origin. Seems to have always been hand on. Handson. He actually testify before a state legislative committee. Said, are you a practical manager . Are you out inspecting locomotives . He said no, i am not like that. But that was not quite true, people felt his wrath. When he got to the railroad years, he relinquished operational control. It always seemed to be able to outcompete other lines. Whether it was steamships or other railroads. Customers can always be learned away. T. J. it is not a very sexy subject. Those are trade to see in managers. A goodcarnegie is example, he cut costs. And a built once said that he could vanderbilt said he could not run a business like that. Book, whennd of the you have these populist movements from out west, they have a huge complaint from the railroad which is there is this preferential and secret pricing system. Moving some peoples goods for free. Vanderbilt says fine, we would be happy to compete on an equal basis. What they are saying is they are complaining on that special legislation like Thomas A Scott would pass. s response to that complaint was as long as the laws were the same for everybody, i am on board. As long as the rules are the same, i can beat anyone. Kevin it was a very rough and tumble business time. You get the sense he was something of an honorable man in a sense. He had his own sense of honor. That is a really interesting trait of his. Peers had this lovehate is the wrong way to put it, this sort of respec thate relationship with him. One of the reasons that the book is longer than it might have been is because i try to write more of a business story. More than a business story. It was about the culture in the 19th century. Very first years in steamboats, i found these olders from his own these families. They were cutting prices and competition, this is awful. Individualistic, competitive economy where it was no holds barred. There was this major cultural shift. Business was not just business. It was changing american culture. The idea of individualism and competitiveness was a huge shift. Vanderbilt was very much on the forefront. There was a new code of honor that was emerging. Sportsmanship. D we are all gentlemen, lets all caps is with each other cuts deals with each other, it was more of a fair fight code. He would stick to that. He would say that he found letters in the library. Know my word is as good as my bond and it was important to him to develop that reputation. Was there might have been putting your ferryboat across the peer. Or burning down the other guys stuff. Kevin there was that in same race between henry clay and that of the steam ship down the hudson. There was a wild race. They were throwing people off at the stops. At the end of this, the henry clay steamboat explodes. This was basic commuter transportation at the time. This was like a spectator sport. It really matter to people that they were on the fastest boat. There were two sets of passengers, the ones that were very excited about the racing and the ones that insisted on being told in a boat behind. Reworked. Of that was that was ok. All of these people ended up forecting the commodore finding him to the death on steamships and rail lines. Then you get down to jay gold jimthey jump this big fisk. That is interesting, hugo from this early era of veryboats , it was a competition oriented business. A small group of people could get together. You could move it between markets. If you are competing for a while, you could take it somewhere else. One of my favorite examples of is in 1838, the staten erry boater ordered his captain to ram another ferry. The passengers on the other ferry, when they got to staten island, they nearly murdered the captain. Then you get to the railroad era. What is different about railroads is they are fixed pieces of infrastructure. You can have a price war. But in the end, you have to come to some sort of terms because the other guy is still dead. Due to the nature of railroads, because they are so capital intensive, even if you had no trades, yourll, no fixed expenses of maintaining and having a railroad were very high. A railroad that was in bad shape would cut prices. Losing money,ere it was better than losing more money. Railroads were stuck. Takes part in something that is going on before his time, gentlemens agreements. Cartels, they had elaborate cartels where they had commissions, they would hire a commissioner who could fire people from individual railroads who were undercutting prices. Vanderbilt time, himself was rising in social stature. Business thatn a is inclined toward gentlemanly agreements. He himself is becoming more gentlemanly. Life toward the end of his life, there was a curious parallel in business. Jay gould and jim fisk come along and they are talking about secret deals with the press. Theyre trying to insult and demanded commodore. He became obsessed with them. It became this famous rivalry in the American Press between these businessmen. They get it to impress and start putting stock certificates without anything behind them. They avoided actual jail time somehow. Thatere were strict laws made you aware of how many in aou can have an company. People felt that a share of stock represented 100 of extra capital. When you increase the number of newes without building infrastructure, it was seen as the most intellectual figures as broad. He was trying to corner the market in the shares. It was a very famous episode where vanderbilt got a judge to issue arrest warrants. Ofre were officers at one the leading and largest corporations in america. They set up shop in for taylor for taylor over it fort taylor over in new jersey. Jayto settle the matter, t. J. to new jersey with a suitcase of cash. Finally, vanderbilt managed to pay back what he lost. It was an incredible episode. Kevin he never try to contact stances in d seances. The was the high point of civilization in america. People were going to mediums all the time to contact the dead. I dont think vanderbilt based any decisions on these. I believe in spiritualism. I dont think mediums were contacting the dead. Vanderbilt clued into that too. There was a great incident that you were referring to. So fisk comes up and vanderbilt asked him about