Authors:
Historic Era: Era 4: Expansion and Reform (1801-1861)
Historic Theme:
Subject:
March 1989 | Volume 40, Issue 2
Authors:
Historic Era: Era 4: Expansion and Reform (1801-1861)
Historic Theme:
Subject:
March 1989 | Volume 40, Issue 2
If the Olympic Games demonstrate anything, it is that the urge to be the fastest lies deep in the human soul. And from the earliest days of humankind this urge has had its practical rewards beyond mere glory. The fastest caveman, after all, caught the most gazelles.
Today, the need to be the fastest lives on not only in individuals but in our business enterprises as well. All major automobile companies have invested heavily in racing at one time or another. They say, of course, that racing rigorously tests cars. But it helps mightily to sell them too. The corporate competition to win business by being the swiftest is not just an artifact of the automobile age, however. It goes back to the days of the Industrial Revolution in this country, when steamboats first appeared on American waterways.
Steamboating was always an intensely competitive business, and steamboat owners soon began trying to limit the competition in pricing by forming cartels and carving up markets. These cartels worked splendidly, at least from the owners’ point of view; one year the Hudson River Association was able to declare a dividend amounting to fully 70 percent of the owners’ invested capital.
The greatest of all the steamboat owners, however, Commander Cornelius Vanderbilt, had no objection to competing by means of price. Far from it. “Whenever his keen eyes detected a monopoly,” The New York Times wrote at his death in 1877, “he pounced down upon the offenders and literally drove them from the rivers. Nor did he, when he had vanquished them, establish a monopoly of his own. His principle of low rates, founded upon acute reasoning, was never violated, so that in every way the public were the gainers.” Of course, the Commodore was also always willing to withdraw from a particular run if he was paid enough by the opposition to do so. Usually the opposition was only too happy to oblige.
With the cartels often regulating the price of steamboat travel, competition among the owners was carried on by providing the greatest luxury and the fastest speed. This lust for speed frequently manifested itself in impromptu races between rival captains, which led to such obviously dangerous practices as unloading passengers at intermediate stops onto smaller boats while still under way, and even tying down the safety valves in order to extract the greatest possible pressure from the boilers.
All too frequently, the boilers exploded, often with great loss of life, and many boats took to towing behind them an auxiliary vessel in which passengers, for twice the customary price, could enjoy all the speed and luxury of steamboat travel without the danger of being blown to kingdom come.
Newspapers routinely reported new steamboat records and often egged on the competition, for the results made good copy no matter what happened. On May 26, 1847, the New York Herald ran a brief article under the headline SPLENDID