#55 Tycoons War How Cornelius Vanderbilt Invaded a Country to Overthrow Americas Most Famous Military Adventurer

In "Tycoon's War," Cornelius Vanderbilt's relentless pursuit of victory and wealth is paralleled with the opportunistic and trust-misplacing William Walker. Vanderbilt, known for his cunning and ruthless business tactics, was unforgiving to those who crossed him, unlike Walker, who naively trusted the wrong people. When Walker, a military adventurer, seizes Vanderbilt's property in Nicaragua, he ignites a personal war. Vanderbilt, who strategically outmaneuvers his business rivals Morgan and Garrison, ultimately defeats Walker by funding Central American allies and employing various attack vectors. Walker, underestimating his adversary, meets his end, executed on a Honduran beach, while Vanderbilt, undeterred by setbacks, continues to amass a fortune, transitioning his focus from steamships to railroads, cementing his legacy as America's richest man.

• Vanderbilt was driven by a desire to make money and win, often prioritizing victory over immediate financial gain.
• He possessed an insatiable desire for conquest, willing to go to great lengths except murder.
• Vanderbilt and Walker shared traits of opportunism and resilience in adversity, seeking long-term success.
• They were both loyal to their allies, earning lifelong loyalty from close associates.
• Walker was sometimes too trusting, often placing his trust in unreliable individuals.
• Vanderbilt was a superior judge of character compared to Walker.
• Walker would exile those who crossed him, while Vanderbilt would seek to conquer his adversaries.
• Vanderbilt's method of conquest often involved making deals with former enemies, except for Walker, who was not a businessman.
• Walker used war and law as tools for his short-lived successes and did not fear Vanderbilt to his detriment.

"Vanderbilt was only interested in two things, making money and winning. Often, he temporarily subjugated the need for the former to achieve the latter. Vanderbilt had an unquenchable thirst for conquest."

This quote highlights Vanderbilt's primary motivations and his strategic approach to achieving his goals, emphasizing his willingness to delay financial gain for ultimate victory.

• The book "Tycoon's War" discusses how Cornelius Vanderbilt invaded a country to overthrow William Walker, America's famous military adventurer.
• The narrative explores the conflict between Vanderbilt and Walker, detailing their personalities, strategies, and the eventual clash.
• The podcast aims to delve into the mistakes made by Walker in his confrontation with Vanderbilt.

"Tycoon's war, how Cornelius Vanderbilt invaded a country to overthrow America's most famous military adventurer."

The quote introduces the central theme of the book, setting the stage for the historical conflict between two powerful figures of the era.

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• Vanderbilt met with Secretary Clayton to propose a new route for transporting gold rush participants.
• He criticized the existing Panama route for its cost and duration.
• Vanderbilt proposed a shorter and cheaper route through Lake Nicaragua.
• He aimed to secure exclusive rights from the Nicaraguan government for his transportation services.
• Vanderbilt's strategy included leveraging his steamship business to capitalize on the California gold rush.

"I can make money at $300 crossing my passengers by Lake Nicaragua, a route 600 miles shorter."

Vanderbilt's quote showcases his business acumen and his plan to undercut competitors by offering a more efficient and cost-effective route for gold rush participants.

• William Walker was highly educated, becoming a doctor at 18 and later obtaining a law degree.
• Despite his academic achievements, Walker's career path shifted from medicine to law and eventually to journalism.
• His motivations were influenced by personal tragedy and a search for more impactful work.
• Walker's intelligence and education contrasted with Vanderbilt's practical business experience.

"By age twelve, William had mastered Greek and Latin, and his father took him to the University of Nashville, proposing the boy to be admitted."

This quote illustrates Walker's early academic prowess and the unusual trajectory of his education, which led to advanced degrees at a young age.

• Vanderbilt was undeterred by obstacles and was determined to realize his vision for the Nicaraguan route.
• He maintained secrecy about his business missions, even from his wife.
• Vanderbilt personally oversaw the resolution of issues, such as the impassable rapids in the San Juan River.
• His hands-on approach and determination were key to his business success.

"Cornelius Vanderbilt would see about that. He would not let a few rocks stand in the way of making a fortune in Nicaragua."

This quote demonstrates Vanderbilt's relentless pursuit of his business interests and his refusal to be hindered by challenges.

