Answer:
Cornelius Vanderbilt started his rail empire by borrowing $100 to buy a small ferry boat, he quickly earned the reputation of a shrewd businessman. He always got ahead by any means necessary by hook or crook, it was pretty much win or lose. No middle ground. His single ship quickly became a fleet of ships and he was christened “The Commodore.”
He quickly understood the power of transportation – own the infrastructure and call the shot. At this peak, he does the unthinkable; he sold all his ships and invested in railroads. In today’s speak; he disrupted/reinvented himself/business. He saw the future and was willing to bet everything on it. His decision paid off greatly and he became the richest man in America with a net worth of $68M, which will roughly translate to about $75B today. He would be the 3rd richest man in the world today, just after Buffet.
Then around 1806, tragedy struck! Vanderbilt lost his favourite son, George, in a war. He was devastated. The loss of his child had far-reaching consequences, almost threatening his empire. Vanderbilt’s rivals sensing this, swooped in. They wanted to take the old man out. Vanderbilt sent his other son, William, to carry out a trade negotiation; his rivals laughed him away and sent him back to his father. Vanderbilt, upon hearing this, was very upset. He called his son into a room, pulled out a map and declared ‘‘they want war, I will give them war.’’
Vanderbilt owned the only rail bridge in NYC then; it was the gateway to the country’s largest port and market. He understood this leverage and he wasn’t going to spare anything that will bring his competition to their knees. You don’t mess with Vanderbilt and expect to walk away unscarred. This was an opportunity to teach William what it meant to be a Vanderbilt. Vanderbilt commanded his son to close the bridge, essentially blocking other rail operators access into the country’s biggest port and market.
New York City was a gateway into the continent, with this move, he was asserting his power as the rail king. He said to his son “we are going to watch them bleed.” And bled, they did. The presidents of the rival companies had no option than to sell, their stock holdings were on a free fall. William, sensing another opportunity, came to his dad and informed him about the free fall, Vanderbilt commanded him to buy everything he could. He dealt his rivals a knockout punch. In just days, he bought out all his rivals, creating the largest, single rail company in America.
Vanderbilt wasn’t contented with being the rail king; he wanted the world to know about it. He built the Central depot. It will harmonize Harlem, Hudson and Central, he wanted it in the heart of New York. This rail magnet also pioneered the concept of a hostile takeover. As time passed, he came to the realization that at the end of the day, transportation will be a bigger business than owning railroads.
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