Of steam to the time together of the north American Continent in rail. Writes, nos businessman equal vanderbilt in his impact on american history. None proved to be so influential periodfundamental over a so formative for so long. The common or lived to be 82 and played a key role in so many events in his to mulch was life. From the very beginnings of steamboat travel on the hudson river to the Seminal Supreme Court case. Gibbons the audition v o gden. , theransatlantic travel California Gold rush, the growth of the u. S. 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 notorious american filibuster William Walker in his attempt to abscond with the country of nicaragua. The destruction of the ironclad merrimack and the safeguarding of the gold shipments was quite a seminal part in winning the civil war. The stock and regulations of the railroad and the birth of the modern corporation. The consolidation of the great new york rail lines. The growth of new york city into the first city in america and a major world hub of finance and trade complete with its first Grand Central station. Vanderbilt played a major part in all of these events. As stiles writes, the comet or possibly left its mark on americas most basic beliefs. He started in business as the very epitome of the jacksonian ideal. The workingmen desired only a level playing field. He ended it as a symbol of inequality and monopoly in the gilded age. What made americans question for the first time the dangers. He was interim until in a quaint and americans with the idea of modern corp. Nations corporations. When vanderbilt was a young man, americans worked on most exclusively as farmers and small businessmen. What money they saw was mostly solid coin. Corporations were a rarity. They were mostly done to public project such as roads and canals before and disbanded. By the time vanderbilt died americans had been introduced to , paper money. Stocks, bonds and even more abstract representations. Even if they were still uneasy about it. In getting more uneasy all the time. Vanderbilts own life served as an ethic. They started out as a teenage farmboy so sailing home a ferry across new york harbor. By the time of his death he was estimated to be the second richest man in america with a fortune of 100 million. Stiles writes that if vanderbilt had somehow been able to liquidate his entire estate, he wouldve received one out of every nine dollars in circulation. , worth 57 billion the height of his wealth had been able to liquidate all of his estates, he wouldve been entitled to one out of every 138 in circulation. It not come by this money easily. Vanderbilt was a tough, capable and stunningly intelligent man and his life one is one of almost constant competition. He fought in every arena available. From fistfights of the docs to filing in defending himself in countless lawsuits. He launched endless coups on wall street and corporate boardrooms, whipping his prize in the upper regions. On that on atent least two occasions left him pitched out headfirst on the road. He was a hard man who was hard on those around him, including a wife he seemed to have driven to a sanitarium. Sonsinlaw sue had to consummate prove their worth. The daughters who snubbed his second wife and bitterly contested his will. The son who suffered a nervous breakdown. And two more sons who lived tragic lives and never taking did gain his approval. He was also a man capable of love. Of great works of charity in the last years of his life. Even of sentiment. As witnessed by his repeated attempts to contact old friends and loved ones. It is both a great personal and public story. Does a magnificent job of guiding us through a life of crowded events. There was a colorful supporting cast. Full of such names as james banker, fernando wood, simon chase, big jim fisk, emily thorne. , augustus shell. To name just a few. In short, it is a terrific read. James pardon once wrote of the Young Thomas Jefferson that he could calculate any clips, tie andd estate artery. In the same vein, one could say Cornelius Vanderbilt could design a ship, sale it over the ocean run a shipping line, consolidate a railroad, brady short a stock. Build a rail depot, found a university and raise an army. And all before lunchtime. This juxtaposition of skills is a great deal about what america became in vanderbilts time. I think also, in view of what has gone on in the countrys economy and over wall street over the past few months. Viewing general motorss amended plan where it revised the miles per gallon that cars were going to get. Anyone would seem that in comparing those executives for the bonus and going bankrupt. They would ask a henry ford or alias vanderbilt, what happened. How did we go from that to this . Thank you for having me here. I was a fellow at the coleman center. It was an incredible experience. Without them, my book would not have been possible. Thanks to the staff, including the manuscript department. I just want to make that very important thank you. That difference, that transition is visible during vanderbilts life. One thing i point out that vanderbilt himself was both a pioneer and was part of an older business world. He was the merchant prince of the medici mold. By creating the hudson river railroad, it pioneered these giant corporations we were talking about. His primary rivals was the Pennsylvania Railroad. One of the four primary railroads in the country. The Pennsylvania Railroad is very interesting because its managers represent the modern model of management. They managers were Andrew Carnegies mentors. Vanderbilt was someone who 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 through dividends on the stock. Weve moved away from this. We expect stocks and shares to grow in value. At that time, it was the primary thing investors look for. A steady return every year. Vanderbilt