Hazeanni's Reviews > Fortune's Children: The Fall of the House of Vanderbilt

Finally after almost 2 months, I brought my curtain down on Fortune's Children: The Fall of the House of Vanderbilt. I took a slow reading on this, to keep track on each of them. They had a tendency to bestow namesakes to their newborns. It was also to make a rounded picture; on how descendants of Cornelius 'The Commodore' Vanderbilt; lost the greatest family fortune in America.

This is a dry book without much warmth. Since, the earlier Vanderbilt was an aloof and distant family, the writing style reflecting the family quite well.

So, where the author stands within the family? He is a distance kin; not a direct descendant of The Commodore. Both shared a common ancestor, Jan Aertsen van der Bild 1627-1704 who arrived in this country at 1650 and resided in Flatbush, Long Island. The latter's grandson, Jacob Jr (The Commodore grandfather), started the family's Staten Island branch in 1718 when he bought a farm there. Meanwhile, author's branch settled in New Jersey; for several generations predated the Revolutionary War. The most notable was, his grandfather and namesake Arthur T. Vanderbilt (1888-1957); the Chief Justice of New Jersey Supreme Court.

Author's interest on this subject began during high school years, after noticing people got impressed upon hearing his name. He got better service and treatment. But, his knowledge of his well-known relatives, came only from what's written on the textbook. His own parents never shared anecdotes about the famous fortune and acted like it never exist. Even his Vanderbilt's relatives knew nothing about it. Probably because the clan was so dispersed. (This was during the day before the internet; prior to the publication of this book in 1989.)

During the author's research for materials of the book, he felt amazed at the extent of wealth, held by the dynasty. The Commodore himself worth $105m; the richest man in America. Much more than amount held by the United States Treasury in 1877. 6 years after inherited $95m, his son William Henry (Billy) managed to more than doubled his wealth to $194m in 1883.

I agreed with the author's that Billy was greatly misconstrued by the media then. He differed in business modus operandi from his father. He trusted his men and sought their advice. A team player, he delegated tasks. He was a peacemaker and accommodated his business rivals. Unlike his father who ruined them. He proud of quality services provided by his companies. (Unlike his father.) He cared for the welfare of his staff. He did help others quietly without fanfare.

But it was Billy, being labelled by the media as the ultimate model of robber baron. Which I felt he didn't deserve.

The Commodore's saying had became true. There's a hell to pay after his death.

Billy was aimed by his business enemies, competitors, legislators etc. The interview with Chicago Tribune in October 1882 opened the floodgate. The quote of 'The Public Be Damned' became the united battlecry for politicians, preachers, media and public in condemning the excess of large corporations and capitalism.

My opinion (based on the excerpt); he must had been provoked, IF he really said that. Also, it had been taken out of context and sensationalized by media to sell their newspapers. Even now, there's some doubt on whether he really uttered that quote.

As the key service provider to the main mode of transportation for that period, Vanderbilt's position was extremely influential. It was not only in connecting people. They could flourish or ruin other businesses. Merchants depended on them. Rural farmers need it to transport fresh produce. Consumer good manufacturers used railroads to reach various distribution lines in order to supply public demands. Any disruption on service affected the public in so large a scale. That's how powerful their position. The Vanderbilt were on top of this. As the king of railroads.

As much as they were among titans of industries; they were not accepted into the New York 400 high society, so carefully guarded by Caroline, The Mrs Astor. They were considered nouveau riche; with objectional elements.

It was in search for this social recognition that prompted Alva, Mrs William K Vanderbilt (3rd generation) into building the iconic Indiana limestone mansion with French Renaissance style on 660 Fifth Avenue by Fifty Seventh Street. It was design to startle and to impress.

Still the door remained closed to the Vanderbilt. Alva; who traced her ancestors back to a Scottish aristocracy couldn't stand this.

Alva had Mrs Astor checkmated when she decided to hold a fancy dress ball to officially open her new mansion on one Monday evening on 26 March 1883. The guest of honour was Consuelo, Viscountess Mandeville (later Duchess of Manchester), her best friend.

For New York high society, Monday evenings were always reserved for Mrs Astor. It was the time she will host her social events. The Patriarch Ball, reception, musicales, dance, opera night etc.