• Walker moved to San Francisco and became a newspaper editor.
• His writing led to personal disputes, resulting in several duels.
• Walker's confrontational approach to conflicts was indicative of the times and his character.

"Walker gets involved in several of these duels."

This statement briefly mentions Walker's involvement in duels, reflecting the violent and personal nature of disputes during that period.

• Walker and Graham engaged in a gunfight where both men fired their revolvers simultaneously.
• Walker was shot twice in the leg, which ultimately led to him falling to the ground.
• Walker's resilience was highlighted as he refused to go down after the first shot and attempted to continue the duel.
• The referee intervened after Walker was incapacitated, instructing Graham to put away his weapon.

"Up came the two heavy revolvers. Both men fired at the same time. Walker missed with his round, but immediately took a .44 slug in the leg."

This quote describes the intense moment of the duel, emphasizing the simultaneous firing and the immediate consequence for Walker, who was hit in the leg.

• Walker is depicted as no stranger to violence and is described as a mastered swordsman.
• He was involved in multiple duels, though the outcomes of these duels are not clearly stated.
• His familiarity with firearms is noted, reflecting the norms of the time period.

"Walker is no stranger to violence. He's actually, like a mastered swordsman. Gotten a bunch of duels."

The quote highlights Walker's history with violent encounters and his skill with weaponry, setting the stage for understanding his character and actions in the context of the era.

• Vanderbilt is initially described as frugal, a point emphasized in a previous podcast.
• Contrasting his frugality, Vanderbilt constructed a private pleasure ship larger than any other at the time, for exclusive use by him and his relatives.
• Vanderbilt's first vacation was a four-month cruise to Europe on this luxurious ship.

"Cornelius Vanderbilt builds a private pleasure ship that was bigger than any other boat in the world."

This quote contrasts Vanderbilt's reputation for frugality with an act of extreme extravagance, revealing the complexity of his character.

• Vanderbilt's first vacation was significant, not just personally but also in terms of his business dealings.
• Before departing, he assured his friend Jacob van Pelt that his investments were secure and highly profitable.
• The Nicaraguan transit business was immensely profitable for Vanderbilt but not for the Nicaraguan government, which received none of the promised profit share due to Vanderbilt's financial maneuvering.

"I've got 11 million invested, better than any other 11 million in the United States."

Vanderbilt's confidence in his investments is evident in this quote, indicating his belief in the superiority and security of his financial position.

• The book "A Guide to the Good Life: The Ancient Art of Stoic Joy" by William B. Irvine is mentioned, referencing Seneca's point that vices are contagious.
• The concept of humans as 'copy machines' is introduced, suggesting the importance of being mindful of the ideas one is exposed to and the company one keeps.
• Walker is influenced by his idol, Sam Houston, and attempts to emulate his path to power.

"Vices are contagious. And I would say almost everything are contagious, meaning you have to be careful what the ideas you expose yourself to and who you keep around you."

This quote stresses the idea that human behavior is often influenced by external factors, including the behavior and ideas of those around us.

• Walker admired Sam Houston, who was a lawyer, congressman, governor of Tennessee, and eventually the president of the Republic of Texas.
• Houston's success in creating a new nation from Mexican territory served as a blueprint for Walker's ambitions.

"William Walker starts copying. This is his idol, this guy named Sam Houston."

Walker's emulation of Houston is noted in this quote, indicating his aspirations to achieve similar feats of leadership and nation-building.

• While Vanderbilt was on vacation, partners Morgan and Garrison manipulated transit company stock to their advantage.
• Vanderbilt's various revenue streams are mentioned, highlighting his extensive business interests.
• Morgan and Garrison attempted to cut off Vanderbilt's income by altering company stock arrangements and ceasing his 20% revenue skim.

"During Vanderbilt's european absence, Morgan and Garrison collaborated to manipulate transit company stock in their favor."

This quote outlines the betrayal Vanderbilt faced while he was away, setting the stage for his subsequent actions against Morgan and Garrison.

• Vanderbilt's aggressive business strategies are detailed, including undercutting competitors' prices and using his private yacht for commercial purposes.
• He sought to ruin Morgan and Garrison by manipulating stock prices and eventually aimed to regain control of the transit company using their own funds against them.