had to make his railroads pay. He had to make it possible year profitable year in and year out. By contrast the pennsylvania , railroad paid dividends pretty successfully. Up to a point. This is mostly a stocks worked at the time and you mostly pay dividends. Investors were concerned about the stock going up and down. Prices tend to fluctuate. You didnt see steady, everincreasing growth. That wouldve been fishy to people. The Pennsylvania Railroad had these managers that were not a majority shareholders. They did stuff off of the side. Thomas a scott was famous in one case for being so politically influential that he got the pennsylvania governor to sign a bill 34 minutes after it was introduced. They would funnel their railroads business through these corporations. In many ways they would funnel , money out of the company. They ran it fairly well up to a point. When the panic of 1873 hit, the railroad had to stop hang dividends and the shareholders were looking into what they were doing. Vanderbilts corporations were ran like it was private personal property. How do we get here . You see the origins. The separation of management from ownership and 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. And not to be looking over towards the longterm health of the company. It is an incentive, it doesnt guarantee malfeasance. You see that origin. Vanderbilt seems to have always been hand on. I think that is true. In the end of his life, during his when he was a railroad chief, he testified before a state legislative committee. They said, are you a practical manager . Re someone setting timetables. He said no, i am not like that. Thats not entirely true. People would feel his wrath. Part, when he got to the railroad deals, he relinquished operational control. Always seemed, it to be able to outcompete other lines. Whether it was steamships or other railroads. Fore was a certain genius the business and how customers could be lured away. T. J. it is not a very sexy subject. That is a consistent trade you see and successful managers. The most successful robber barons. Andrew carnegie is a good example, they cut costs. They were more successful in the rivals. Vanderbilt said he could not run a steamship or railroad 20 or 30 lower. In the end of the book, when you have these populist the start of the grange and these populist movements out west with a huge complaint from with their secret pricing system. Fine, well be happy to compete on equal basis. What they are saying is they here no problem with them in that. What they are saying is they are complaining on that special legislation like Thomas A Scott would pass. The railroads and get special laws passed. Vanderbilts 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. With few defined ethics. You get the sense he was something of an honorable man in a sense. He had his own sense of honor. T. J. that is a really interesting trait of his. His business peers had this lovehate is the wrong way to put it, this sort of respecthate relationship with him. One of the reasons that the book is longer than it might have been is because i try to write more than a business story. It was about the culture in the the making of american culture. You mentioned the culture of deference that was held over in the 19th century. In vanderbilts very first years in steamboats, i found these letters from these old families. Saying they are undercutting prices, have you heard of anything so scandalous . The idea of an individualistic, competitive economy word was no holds barred was a 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. Meanwhile there was a new code of honor that was emerging. It was sort of like good sportsmanship in a way. Rather than we are all gentlemen, lets cut deals, which they did do, the new code of a fair fight code. He very much stuck to that. He would say that he found letters in the library. He said that you know my word is as good as my bond and it was very important to him to develop that reputation. Fair might of been putting your fairy but across the pier. Tearing up or burning down the stationr guys ferry may been ok. There was an insane race between henry clay and the steamship down the hudson. And amazingly wild race. There is confront people of the boat at stops and barely pumping along. At the end of this, the henry clays boiler explodes. It kills about hundred 50 people out of yonkers. Steamboat explodes. This was basic commuter transportation at the time. Not only that this was like a , spectator sport. It really matter to people that they were on the fastest boat. Many were cheering it on. The ones who arent panicked. T. J. there were two sets of passengers, the ones that were very excited about the racing and the ones that insisted on being towed behind a barge behind the boat. Kevin all of that was reworked. That was ok. All of these people ended up respecting the commodore for fighting to the death on scene ships and rail lines. Then you get down to jay gold and big jim fisk. They stepped over the whole bounds. That is interesting, you go from this early era of steamboats, which for a lot of business reasons are very competition oriented because they warned that expensive. A small group of people could get together and build one and you could move up between markets. After competing for a while, you could take it somewhere else. One of my favorite examples of that era is in 1838, the Staten Island ferry boater ordered his captain to ram another ferry. I found these court accounts from people on the ferry. Hell must did. 