It's an open challenge to Mrs. Astor's reigns as the Queen of New York society.

1200 invitations had been issued to the crème de la crème. Excluding Mrs Astor of course. Who among them could resist to see how splendid and majestic the interior of 660 looked liked?

The social arbiter Ward McAllister advised her friend that Vanderbilt's time had inevitably arrived. It's time to accept them, to resist no longer. Therefore, Mrs Astor went to Alva mansion and presented her calling card.

That's the society's rule. She's obliged to send her calling card personally to signify introduction and acceptance into her community. Her exclusion from the ball will carry some social prospect implications to her daughter Carrie Astor. The satisfied Alva sent 'the very last invitation card' by the next day.

The ball marked the Vanderbilt's triumphant entry into the high society and recognitions from their peers. It changed everything for them.

5 weeks later, Billy resigned as chairman of all his railroad businesses and appointed his sons (and some professionals) to fill in his shoes. He belief that his children will need more money in order to maintain their new social positions.

It's not wrong to say, Alva started the trend of enormous spending spree and grandiose display of wealth within the family. Previously Vanderbilts were content to live quietly.

If the 1st two generations managed to exorbitantly increase the family fortune, the 3rd generation were not necessarily the same case except for a few (Frederick, Mrs Twombly, & Mrs Whitney). The new head of dynasty, Cornelius II maintained it. He managed the business conservatively as accountant could be. Never expanded the empire to include new emerging industries. He never extended the scope of their railroads. In 1892, he declined an offer to takeover from the executive of Union Pacific that will offered access to transcontinental networks. What a miss of opportunity!

Surprisingly, there's little mention about Alfred Gwynne here. Except for few brief references about the settlement of inheritance with Neily and; he died during the sinking of Lusitania 1915. Why?

Alfred Gwynne emerged as the new head of the dynasty after his father indeed carried his threat to disinherit his elder brother, Cornelius III (Neily). He received the residual estate worth $43m in 1899. As the chairman of New York Central Railroad, more should be written about him. It will show where bulks of the original fortune went. What and how it went wrong. He shrunk his wealth to $26m by the time of his death.

So those few others in 4th generation. The most epic fall was his brother Reginald (father of Gloria), who squandered his whole fortune and died in debts. His estate Sandy Point Farm and other assets to be sold and auctioned off to pay debtors. That left a residual of $130k for his young widow. Luckily, he didn't touch the principle of $5m trust fund his father wisely set up. Thus, he abled to pass it up to his 2 daughters.

The author written in his introduction that NONE of 120 attendees of the 1st family reunion held in Vanderbilt University 1973 were millionaire. It is understandable that the original fortune had been diluted in some branches of the family. Afterall, each heir/heiress didn't receive the equal amount of inheritance. Especially Commodore's daughters.

Nevertheless, I took it with a pinch of salt. There's 592 descendants still living that year. Attendees only accounted for roughly 20%. 80 of them were direct descendants, while 40 were marrying into the family. I felt it was not exactly an accurate representation for the state of wealth of the whole clan. Gloria Vanderbilt and Carter Burden weren't there.

The reunion was organized by William H. Vanderbilt III (1901-1981), the titular head of the family. The 59th Governor of Rhode Island inherited 450 acres of Oakland Farm estate in Portsmouth, from his father Alfred Gwynne. He also received $5m trust fund upon his majority. According to John Astor (probably cousin), he managed to increase that amount by 10 times.

Surely he worth at least a million in 1973? Even after he sold the farm in 1947 and his bus service in 50s.

Or, it is because he gave away much of his wealth to various charities and causes (including Vanderbilt University) during his final years (up to 1981) that he no longer had a million in his name?

According to Peter O Wilde, who attended the reunion and quoted by NY Times; "Not ALL Vanderbilt are extremely wealthy. SOME of them had to work for a living".
* O Wilde is a great great grandson of Billy. He was a real estate consultant and teached at Harvard Business school.

Based on above, it also meant SOME of them were also quite rich. Though not extremely wealthy to make it into the richest list. Probably self-made. Not through inheritance. That's why it didn't count. They were tracing the residue of the original inheritance left by The Commodore and Billy.

