Great Fortunes, and How They Were Made

by James Dabney McCabe

Passengers to Philadelphia, at that day, were transported by steamer from New York to New Brunswick, where they remained all night. The next morning they took the stage for Trenton, from which they were conveyed by steamer to Philadelphia. The hotel at New Brunswick was a miserable affair, and had never paid expenses. When Captain Vanderbilt took command of the steamer, he was offered the hotel rent free, and accepted the offer. He placed the house in charge of his wife, under whose vigorous administration it soon acquired a popularity which was of the greatest benefit to the line.

For seven years he was harassed and hampered by the hostility of the State of New York, which had granted to Fulton and Livingston the sole right to navigate New York waters by steam. Thomas Gibbons believed this law to be unconstitutional, and ran his boats in defiance of it. The authorities of the State resented his disregard of their monopoly, and a long and vexatious warfare sprang up between them, which was ended only in 1824, by the decision of the Supreme Court of the United States in favor of Mr. Gibbons.

As a means of crippling Gibbons, the New York authorities at one time determined to arrest Vanderbilt and his crew; but the wary captain was too cunning for them. He would land his crew in Jersey City, and take charge of the engine himself, while a lady managed the helm. In this way he approached the wharf at New York, landed his passengers, and took on more. As soon as he had made his boat fast, he concealed himself in the hold until the moment of his departure. As soon as he appeared on deck, the Sheriff's officer (who was changed every day to avoid recognition) would approach him with a warrant for his arrest. His reply was an order to let go the line. The officer, unwilling to be carried off to New Jersey, where he was threatened with imprisonment in the penitentiary for interfering with the steamer, would at once jump ashore, or beg to be landed. This was kept up for two months, but the captain successfully baffled his enemies during the whole of that period. The opponents of Mr. Gibbons offered a larger and better boat than the one he commanded if he would enter their service, but he firmly declined all their offers, avowing his determination to remain with Mr. Gibbons until the difficulty was settled.

After the decision of the Supreme Court placed Mr. Gibbons in the full enjoyment of his rights, Captain Vanderbilt was allowed to manage the line in his own way, and conducted it with so much skill and vigor that it paid its owner an annual profit of forty thousand dollars. Mr. Gibbons offered to increase his salary to five thousand dollars, but he refused to accept the offer.

"I did it on principle," he said, afterward. "The other captains had but one thousand, and they were already jealous enough of me. Besides, I never cared for money. All I ever cared for was to carry my point."

In 1829 he determined to leave the service of Mr. Gibbons, with whom he had been connected for eleven years. He was thirty-five years old, and had saved thirty thousand dollars. He resolved to build a steamer of his own, and command her himself, and accordingly made known his intention to his employer. Mr. Gibbons at once declared that he could not carry on the line without his assistance, and told him he might make his own terms if he would stay with him. Captain Vanderbilt had formed his decision after much thought, and being satisfied that he was doing right, he persisted in his determination to set up for himself. Mr. Gibbons then offered to sell him the line on the spot, and to take his pay as the money should be earned. It was a splendid offer, but it was firmly and gratefully refused. The captain knew the men among whom he would be thrown, and that they could never act together harmoniously. He believed his own ideas to be the best, and wished to be free to carry them out.

After leaving Mr. Gibbons he built a small steamer, called the "Caroline," which he commanded himself. In a few years he was the owner of several other small steamers plying between New York and the neighboring towns. He made slow progress at first, for he had strong opposition to overcome. The steamboat interest was in the hands of powerful companies, backed by immense capital, and these companies were not disposed to tolerate the interference of any new-comer. They met their match in all cases, however, for Vanderbilt inaugurated so sharp a business opposition that the best of them were forced to compromise with him. These troubles were very annoying to him, and cost him nearly every dollar he was worth, but he persevered, and at length "carried his point."

From that time he made his way gradually in his business, until he rose to the head of the steamboat interest of the United States. He has owned or been interested in one hundred steam vessels, and has been instrumental in a greater degree than any other man in bringing down the tariff of steamboat fares. He never builds a vessel without giving his personal superintendence to every detail, so that all his various craft have been models of their kind. He selects his officers with the greatest care, pays them liberal salaries, and, as long as they do their duty, sustains them against all outside interference or intrigue. In this way he inspires them with zeal, and the result is that he has never lost a vessel by fire, explosion, or wreck.