Cornelius Vanderbilt – The Intelligent Collector Magazine

Linking Chicago’s 1893 Exposition, Columbus, the U.S. Sanitary Commission and murder

A National French Draft Horse Association gold medal awarded to Ed Hodgson at the 1893 Columbian Exposition sold for $14,400 at an August 2019 Heritage auction.

By Jim O’Neal

In 2003, I got a reliable tip about a new non-fiction book, The Devil in the White City by Erik Larson. The author skillfully weaves two complex stories into an entertaining narrative. The story revolves around the 1893 World’s Columbian Exposition in Chicago (“The White City”) and the riveting true story of H.H. Holmes (“The Devil”). Holmes is credited with being the first American serial killer after he lured as many as 200 people into his “Murder Castle.” At the same time, Jack the Ripper was plying his trade in London. Several attempts have been unsuccessful in linking these two monsters.

In 2010, Leonardo DiCaprio bought the film rights to the best-selling book and, presumably, his production company, Appian Way Productions, will eventually be turning out a movie. A short list of films by the studio includes The Aviator, Public Enemies, The Wolf of Wall Street and the Oscar-winning The Revenant. The production company has collaborated with Martin Scorsese and Clint Eastwood on several entertaining films, but it’s not clear if any other organizations will be involved. Larson went on to write several other excellent books that I can safely recommend for your enjoyment.

The 1893 Columbian Exposition was designed to celebrate the 400th anniversary of Christopher Columbus’ voyages to the New World. The Italian explorer and navigator made four voyages in 12 years (1492-1504), primarily searching for a shorter trade route from Europe to Asia. He was unsuccessful and, curiously, despite never setting foot on North America, is honored with a national holiday. Hence, America derives its name from a different Italian explorer, mapmaker Amerigo Vespucci, who also claimed to have made several voyages to our ZIP code.

However, Columbus is credited with opening the Western World, which resulted in significant trade and the European colonization of our neighbors. His trips include contact with Hispaniola (Haiti and the Dominican Republic), Cuba, Central and South America and several of the smaller Caribbean Islands. Latter-day historians have been critical of his treatment of the indigenous people. In addition to slavery, the “Columbian Exchange” was responsible for exposing local inhabitants to new diseases that resulted in widespread death due a lack of immunity (sound familiar?). Trade provided Europe with an amazing array of new foodstuffs, like the 200-plus varieties of potatoes from Chile, along with tobacco and dozens of others too numerous to list.

There was vigorous competition to host the 1893 Fair – with St. Louis, Chicago and New York City the leading contenders. NYC had powerful backers, with Cornelius Vanderbilt, William Astor and J.P. Morgan agreeing to provide $15 million in financing. But Chicago had their own heavy-hitters, who matched the $15 million and finally prevailed. They were especially motivated since this kind of visibility would provide an excellent opportunity to demonstrate they had fully recovered from the ashes of the Great Fire of 1871, which was wrongfully blamed on Mrs. O’Leary and her innocent cow. The event was a commercial success, with over 27 million visitors from 46 countries. The “White City” nickname was derived from the color of the facade of the 14 major buildings designed by some of the world’s most prominent architects. Plus, it didn’t hurt that a civil engineer named George Washington Ferris Jr. showed up with his now-famous wheel that could thrill over 2,000 people, fully loaded, at 50 cents per passenger. At over $1,000 per ride, it was the equivalent of having a U.S. Mint without having to buy any silver.

The real factor in the exhibition’s success was the remarkable skill of one man, Frederick Law Olmsted, primarily known for his work as superintendent for Central Park in New York. He had been a mere 35 years old and was soon in charge of thousands of workers. Then, the Civil War started and Olmsted took a short leave of absence since everyone was convinced it would be over very quickly. A carriage accident prevented him from joining the army to fight but, fortunately, he was asked to become the leader of the U.S. Sanitary Commission. When the war started, Northern forces consisted almost exclusively of volunteers that totally lacked the capability to provide medical assistance or even food to wounded soldiers. With Olmsted in charge, the Sanitary Commission raised funding and supplies from ordinary citizens and then devised means to deliver medical attention, food, tents and blankets to wounded soldiers right on the battlefields. This was an early example of Uber, but without an iPhone.

His reputation grew and 30 years later, the CEO of the Columbian Exposition hired him to organize everything in Chicago. Piece of cake.

I hope President Biden can find someone with just 5 percent of Frederick Olmsted’s skill and experience. Otherwise, it’s going to be a long four years.

Intelligent Collector blogger JIM O’NEAL is an avid collector and history buff. He is president and CEO of Frito-Lay International [retired] and earlier served as chair and CEO of PepsiCo Restaurants International [KFC Pizza Hut and Taco Bell].

Gilded Age Created Super-Wealthy Americans and their Extremely Large Homes

Cornelius Vanderbilt at one point controlled 10 percent of all the money in circulation in the United States.

By Jim O’Neal

A recent New York Times edition has a follow-up story on America’s most expensive house – a 38,000-square-foot beauty listed at $250 million. The current all-time record is believed to be an East Hampton estate that sold for $147 million in 2014, followed by a California house that sold for $117.5 million in 2013. Apparently, there is another Bel Air project under construction that would dwarf all of these at $500 million.

This may seem like a modern-day phenomenon, but it hardly compares with the late 19th century – “The Gilded Age” – when truly vast fortunes were accumulated to the point it required “creative spending,” and real estate was a favored target. The Vanderbilts were a prime example, as shipping and railroad magnate Cornelius Vanderbilt stood out among other famous names of the day, such as Morgan, Astor, Rockefeller, Mellon and Carnegie. At one point, “Commodore” Vanderbilt (as he liked to be called) personally controlled 10 percent of all the money in circulation in the United States.