I stand corrected on this, okay?

There's one glaring difficulty in reading this book. The author didn't provide MORE social and economic context when Vanderbilt's mansions on Fifth Avenue sold and demolished. Besides stating the neighbourhood became a more of a business district, outrageous spending, and taxes eat much of their income.

That's important, at least to me. It could provide more rounded picture on why, all Vanderbilt's mansions fated to fall down.

There's a probability of empty nest, evolving residential trends and lifestyles. Apartments and townhouses sprawling nearby could become a preferable choice for their younger generations. With less maintenance and less tax. Balls could be held in a grand hotel like Waldorf Astoria. The necessities to live in a huge mansion, on a fast changing neighbourhood landscape were no longer there.

Were it also due to a very slow economic and business recovery post Great Depression? Or, railroad business became less competitive, therefore less dividend?

My feeling is, these mansions could be renovated to become palatial hotels. The monumental structure, the majestic setting, opulence interiors had all characteristics of a grandeur hotel. It will fitted nicely with the incoming facade of Fifth Avenue as business district. Since railroad business was on decline, they could switch to hospitality business. It's on my mind why not this course being taken. At least, it weren't discussed on this book.

The last Vanderbilt's mansion on Fifth Avenue was 640. It's where Grace Vanderbilt, the reigning Queen of New York society lived and entertained her guests. (She was recognised as such by Wilhelm II, the German Emperor no less!) See trivia no 5. If she had a choice and money, surely she will do everything in her power to ensure 640 will remain standing. I don't think she will object to tourist and passerby gawking at the outside of her mansion taking photos. She loved crowds. She thrived in it.

This book has an good amount of sourced facts, anecdotes and gossips. The footnotes are very interesting but, its located at the end of the book. List of references provided if readers wanted to explore more; on specific person or subject.

At the same time, it has a sufficient emotional distancing. Afterall, not everyone found the excess of the Gilded Age palatable.

On the whole, 5 generations of Vanderbilt dynasty provided a great example of case study. On how to get rich; how to maintain that wealth; and how to loose it.

Some trivia.
1. How stingy the Commodore could be? During his last year, his physician Dr Linsly suggested him to sip a bottle of champagne every morning. He replied that he will drink soda water instead. When suggested to use a woolen blanket; The Commodore commanded his wife to buy a bale blanket. The reason? He said he couldn't afford it. Mindboggling.

2. Alva's 1883 Fancy Dress Ball that costed $250k lasted until the sunrise the next morning. To the amazement of passerby who was on the way to work and school, upon looking at the departured guests. Alva dressed as a Venetian Renaissance princess. Mrs Astor came very heavily bedecked by gems and diamonds. Some opinionated that, she wore every jewelleries she owned. While evening dress was prohibited to those invited, Billy as her father in law and the world richest man could wear whatever he wanted. He was in his formal black evening clothes. So did his friend who happened to be the 18th POTUS Ulysses A. Grant.

3. To give Consuelo a perfect posture and a stately walk; her mother Alva devised a straight rod to run down her spine, strapped at her waist and over the shoulder. She had to write on the desk with this device attached and held her book high when reading. Want to try?

4. Do you know that Consuelo had never been the 9th Duke of Marlborough first choice of bride; on any aspects?
- In Newport, during his visit with Alva to The Breakers, he proposed to Getrude Vanderbilt. Probably sensing that Getrude's parents were much wealthier than Consuelo's. Only to be rejected outright. He proposed to Consuelo during his last day.
- After walked down the aisle and settled themselves inside a carriage, the Duke told his bride that he had to give up the woman he loved for their marriage.
- Seemed like Consuelo was his last choice to maintain the Blenheim Palace.

5. How busy was the social calendar of Grace, Mrs Cornelius Vanderbilt III? She gave small luncheon or dinner daily. Tea party every Sunday for 100 guests. Twice a week, she held a dinner party. She hosted a ball once a month.
Bored with all those and the expenses it incurred, her husband began eating alone at his soundproof laboratory and spent more time with railroad inspection tours, National Guard's duty and his yatch.