Great Fortunes: Cornelius Vanderbilt Part 6
He built the famous steamer “North Star,” and made a triumphal cruise in her to the Old World. It is said that he was at one time very anxious to divide the business of the ocean with the Collins Line of steamers. When the “Arctic” was lost he applied to Mr. Collins to allow his steamer to run in her place. He promised to make no claim for the mail subsidy which Collins received, and to take the vessel off as soon as Collins could build another to take her place. Mr. Collins was afraid to let Mr. Vanderbilt get any hold on the foreign trade of the country, and not only refused his request, but did so in a manner which roused the anger of the veteran, who thereupon told Mr. Collins that he would run his line off the ocean if it took his whole life and entire fortune to do it. He kept his word. He at once offered the Government to carry the mails more promptly and regularly than had ever been done before, and to do this for a term of years without asking one single cent as subsidy. It was well known that he was perfectly able to do what he promised, and he pressed the matter upon the Government so vigorously that he was successful. The subsidy to Collins was withdrawn, and the magnificent line soon fell to pieces in consequence of the bankruptcy of its owner, who might have averted his fate by the exercise of a little liberality.
Of late years, Mr. Vanderbilt has been withdrawing his money from ships and steamers, and investing it in railroads and iron works. Success has attended him in all his ventures, and he is to-day worth over thirty millions of dollars. He controls the Hudson River, Harlem, and New York Central Roads, and is largely interested in many others. He is all powerful in the stock market, and can move it as he will.
A few years ago he wished to consolidate the Hudson River and Harlem Railroads, and when the scheme was presented before the Legislature of New York, secured a sufficient number of votes to insure the passage of the bill authorizing the consolidation. Before the bill was called up on its final passage, however, he learned from a trustworthy source that the members of the Legislature who had promised to vote for the bill were determined to vote against it, with the hope of ruining him. The stock of Harlem Road was then selling very high, in consequence of the expected consolidation. The defeat of the bill would, of course, cause it to fall immediately. The unprincipled legislators at once commenced a shrewd game. They sold Harlem right and left, to be delivered at a future day, and found plenty of purchasers. They let their friends into the secret, and there was soon a great deal of “selling ’short’” in this stock. [D] Commodore Vanderbilt, although indignant at the treachery of which he was to be made the victim, held his peace. He went into the market quietly, with all the funds he could raise, purchased every dollar’s worth of Harlem stock he could lay his hands on, and locked it up in his safe. When the bill came before the Legislature on its final passage, the members who had pledged themselves to vote for it voted against it, and it was rejected.
The speculators were jubilant. They were sure that the defeat of the bill would bring down “Harlem” with a rush. To their astonishment, however, “Harlem” did not fall. It remained stationary the first day, and then, to their dismay, began to rise steadily. Those to whom they had sold demanded the delivery of the stock, but the speculators found it impossible to buy it. There was none in the market at any price. Being unable to deliver stock, they were forced to pay its equivalent in money, and the result was, that all who were engaged in the infamous scheme were ruined. One of the shrewdest operators in New York lost over two hundred thousand dollars. He refused to pay, but his name was at once stricken from the list of stock-brokers. This brought him to terms, and he made good his contracts. Vanderbilt made enough money out of this effort to crush him to pay for all the stock he owned in the Harlem Road.