stock. His images made no sense at all. Said, fine, we will see who is right. It was a hilarious incident. Rivalry, there is a quote that i never found a good source for. It was one of my favorites. He supposedly said it never skunk. Pickick a that was his attitude toward jay gould. End, in the most important battles, he either held his own or campoue out better. Jay gould managed to embarrass him. In the great war, jay gould and jim fisk radically undercut him. Central the new York Railroad went from 150 dollars per cattle. They were shipping it over the new york central for nothing and when they did it, they made a loud announcement to the press. It was actually a trivial dispute. It was getting under his skin. Something we talked about before in contrast, other businessmen would have vicious spies. Fights. Of shows the whole span vanderbilts life. Supposedly, they were ordering stock and driving literal stock into new york. He would beat it lots of salt and water at the collect pond. That is where the court houses are now. He would drive the cattle down there. They would pick up water and go on. That became the five points. Career, he wasis fighting these wars over transporting cattle by the thousands across the country. To talk about another skunk for a moment. Called aalker who was filibuster. Somebody who would go down and try to take over a country. There was a rash of these. Americans decided to go down with a handful of mercenaries. They would start fighting in a civil war and then tried to take it over. Things considered a great by southern and confederate leaning individuals. Especially in the case of cuba. The spanishll of d the starba remaine of the spanish overseen possessions. There was a large human population in new york. Is running about this. Writing about this. Walker ended up landing in San Francisco. He made to mexico unsuccessfully. Then he got a contract to fight for one side in the nicaraguan civil war. He would fight for one sidethend inaragua is almost always the petrol civil war. Perpetual civil war. Started, hed rush abruptly got out of that. Main route of congress and steamship migration was crossing panama. Vanderbilt tried to build another one. He sold out, went on a grantor of europe, engaged in other affairs. At the very moment he was doing that, walker sailed off to nicaragua. He was a terrible general. Ordered frontal attacks. T. J. this reflected the filibuster attitude. We are americans. One of us was 10 of them. Fortunately, he carries out one maneuver by luck. He manages to win by luck. He ends up being the strawman and cant even speak spanish. Nicaraguastrawman in icaragua. Man in n here, thers i found here in thehem, manuscript department, most nderbiltsd that va rivals within the situation in fact, a friend of walkers went to the San Francisco look, your said, company will be destroyed. I think he is going to give the resume. Rights to me. There is a Hilarious Exchange where garrison said that i can do anything. This whole story plays out with these political, corrupt political figures. The selfinterest of characters that were woven through the 1850s. It was like a part of american culture. This, he gives the right. Tries to destroy this company. He unsuccessfully tried to get the u. S. Government and the british to intervene. They dont want to help for various reasons. He had these napoleonic visions that he would conquer all of latin america. Would carry out these foreign policies. Guy he worked in nicaragua. He was sent off to costa rica with a creative goal. He led a commando raid. Steamboats and cut them off from his reinforcements. It is something out of a conrad neville. Novel. Owed him money from something. They are refusing to hand over the ships. T. J. thousands of people would have lived. Scott i own the company. The british had a fleet there. It would have cut everything off almost at the beginning. The local guy says i am of 17 thousand dollars. Until i am paid, i am not cooperating. Later, when they win the war and vanderbilt sends out a guy to chase him with the steamboat and says i will shoot you unless you one littlere is unknown character. Because of his personal debt aat hasnt been paid, it and change in the history of 45 countries. Countries five five countries. I do know that one of the consequences of this episode is that what vanderbilt found when he tried to get business going again he walked up to the line that allowed him to carry passengers across nicaragua. Accept northnt americans coming in. In the midst of this whole war, he ends up burning down most of this. He rode to the country. He was truly an international criminal. He was the dr. Evil of his day. This was made into a very bad and harris, ed harris movie. Another part of vanderbilt at work. He went out to fight with the merrimack. That was the first ironclad. This really threatened the entire civil war plant of the union. That was to blockade the south. All of the sudden, the south has built this ironclad ship. It sinks to American Warships immediately. It looks and vulnerable. Invulnerable. This goes to the conflicts. Never readbody who adam smith but he firmly believed in the invisible hand. He believes that we make progress in society through everybody chasing their own interest. He believed it was his own duty as a citizen to fight for them. He thought that is what everybody should do. One of the exceptions of that is that he was deeply patriotic. He had three sons. He named them after his heroes, torch washington george washington. Henderson and cornelius vanderbilt. The secretary of the navy was a little prickly. They said you will never have this expensive ship. Vanderbilt ended up being forced against his will to lease it for very large sums to the war department. A complicated story and we will have the premarket people all shaking their heads. It would have been a crazy result. Out. They came streaming the standard version is end of story. At that point, there was only one ship that could handle the merrimack. It had seen similar mechanical breakdowns. The secretary of war telegraphed. Anderbilt lincoln said what can you do . He said probably what will happen is that they wont risk the merrimack against it. That is actually what ended up