John Jacob Astor

John Jacob Astor

John Jacob Astor
Portrait by John Wesley Jarvis (c. 1825)
Born Johann Jakob Astor
(1763-07-17)July 17, 1763
Walldorf, Baden-Württemberg, Germany
Died March 29, 1848(1848-03-29) (aged 84)
New York City, U.S.
Resting place
Trinity Church Cemetery, Manhattan
Residence New York City, U.S.
Nationality German; U.S. from 1789
Occupation Merchant, businessman, investor, fur trader
Known for First multi-millionaire in the United States
Net worth Increase Estimated US $110.1 billion in 2006 dollars[1]
US $20 million at the time of his death (approximately 1/107 of US GNP)[2]
Religion Reformed[3]
Spouse(s) Sarah Cox Todd
(m. 1785–1834; her death)
Children
Parents Johann Jacob Astor
Maria Magdalena Vorfelder
Relatives John Jacob Astor III (grandson)
William Backhouse Astor, Jr. (grandson)
Charles Astor Bristed (grandson)
Signature

John Jacob Astor (July 17, 1763 – March 29, 1848), born Johann Jakob Astor,[4] was a German-born American businessman, merchant, fur trader, and investor who was the first prominent member of the Astor family and the first multi-millionaire in the United States. He was the creator of the first trust in America. He emigrated to England as a teenager and worked as a musical instrument manufacturer.

Astor moved to the United States after the American Revolutionary War, He entered the fur trade and built a monopoly, managing a business empire that extended to the Great Lakes region and Canada, and later expanded into the American West and Pacific coast. Seeing the decline of demand, he got out of the fur trade in 1830, diversifying by investing in New York City real estate and later becoming a famed patron of the arts.

Contents

  • Early life and family 1
  • Emigration to the US 2
  • Marriage and family 3
  • Fraternal organizations 4
    • Fortune from fur trade 4.1
    • Real estate and retirement 4.2
    • Last will and legacy 4.3
  • See also 5
  • References 6
  • Further reading 7
  • External links 8

Early life and family

John Jacob Astor was born in

Preceded by
Unknown
Richest man in the United States
?–1848
Succeeded by
William Backhouse Astor, Sr.
  • John Jacob Astor Business Records at Baker Library Historical Collections, Harvard Business School
  • The Waldorf Astoria Hotel
  • The "Astorhaus" in Germany, now a museum
  • German Society of the City of New York
  • , Author Washington Irving full text (pdf)Astoria
  • Frontline show
  • Texts on Wikisource:
    • "Astor, John Jacob, an American merchant".  
    • "Astor, John Jacob, American merchant".  
    • "Astor, John Jacob". The New Student's Reference Work. 1914. 
    • "Astor, John Jacob".  
    • "Astor, John Jacob".  
    • "Astor, John Jacob. An American merchant".  
    • "Astor, John Jacob".  
    • "Astor, John Jacob".  

External links

  • Ebeling, Herbert C. Johann Jakob Astor zum 150. Todestag. Walldorf: Astor-Stiftung, 1998.
  • Ebeling, Herbert C. Johann Jakob Astor - Ein Lebensbild. Walldorf: Astor-Stiftung, 1998.
  • Ebeling, Herbert C. W. O. Horn: Johann Jacob Astor - Ein Lebensbild aus dem Volke, für das Volk und seine Jugend. Walldorf: Astor-Stiftung, 2004.
  • Smith, Arthur Douglas Howden. John Jacob Astor, Landlord Of New York. Philadelphia: J.B. Lippincott, 1929.
  • Youngman, Anna. "The Fortune of John Jacob Astor," Journal of Political Economy, Part 1: vol. 16, no. 6 (June 1908), pp. 345–368; Part 2: vol. 16, no. 7 (July 1908), pp. 436–441; Part 3: vol. 16, no. 8 (Oct. 1908), pp. 514–530. Part 1, Part 2, and Part 3 in JSTOR.
  • Waldrup, Carole Chandler. More Colonial Women: 25 Pioneers of Early America. McFarland, 2004

