Inheriting nearly $100 million in 1877, William Henry Vanderbilt doubled his father’s fortune in under nine years. As the eldest son of Commodore Cornelius Vanderbilt, he transitioned from a clerk at a New York banking house to the head of a massive railroad empire, ultimately leaving behind one of the most significant estates in nineteenth-century American history.
Early Career and Family Dynamics
Born in 1821 in New Brunswick, New Jersey, William Henry Vanderbilt spent his early years under the intense scrutiny of his father. While he attended Columbia College, he did not graduate. His career began in banking at age 19 before he entered the railroad sector. He served as president of the Staten Island Railway in 1862 and later as vice-president of the Hudson River railway. His relationship with the Commodore improved significantly following a 1860 European trip aboard the steamship Vanderbilt, leading to his increased involvement in family business affairs.
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Upon his father’s death, Vanderbilt assumed leadership of several major transport firms, including the New York Central and Hudson River Railroad, the Lake Shore and Michigan Southern Railway, the Canada Southern Railway, and the Michigan Central Railroad. His extensive portfolio of holdings spanned numerous lines and infrastructure projects, such as the New York and Harlem Rail Road and the Chicago, Burlington and Quincy Railroad. In 1883, he stepped away from the daily operations of these companies, appointing his sons to chairmanships while entrusting management to experienced executives.
Public Perception and Financial Entanglements
Vanderbilt’s public reputation suffered following a controversial 1883 interview concerning the necessity of limited express trains, where he was misquoted as stating, 'The public be damned!' He later clarified his stance, emphasizing that railroads were private enterprises intended to generate dividends. His financial life also intersected with national politics through a failed investment in the firm Grant & Ward. After losing $150,000 to a Ponzi scheme operated by Ferdinand Ward, Vanderbilt accepted Ulysses S. Grant’s civil war memorabilia as collateral. Following Grant’s death in 1885, Vanderbilt returned these items to Julia Grant.
Philanthropy and Final Years
Beyond his commercial interests, Vanderbilt funded various institutions, including the YMCA and the Metropolitan Opera. He provided the endowment for the Columbia University College of Physicians and Surgeons and supported the construction of Wesley Hall at Vanderbilt University in 1880. He also contributed to the McCormick Observatory at the University of Virginia. Vanderbilt died in Manhattan on December 8, 1885, following a stroke. He was buried in the Vanderbilt Family Cemetery and Mausoleum in New Dorp, Staten Island, which he had commissioned.
Fast facts
- Born: 1821, New Brunswick
- Died: 1885, Manhattan
- Spouse: Maria Louisa Kissam
- Education: Columbia College
- Inheritance: $100 million
- Primary Industry: Railroads
- Burial Site: Vanderbilt Family Cemetery and Mausoleum
Questions readers ask
How did William Henry Vanderbilt increase his father's wealth?
He managed a vast portfolio of railroad holdings, including the New York Central and Hudson River Railroad, effectively doubling the inherited fortune within nine years.
What was his relationship with Ulysses S. Grant?
They were both victims of a Ponzi scheme orchestrated by Ferdinand Ward; Vanderbilt accepted Grant's war memorabilia as debt payment but later returned the items to Grant's widow.
Achievements
- Holdings: Shelburne Farms
- Educated at Columbia College