Naturally, all these wealthy Americans built homes on a grand scale. Grandest of all were the Vanderbilts. They built 10 mansions in New York alone, all on 5th Avenue, one with 137 rooms. And everyone built more palatial homes outside the city, particularly in Newport, R.I. The super-rich even had the nonchalance to call them “cottages,” despite the fact that they were so big even the servants needed to have servants.

This gaudy ostentation generated such widespread disapproval that a Senate committee seriously considered introducing legislation to limit how much a person could spend on a house (but not how many). These were the days when John D. Rockefeller made $1 billion a year (adjusted for inflation) and paid no income tax. No one did. Congress tried to introduce a 2 percent income tax over $4,000 in 1894 and the Supreme Court promptly ruled it unconstitutional.

Warren Buffet thinks we are better off today since rich folks back then couldn’t buy televisions, luxury cars (with GPS), cellphones, jet travel, microwaves, talking movies, air conditioners, Starbucks lattes … or lifesaving CT scans, organ transplants or statins/vaccines – since they didn’t exist. All they had was money.

So like the Commodore’s grandson George Washington Vanderbilt, they turned to real estate and homes. This Vanderbilt heir decided to build a cottage of his own in 1888, when he was still in his 20s. He bought 130,000 acres in North Carolina and built a rambling 250-room mansion. He hired 1,000 workers to build a dining room with a 75-foot ceiling that seated 76. The estate had 200 miles of road and included a town complete with schools, a hospital, churches, banks, a railroad station and shops for 2,000 employees and their families. The surrounding forests were logged for timber and the many farms produced fruit, vegetables, eggs, poultry and livestock.

He had planned to live there part-time with his mother, but she died before it was complete. So he lived there alone until he finally married and had a daughter. Then he died.

As F. Scott Fitzgerald supposedly once said to Ernest Hemingway: “The rich are different from you and me.” To which Hemingway replied, “Yes, they have more money.” (And thus a famous quote/counter-quote myth was born … with many variations.)

Intelligent Collector blogger JIM O’NEAL is an avid collector and history buff. He is president and CEO of Frito-Lay International [retired] and earlier served as chairman and CEO of PepsiCo Restaurants International [KFC Pizza Hut and Taco Bell].

Chicago World’s Fair was More Than a Ferris Wheel, Buffalo Bill and Commemorative Coins

1893-worlds-columbian-exposition-admittance-ticket — A group of 18 World’s Columbian Exposition tickets, including this scarce Benjamin Franklin piece, realized $1,265 at a January 2011 Heritage auction.

By Jim O’Neal

In 2003, bestselling author Erik Larson wrote The Devil in The White City, a non-fiction narrative of a serial killer who murdered up to 200 people using the 1893 World’s Columbian Exposition (the Chicago World’s Fair) as a backdrop. Leonardo DiCaprio reportedly has the film rights and Martin Scorsese will direct.

There was a lot of competition for the fair between Chicago and New York City. NYC bolstered their bid when Cornelius Vanderbilt, William Waldorf Astor and J.P. Morgan pledged $15 million in support. But Chicago prevailed by matching the $15 million from Marshall Field, Philip Armour and Gustavus Swift (of meatpacking fame, who sold “Everything but the squeal,” a highly effective slogan highlighting how they used all animal parts to make other products and eliminate pollution).

However, what sealed the deal was a pledge by Lyman Gage, president of the powerful First National Bank of Chicago, to provide millions of dollars to help finance exhibitors. Gage would later serve as the 42nd Secretary of the Treasury under both William McKinley and Teddy Roosevelt.

Chicago was eager to host the event and demonstrate how much progress they had made after the disastrous Fire of 1871 involving Mrs. O’Leary’s cow. They painted so many stucco buildings white and had new electric lights illuminating so many streets that they earned the nickname “The White City.” They successfully conveyed the image of fresh, sanitary and new. There was also a major initiative called City Beautiful that included cleaning up trash in streets, empty lots and alleys.

A major mistake they made was denying William Frederick Cody (“Buffalo Bill”) permission to perform his famous Wild West Show. Ever the shrewd businessman, he simply set up shop outside the fairgrounds and siphoned off customers. However, the fair’s shaky finances received a big boost when Pittsburgh-based bridge maker George Ferris debuted his new invention – a 264-foot-tall Ferris Wheel. It could accommodate 2,160 people at a time and with a fare of 50 cents (double the cost of a fair ticket), it bailed out the fair and wiped out a big budget deficit.

The federal government also pitched in with the introduction of the country’s first postcards, a new commemorative stamp, and two new commemorative coins. One was a quarter featuring Queen Isabella – who financed the voyage of Columbus. It was the first time a U.S. coin honored a woman. The other was the 50-cent commemorative Columbus coin, both still popular with coin collectors today. The entire fair was an homage to Columbus, celebrating his voyage 400 years earlier, despite being one year late.

On July 12, American historian Frederick Jackson Turner skipped the Wild West Show and the docking of a replica from Norway of a Viking ship – just two of the hundreds of events that attracted up to 28 million spectators to the fair. Turner opted to put some finishing touches on his thesis before delivery at the Art Institute of Chicago that night.

More on his historic speech in my next post.

Intelligent Collector blogger JIM O’NEAL is an avid collector and history buff. He is President and CEO of Frito-Lay International [retired] and earlier served as Chairman and CEO of PepsiCo Restaurants International [KFC Pizza Hut and Taco Bell].