10 Reasons the Vanderbilts Lost the World’s Greatest Fortune

10 Reasons the Vanderbilts Lost the World’s Greatest Fortune

Larry Holzwarth - August 3, 2018

10 Reasons the Vanderbilts Lost the World’s Greatest Fortune
Vanderbilt mansions line Fifth Avenue in New York, Easter, 1900. Wikimedia

Buying Acceptance

When Alva Vanderbilt succeeded in being accepted into New York society after her costly ball in the Fifth Avenue mansion it triggered a spending spree among the other Vanderbilts. Alva’s acceptance did not immediately extend to the others of the large Vanderbilt family, and they began to build mansions of their own. One of the first to do so was her own father-in-law, William Vanderbilt, to whom the bulk of the Commodore’s wealth had been bequeathed.

When William Vanderbilt began building his Fifth Avenue mansion, one of several which would be erected by various Vanderbilts, he was the wealthiest person in the world, and according to his own words, frustrated by his wealth. Vanderbilt lamented that his wealth brought him no happiness and instead led to much worry, distrust of friends, bickering within the family, and ultimately to his own poor health.

William also resented the burden thrust upon him by being the recipient of the majority of the Vanderbilt fortune, and after considering the strain imposed on him by his father’s bequest, decided not to follow the Commodore’s model, and divided the Vanderbilt wealth equally among his heirs in his own estate. Following his lead, which was following Alva’s, the Vanderbilt’s went on a frenzy of building expensive mansions and summer homes.

The summer homes remained empty for most of the year but required year round staffing for maintenance of the buildings and grounds, stables and horses. The staffing increased when the various Vanderbilts were in residence. The costs were enormous, and the various members of the family had no problem with spending the money earned by the Commodore and his son William. The core of the fortune shrunk, reducing its earning power.

It wasn’t only houses on which the growing family spent its money. Yachts, including steam yachts, race horses, racing cars, luxury cars, expensive furnishings, and dozens of other luxuries enjoyed by the Commodore’s descendants and their spouses quickly demolished the fortune. Although but one of the Fifth Avenue mansions avoided the wrecking ball (most demolished by 1930) many of the country estates and cottages survived.

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