Robert Fulton
early years of
Hudson River
Steamboats
1807 - 1824
Hudson River
Steamboats
before the Civil War
1824 - 1860
Hudson River
Day Line
1863 - 1948
Hudson River Steamboats
1824 - 1860 (Before the Civil War)
Many new steamboats were rapidly introduced on the Hudson River after
the Gibbons v Ogden Supreme Court decision.
Not only for the New York City to Albany service, but for steam ferries
across the river and local steamboat service for many towns. This was
a time of technological innovations. New ideas and new designs were built,
and the size, speed, and comfort of steamboats dramatically increased.
This was also a period of bare-knuckled capitalism. Cornelius Vanderbilt
and Daniel Drew, names that by the end of the 19th century were deservedly
included in that rogue's gallery of "robber barons," got their start in
the Hudson River steamboat business.
 "American Steam Vessels" by Samuel Ward Stanton Smith & Stanton, New York, 1895 Samuel Ward Stanton was the preeminent marine artist of the 19th century, and we are indebted to him for publishing illustrations of the early steamboats. |
Cornelius Vanderbilt, the "Commodore," began in 1818 by operating a steam ferry owned by Thomas Gibbons between New Jersey and New York. Vanderbilt remained in Gibbons' employ for eleven years, learning the steamboat business and accumulating his savings. In 1829, Vanderbilt entered the steamboat business on his own by establishing service between New York City and Peekskill.
Daniel Drew used Vanderbilt's boats to reach his home in Carmel, and was much impressed with Vanderbilt's operation. Drew was so impressed, that he started the 'People's Line' to compete with Vanderbilt. Vanderbilt fought the newcomers, and fares dropped to 12½ cents. But when Vanderbilt realized Drew would not be run off by a rate war, he offered to purchase Drew's assets in the People's Line.
Drew sold his holdings, and Vanderbilt re-established his monopoly and high fares on the New York City to Peekskill run. Drew's stockholders, who had subscribed to the People's Line to break Vanderbilt's monopoly, were outraged and betrayed. But this was just a forecast of Drew's future financial manipulations in steamboats and railroads.
The North River Association was an organization of steamboat owners that controlled the steamboats and fares on the Albany to New York City run. If anyone dared to compete with them, they would slash their fares until the competitor gave up. If this didn't work, they would buy out the competitor and restore their high fares. Vanderbilt entered steamboats in competition with the Association and operated them so successfully that the Association felt compelled to buy him out. Daniel Drew recognizing Vanderbilt's deal, bought two boats to compete with the North River Association.
After a year, Daniel Drew was invited to join of the Association and share in their profits. While a member of the Association, Drew secretly bought another boat through a dummy company and placed it into competition with the Association's boats. At director's meetings, Drew would suggest that the Association buy out the new competitor. Eventually, the director's authorized Drew to negotiate with the owner and buy him off. Drew consulted with himself, raised the director's offer, and sold his dummy company to the Association
But that wasn't the end of it. Drew wanted to control the entire Association. He quarreled with the directors, resigned, and set up a rival business called the People's Line. The Association, already weakened by Drew's competition and deceit, sold out to Drew by 1845. Ruinous fares were restored, and Drew recovered everything he had lost in the fight.
The profits again invited competition and fares dropped. A new trick was introduced when $1.50 fares were charged for one night and 50 cents for the next. Travelers were often fooled when a 50 cents night became a $1.50 fare without notice. Those who had made their plans complained bitterly, but paid the price. Fares fell to 25 cents and then to no price at all. This was not as ruinous as it appears, for once a passenger was on board, prices for staterooms and meals were raised to cover the loss on fares.
Methods used to attract passengers were often unethical. Towns were plastered with steamboat posters. Runners for rival lines raced about the waterfront to secure passengers and their baggage, and their compensation was based on the number of shanghaied passengers. Sometimes passengers went by one line and their bags by another. Husbands were separated from wives. Nervous old ladies, worried about boiler explosions, were glibly told that the runner's boat "had no boilers."
Another common practice was to assure potential passengers that the steamboat would stop at town, but then pass the town forcing the passenger to find another boat to get back to his destination. One letter writer wrote:
"There does not appear to be any regard to faith or honor in some who conduct the travelling trade . . . I would not stand in the mean position of making a living by any trickery upon the travellers for the best boat on the waters. But the fellows have got so callous to it, that it has become second nature to them."
When there was competition, fares dropped. With no competition, fares were raised to the maximum that the traffic would bear. Competitors were beaten off, run off or bought off.