Further reading

  1. ^ a b "The All-Time Richest Americans". Forbes.com. September 14, 2007 .
  2. ^ Klepper, Michael; Gunther, Michael (1996), The Wealthy 100: From Benjamin Franklin to Bill Gates—A Ranking of the Richest Americans, Past and Present,  
  3. ^ a b Reformed Congregation James Parton, Life of John Jacob Astor: To which is appended a Copy of his last will (The American News Comp., 1865), pg. 81
  4. ^ Jacob was always written with a 'c' in the records of Walldorf's Reformed Church, but Walldorf's Rev. Georg Speyer spelled the name with a 'k' in his laudatio for Astor's 50th death-ceremony. From then on that spelling was used in Astor's hometown. (see Herbert C. Ebeling. Johann Jakob Astor zum 150. Todestag, 1998, p. 2).
  5. ^ Johnson, Rossiter (ed.) (1904). The Twentieth Century Biographical Dictionary of Notable Americans. Boston: The Biographical Society. pp. unpaginated. Retrieved 2009-06-07. ASTOR, John Jacob, merchant, was born at  
  6. ^ "John Jacob Astor". Harper’s New Monthly Magazine (Harper's Magazine Co.) 30: 308–323. 1865. Retrieved 2009-06-07. 
  7. ^ "Maria Vorfelder". MyTrees.com. 
  8. ^ Herbert C. Ebeling: Johann Jakob Astor - Ein Lebensbild. pp. 63-69.
  9. ^ a b  
  10. ^ Herbert C. Ebeling. Johann Jakob Astor - Ein Lebensbild, p. 141.
  11. ^  
  12. ^ "Famous Masons". MWGLNY. January 2014. 
  13. ^  
  14. ^ "The Opium Kings: Opium Throughout History".  
  15. ^ Burrows, Edwin G.; Wallace, Mike (1998). Gotham A History of New York City to 1898. Oxford University Press. p. 337. ISBN 978-0-19-511634-2
  16. ^ In 's richest AmericansFortune Magazine, with an estimated wealth at death of $20,000,000, Astor's Wealth/GDP ratio equalled 1/107.
  17. ^ Life, December 12, 1960, p.16
  18. ^ Based on a New York spot price $1,336 on January 31, 2011
  19. ^ "Warum heißen die so? Heute: FC Astoria Walldorf" (German). Fussball.de. December 8, 2011. Retrieved December 9, 2011.

References

See also

In 1908, when the association football club FC Astoria Walldorf was formed in Astor's birthplace in Germany, the group added "Astoria" to its name in his, and the family's, honor.[19]

The pair of marble lions that sit by the entrance of the New York Public Library at Fifth Avenue and 42nd Street were originally named Leo Astor and Leo Lenox, after Astor and James Lenox, who founded the library from his own collection. Next, they were called Lord Astor and Lady Lenox (both lions are males). Mayor Fiorello La Guardia renamed them "Patience" and "Fortitude" during the Great Depression.

Astor left the bulk of his fortune to his second son William, because his eldest son, John Jr., was sickly and mentally unstable. Astor left enough money to care for John Jr. for the rest of his life. Astor is buried in Trinity Church Cemetery in Manhattan, New York. Many members of his family had joined its congregation but Astor remained a member of the local German Reformed congregation to his death.[3] Herman Melville used Astor as a symbol of men who made the earliest fortunes in New York in his novella, Bartleby, the Scrivener.

In his will, Astor bequeathed $400,000 to build the Astor Library for the New York public (later consolidated with other libraries to form New York Public Library), and $50,000 for a poorhouse and orphanage in his German hometown of Walldorf. The Astorhaus is now operated as a museum honoring Astor and serves as a renowned fest hall for marriages. Astor donated $25,000 to the German Society of the City of New York, whose chairman he was from 1837 until 1841. Also, he bequeathed $30,000 for a professor's chair in German literature at Columbia University, but due to differences he had with the deanship, he erased this donation from the testament.

