Cornelius Vanderbilt

The standard New York City–Albany fare was $3. In 1834, Vanderbilt challenged the Hudson River Steamboat Association, a powerful private group of owners that coordinated service and fares.

He put the Nimrod and Champion on the route as the People’s Line, charging $1. The fare war drove prices down to 50 cents, then 10 cents, and eventually zero.

Passengers could ride for free. Meals and drinks were sold separately, and meal prices rose. Those sales brought in revenue, but Vanderbilt’s line still lost money during the contest. The larger association, with more boats to support, was losing money faster.

The association eventually paid him $100,000 up front and $5,000 a year for ten years to withdraw from the route.

For travelers during the fare war, a trip that had cost $3 could now cost nothing.

On March 30, 1823, the Bellona reached the mouth of the Raritan River in a violent snowstorm. Vanderbilt commanded her for her owner, Thomas Gibbons. The boat stopped responding to its helm.

He brought her back to New Brunswick, but waves were breaking over the pier. He anchored and stayed aboard through the night. The next afternoon, his passengers were taken ashore in rowboats.

The planned voyage had failed. His work continued until his passengers reached shore.

In late 1817, Vanderbilt took command of Thomas Gibbons’s small steamboat, the Mouse. He already knew sailing. Steam gave him something new to master.

During the boat’s winter refit, he visited James P. Allaire’s engine works and inspected the Bellona under construction. He kept his own sailing business running, too.

He was learning the machinery while earning his living on the water. The winter refit became part of his practical education.