"I'll ruin you. Yours truly, Cornelius Vanderbilt."

Vanderbilt's direct and threatening approach to business disputes is encapsulated in this quote, revealing his determination and ruthlessness.

• Walker is characterized as egotistical and unwilling to take advice, a trait that ultimately contributes to his downfall.
• His reliance on the law and misunderstanding of Vanderbilt's disregard for it led to a conflict that would result in Walker's defeat.
• Walker's intellectual accomplishments did not translate into practical wisdom or understanding of real-world operations, as illustrated by his actions in Nicaragua.

"Walker never took advice, but always gave commands and they must be obeyed."

This quote reflects Walker's authoritative and inflexible personality, which is a significant factor in his eventual failure and inability to effectively navigate his challenges with Vanderbilt.

• Cornelius Vanderbilt was actively buying up stock to regain control of his company.
• He played the stock market slyly, like a card game, and was determined to ruin Charles Morgan and Cornelius Garrison.
• The war in Nicaragua depressed the price of Accessory Transit Company stock, allowing Vanderbilt to purchase shares at a lower cost.
• Vanderbilt was quietly and discreetly buying shares, building his and his allies' shareholding.
• He was close to overthrowing Morgan and Garrison and resuming control of the company.

"In the meantime, he's buying up stock to regain control. And it says, Cornelius played cards the same way he did business, slyly, expertly, and for keeps." This quote highlights Vanderbilt's strategic approach to business, comparing it to his card-playing skills, implying that he was both cunning and skilled in his endeavors.

• Garrison, threatened by Vanderbilt's moves, sent his son to Nicaragua to negotiate with William Walker.
• He aimed to shut out Vanderbilt by making a deal over the transit route.
• Garrison's plan involved petitioning Walker to cancel the contract with the country of Nicaragua, now that Vanderbilt had regained control.
• Garrison was described as intractable and slippery, with a reputation for being tricky.
• The deal would involve Garrison and partners operating a shipping line, with Walker revoking Vanderbilt's company's contract due to alleged financial breaches.

"Garrison was as intractable as a crocodile and as slippery as an eel." This quote describes Garrison's character and his reputation for being difficult and deceitful, which is relevant as it sets the stage for his countermove against Vanderbilt.

• By the end of 1855, Vanderbilt and allies had a controlling shareholding.
• Vanderbilt was elected a director along with his sons-in-law, while Morgan and Garrison were ousted.
• Garrison sought to influence Walker to cancel Vanderbilt's contract, leveraging the war situation to his advantage.
• Walker, misjudging the situation, considered Vanderbilt's legal counsel, Joseph L. White, as the leading mind of the corporation, not realizing Vanderbilt himself was in control.
• Garrison proposed that the Nicaraguan government seize transit company assets, including steamers and buildings, as part payment for unpaid commissions.

"The commodore had not yet ruined his enemies as he promised, but there was enough time for that." This quote indicates Vanderbilt's long-term strategy and patience in dealing with his adversaries, showing that he was not in a rush but was determined to achieve his goal of ruining them.

• Vanderbilt terminated all services to Nicaragua, crippling Walker's ability to get supplies and recruits.
• He fought a war on multiple fronts, buying up dumped shares and shorting the stock to make a profit.
• Vanderbilt's actions led to a rise in the company's stock price, and Morgan, seeing the impact, shorted the stock, making a substantial profit when the share price dropped.

"Cornelius Vanderbilt had struck a first blow in this war against William Walker." This quote emphasizes Vanderbilt's aggressive and decisive action in the conflict with Walker, showing his willingness to take bold steps to gain an upper hand.

• Central American countries formed an alliance against Walker, motivated by both Walker's actions and Vanderbilt's financial support.
• Vanderbilt armed and financed the allied armies, demonstrating his willingness to invest heavily in his personal vendetta against Walker.
• Despite the initial lack of action from the allied armies, Vanderbilt was determined to find another way to defeat Walker.

"For Vanderbilt, this was not business. It was personal." This quote captures the essence of Vanderbilt's motivation in the conflict with Walker, highlighting the personal nature of the battle rather than purely business interests.

