Railway Giants: Jobs, Trump, and Musk Would Envy Him—Vanderbilt and His Railroad Empire

Cornelius Vanderbilt started as a poor farm boy, but his life story defies all expectations. He built a massive empire that even today’s giants like Musk, Trump, or Jobs would envy. How did a simple freight transporter become America's railroad king, revolutionizing industry and making his mark on history?

It’s 1794, and we’re on Staten Island, New York. Here, to a family of farmers and descendants of Dutch settlers, Cornelius and Phebe Hand Vanderbilt, a boy is born and named Cornelius, after his father. At this time, the United States is one of the youngest nations on the world map. Less than 20 years later, a group of patriots, led by Thomas Jefferson and George Washington, issued the Declaration of Independence in 1776, demanding the creation of an independent United States, free from British colonial rule.

This demand inevitably led to war, during which the Americans, with French support—motivated by the chance to weaken their perpetual rival—defeated Great Britain. This was formalized in 1783 when the Treaty of Paris was signed, awarding the new nation all territories east of the Mississippi River, except Canada and Florida.

After securing independence, the Americans wasted no time. They sought to expand their territory, primarily through three means: purchasing land from other countries, engaging in wars, and seizing Native American lands, often forcibly relocating the indigenous population—a tragic chapter in history that even included the use of biological weapons.

By the end of the 19th century, after completing the settlement of America, the U.S. emerged as one of the world’s largest economies and powers. Its position continued to strengthen, particularly as its territory remained untouched by the devastation of both world wars, and the wounds from the Civil War between 1861 and 1865—where the Northern states (the Union) defeated the Southern states (the Confederacy)—were eventually healed.

Let’s return to Cornelius. At just 11 years old, he was forced to leave school and begin his career. He started by helping his father transport cargo between Manhattan and Staten Island. Even at a young age, Cornelius demonstrated his own entrepreneurial spirit. At 16, he began operating a two-masted sailboat, known as a periauger, to transport goods. However, he had to share the profits with his parents, who had lent him money to purchase the boat.

Thanks to aggressive marketing, shrewd deals, and undercutting the competition, his venture proved highly profitable and successful. The business thrived so much that by age 18, Cornelius secured a contract with the U.S. Army to transport supplies. He reinvested much of his earnings, allowing his business to grow and expand its fleet.

In 1813, Cornelius married his cousin, Sophia Johnson, as reported by sources. The couple would have 13 children, 11 of whom would reach adulthood. However, Cornelius was not a great husband or father. He was unfaithful to his wife with prostitutes and showed little affection toward his children.

In contrast to his family life, Cornelius’s business ventures were a different story. He quickly recognized the potential of the recently invented steam engine and, in 1817, partnered with Thomas Gibbons to establish a company that used steamboats for transporting cargo and passengers. The company prospered, and it was only natural that, after Gibbons’s death, Cornelius would attempt to buy out the share inherited by Gibbons’s son, a goal he eventually achieved.

Cornelius soon became a well-known figure, and his company grew in popularity. He expanded his operations to the Hudson River, where he ran equally popular passenger lines. He continued to expand his steamboat empire well into old age.

During the American Civil War, Cornelius decided to donate his ships to the Union Navy. By 1864, Cornelius concluded his business in the maritime industry, having amassed a fortune of nearly $30 million. He decided to invest this wealth in a new challenge: railroads. Gradually, he acquired several railroad companies, securing complete control over the Chicago-New York railway line. His investments brought a revolution to American railroads. With reduced travel times, well-organized schedules, and greater passenger comfort, competitors struggled to keep up.

Meanwhile, in 1868, Cornelius’s wife passed away. Despite their complicated relationship, her death deeply affected him. He even sought help from two women who claimed to be able to summon the spirits of the dead. However, it was his family, who despite his behavior toward them, did not abandon him and ultimately saved him from despair. They introduced him to his much younger distant cousin, Frank Armstrong, whom he married.

Cornelius capped off his illustrious career in 1871 with a true masterpiece. He built the Grand Central Depot for the New York Central Railroad. This enormous station and terminal featured modern elements like raised platforms, a glass-domed roof covering all the tracks, and boarding areas accessible only to passengers. At the city's urging, the tracks were later lowered below street level to reduce noise and smoke associated with rail traffic.

But dark clouds were beginning to gather over Cornelius. In 1876, he fell seriously ill. Exhaustion, heart issues, and stomach problems led to his death, which came knocking in January 1877. In his will, he divided his estate among his children and wife. Today, it is estimated that Cornelius's wealth would be worth over $200 billion if adjusted to the 1877 GDP, making him the second richest person in American history after Standard Oil co-founder John D. Rockefeller.

Source: History.com; Biography.com