In 1848, everyone was
heading for California. Why? Because there was gold. Many went by Clipper Ship taking the route
around Cape Horn. Clippers were fast and
could get from New York City to California in 90 days. But it was expensive as Clippers were not
designed for cargo. Some New York
steamship operators planned to use the route to Panama and then to San
Francisco using steamships. This cut the
journey from 90 days to 35 days. But I
had an even better idea! I studied maps
of Central America for hours and came up with the best and shortest route to
California. I decided to use Lake
Nicaragua and the San Juan River as fast routes to the Pacific Ocean. I created the Accessory Transit Company in
1851 and gave $10,000 to the Nicaraguan government to use their waters. I personally steered the steamboat up the San
Juan River and to Lake Nicaragua. As I
went to test the route, I cleared the water path, stationed a steamboat on Lake
Nicaragua, and built a road between the shores of San Juan del Sur. I also constructed a port on the coast of the Pacific Ocean.
My route to California was altogether 600 miles. I cut my fare from the usual $600 to
$400. Although the US government funded
a $5,000 mail service from New York to California, I did it for free. Of course I won the competition and had great
customers. I eventually lowered my price
to $150- still making a great profit. I
switched some of my steamboats to the Panama route but was paid $672,000 to
stay out of the Panama route for a year.
I started business in the Atlantic in 1855. There were two major competitors-
Cunard(British) and Collins(American). Of
course I started out with my usual routine by cutting fares. I made my ships very sturdy and
reliable. I spent $600,000 on a large
ship I named the Vanderbilt. I am proud
to say it was the largest ship ever built on the Atlantic Ocean. I used only the best material and made sure
it was fast. I only took 9 days and one
hour to get from Sandy Hook to Isle of Wright.
When Congress rejected the subsidy to Collins they went bankrupt and my
only competitor was the British William Inman Line. It is important to know that the Cunard and
Collins used wooden ships and paddle wheels.
But the Inman and I used iron. I
was a major success in the steamboat business!
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