• Garrison offered Vanderbilt a partnership to make him an ally rather than an enemy, but Vanderbilt refused.
• Despite public criticism for his strategy, Vanderbilt had been secretly profiting from his idle steamships through a deal with competitor William Aspinwall.
• Vanderbilt continued to apply pressure on Morgan by running steamers to the Gulf of Mexico, competing directly with Morgan's line.

"Vanderbilt sitting on the other side of the table. Didn't even have to think it over." This quote reflects Vanderbilt's quick decision-making and his resolve not to partner with his long-time rivals, Garrison and Morgan, despite their offer.

• Vanderbilt's persistence and creativity are highlighted throughout the transcript.
• He never gave up on a problem and looked for creative solutions.
• His strategies included leveraging political influence, forming alliances, and making strategic deals to profit from seemingly disadvantageous situations.

"The commodore had paid a visit to his competitor, William Aspinol, the head of the Pacific mail line, and made a deal with him." This quote illustrates Vanderbilt's strategic thinking and ability to turn competition into opportunity, securing a profitable arrangement with a rival.

• Vanderbilt authorized Costa Rican soldiers to recover his assets and close communication routes used by Walker.
• He provided arms and ammunition to the Costa Rican army but refused to pay Spencer and Webster unless they succeeded in removing Walker.
• Upon Walker's departure from Nicaragua, Spencer and Webster would receive $50,000 each from Vanderbilt.

"He said he would authorize them to recover transit company steamers, meaning his assets on the San Juan river and its tributaries, and to close the river to communication by Walker, meaning cut off one of his routes."

This quote explains Vanderbilt's strategic move to authorize Costa Rican soldiers to take back his assets and disrupt Walker's supply routes, showcasing his tactical approach to problem-solving.

• Cornelius Vanderbilt demonstrated persistence and pragmatism in his approach to achieving goals.
• He tried various strategies to defeat Walker, showing flexibility in tactics.
• The lesson highlighted is the importance of persistence, frugality, and pragmatism in pursuing any goal.

"But there's a bunch of examples in the book that he just kept trying different things, and a lot of them failed, but he didn't care. He just kept persisting."

This quote emphasizes Vanderbilt's relentless pursuit of his objectives, regardless of the setbacks, underlining the significance of persistence in success.

• Vanderbilt hired British mercenaries to attack Walker's forces.
• He orchestrated a multi-pronged strategy involving various groups and nations to ensure Walker's defeat.
• Walker underestimated his opponent, not realizing the extent of Vanderbilt's influence and determination.

"Cornelius also hires a bunch of British mercenaries, to go down there again... He's applying this to something that I would not recommend engaging in, but we can apply it to any kind of goal that we have."

This quote highlights Vanderbilt's use of mercenaries as part of his broader strategy to defeat Walker, showing his willingness to employ diverse tactics.

• Walker's strict principles led to the dismissal of valuable officers despite being outnumbered.
• Vanderbilt's influence reached the US Navy, which played a role in the conflict under the guise of protecting American citizens.
• Walker's last hope was Lockridge's 500 men, which was thwarted by an explosive trap set by Vanderbilt's mercenaries.

"Walker fails to realize he is at war with someone who has no regard for rules."

This quote captures Walker's critical mistake of underestimating his adversary's ruthlessness, which ultimately led to his downfall.

• The US Navy brokered a deal for Walker's surrender, allowing him to return to the United States instead of being executed by Central American forces.
• Walker's subsequent attempts to reclaim power in Nicaragua were thwarted by both US and British forces, leading to his eventual capture and execution by the Hondurans.

"The US Navy that's down there brokers a deal with the central american allies and says, hey, listen, if we can get Walker to... They want Walker to surrender, but they want to kill him."

This quote describes the delicate negotiations that led to Walker's surrender and temporary reprieve from execution, only for him to face a fatal end in a later attempt to regain power.

• After defeating Walker, Morgan, and Garrison, Vanderbilt shifted his focus to railroads.
• He accumulated significant interests in key railroad lines and built New York City's first Grand Central terminal.
• Vanderbilt's investments in railroads solidified his status as the richest man in America.

"Steamships had made Vanderbilt wealthy, but railroads made him the richest man in America."

This quote summarizes the transition from steamships to railroads that ultimately amplified Vanderbilt's wealth and cemented his legacy, as evidenced by his statue outside Grand Central Station.

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