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. Whats going to happen at the end . You have to come to some sort of terms because the other guy is still there. Due to the nature of railroads, because they are so capital intensive, even if you had no business at all, your fixed expenses of maintaining and having a railroad were still high. A railroad that was in bad shape would cut prices. Even if they were losing money, it was better than losing more money. Railroads were stuck. There is an incentive to undercut prices. Vanderbilt takes part in something that is going on before his time, gentlemens agreements. What you hadnt early america reappears because of business logic where you have these 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. At the same time, vanderbilt himself was rising in social stature. He is taking on a business that is inclined toward gentlemanly agreements. He himself is becoming more gentlemanly. Toward the end of his life, his personality and demeanor was much more inclined towards the young steamboat captain. There was a curious parallel in business. Jay gould and jim fisk come along and they are doing things like talking about secret deals with the press. They are to liberally trying to insult and demean the commodore. He became obsessed with them. Even of the railroad was not in a position to do a lot of harm it became this famous rivalry in , the American Press between these businessmen. They actually start just certificatesk without anything behind them. Just pure larceny. Timesomehow avoided jail over this. There were strict laws that comedyhow much shares you could issue of the company. This is a minute or need to go into, but it has to do with the whole kind of cultural ferment around the rise of security. People felt that a share of stock represented 100 of extra fixed capital. When you increase the number of shares without building new business physical infrastructure, it was seen as by the most intellectual figures as fraud. Vanderbilt was front corner the market in the shares. They started printing shares like crazy. It was a very famous episode where vanderbilt got a judge to issue arrest warrants. Here they are, officers of one of the leading and largest corporations in america. Racing away from the police with barrels of greenbacks. They set up shop in fort taylor over in new jersey. The garden state welcome them. So to settle the matter, jay gould went to albany with some cash. Legislative see both sides of the issue depending on how much helping the suitcase was. Vanderbilt managed to force them to pay back what he lost. It was an incredible episode. He ended up eat never really for gave them for it but he did try to contact jim fisk. About the time of the civil starts to vanderbilt try and contact the dead. People were going to mediums all the time to contact the dead. I dont think vanderbilt based drew any business or based any decisions on this. Ive personally dont believe in spiritualism. I dont think mediums were contacting the dead. I think youre saying a lot of nonsense. Vanderbilt clued into that too. There was a great incident that you were referring to. He called up the ghost of jim fisk. Vanderbilt asked him about stock. The answers made no sense at all. Vanderbilt said what you talking about. Ghost. Arguing with the the mr. To joke at each other and said how do you like on the other side . He said you find out soon enough. It was a hilarious incident. He found comfort with those but didnt make decisions off them. That rivalry, there is a quote that i never found a good source for. For vanderbilt saying it. It is still one of my favorite because it summarizes his. He supposedly said it never pays to kick a skunk. I wish i could document it. I couldnt document it. It was his attitude towards jay gould. In the end, in the most important battles, he either held his own or came out better. Jay gould managed to embarrass him. Its one of the reasons why he was so embittered about it. During the great war, jay gould fisk radically undercut prices for cattle cars in the midwest. Finally, the new York Central Railroad went from 150 dollars per cattle. For cattle to one dollar a car. Jay gould and jim fisk were buying thousands of cattle in chicago and shipping it over to new york central for nothing. Once they did commit a loud announcement of the press. It was actually a trivial dispute. It was that kind of getting under his skin. By contrast, some that we contact talked about before, other businessmen would have vicious fights and would not be personal. That story inadvertently shows the whole span of then to builds life. One of the people he is competing against his daniel drew who is supposedly started watering stock and driving little stock into new york. Thats a got beef to market in the early 19th century. 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. The whole city grubber on there. By the end of his career, he was fighting these wars over transporting cattle by the thousands across the country. Mrs. All the change they railroads and brought. To talk about another skunk for a moment. William walker who was called a filibuster. Nothing to do with the senate procedure. At the time and referred to a booter, someone who would try to go down and 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 in a latin American Country and try to take it over. This is considered a great thing by southern and confederate leaning individuals. They would thought think it to have a natural area slavery. Especially in the case of cuba. After the fall of the spanish empire, cuba remained the star of the spanish overseen overseas possessions. There was a large human largescale slavery are ready and lots of humans fighting for independence. Humanwas also a Large Population in new york. My classmate is writing about this. , the southerners looking to explant savory were fascinated to expand slavery were fascinated with it. Walker ended up landing in San Francisco. He made it to mexico unsuccessfully. Then he got a contract to fight for one side in the nicaraguan civil war. He sailed off with 56 men to fight for one side in nicaraguas own perpetual c