At the time of his death in 1848, Astor was the wealthiest person in the United States, leaving an estate estimated to be worth at least $20 million. His estimated net worth, if calculated as a fraction of the U.S. gross domestic product at the time, would have been equivalent to $110.1 billion in 2006 U.S. dollars, making him the fifth-richest person in American history.[1][16] An estimate based on inflation from the legally-set American gold standard rate of $21 per ounce in the 1850s[17] would result in a much more conservative net worth of $1.272 billion in 2011[18] dollars.

Last will and legacy

In the 1830s, Astor foresaw that the next big boom would be the build-up of New York, which would soon emerge as one of the world's greatest cities. Astor withdrew from the American Fur Company, as well as all his other ventures, and used the money to buy and develop large tracts of Manhattan real estate. Astor correctly predicted New York's rapid growth northward on Manhattan Island, and he purchased more and more land beyond the then-existing city limits. Astor rarely built on his land, and leased it to others for rent and their use. After retiring from his business, Astor spent the rest of his life as a patron of culture. He supported the ornithologist John James Audubon in his studies, art work and travels, and the presidential campaign of Henry Clay.

Astor began buying land in New York in 1799 and acquired sizable holdings along the waterfront. After the start of the 19th century, flush with China trade profits, he became more systematic, ambitious, and calculating by investing in New York real estate. In 1803, he bought a 70-acre farm that ran west of Broadway to the Hudson River between 42nd and 46th streets. That same year, and the following year, he bought considerable holdings from the disgraced Aaron Burr.[15]

Real estate and retirement

In 1804, Astor purchased from Vice President Aaron Burr, Jr. what remained of a 99-year lease on property in Manhattan. At the time, Burr was serving under President Thomas Jefferson and desperately needed the purchase price of $62,500. The lease was to run until 1866. Astor began subdividing the land into nearly 250 lots and subleased them. His conditions were that the tenant could do whatever they wish with the lots for twenty-one years, after which they must renew the lease or Astor would take back the lot.

Astor's business rebounded in 1817 after the U.S. Congress passed a Washington Irving in his travelogue Astoria. Astor's commercial connections extended over the entire globe, and his ships were found in every sea.[9]

Astor's fur trading ventures were disrupted during the War of 1812, when the English captured his trading posts. In 1816, he joined the opium-smuggling trade. His American Fur Company purchased ten tons of Turkish opium, then shipped the contraband item to Canton on the packet ship Macedonian. Astor later left the China opium trade and sold solely to England.[14]

The U.S. Embargo Act in 1807, however, disrupted Astor's import/export business because it closed off trade with Canada. With the permission of President Thomas Jefferson, Astor established the American Fur Company on April 6, 1808. He later formed subsidiaries: the Pacific Fur Company, and the Southwest Fur Company (in which Canadians had a part), in order to control fur trading in the Great Lakes areas and Columbia River region. His Columbia River trading post at Fort Astoria (established in April 1811) was the first United States community on the Pacific coast. He financed the overland Astor Expedition in 1810–12 to reach the outpost. Members of the expedition were to discover South Pass, through which hundreds of thousands of settlers on the Oregon, Mormon, and California trails passed through the Rocky Mountains.

Astor took advantage of the Jay Treaty between England and the United States in 1794, which opened new markets in Canada and the Great Lakes region. In London, Astor at once made a contract with the North West Company, who from Montreal rivaled the trade interests of the Hudson's Bay Company, then based in London. Astor imported furs from Montreal to New York and shipped them to Europe.[13] By 1800, he had amassed almost a quarter of a million dollars, and had become one of the leading figures in the fur trade. His agents worked throughout the western areas and were ruthless in competition. In 1800, following the example of the Empress of China, the first American trading vessel to China, Astor traded furs, teas, and sandalwood with Canton in China, and greatly benefited from it.

Fortune from fur trade

Astor was a Freemason, and served as Master of Holland Lodge #8, New York City in 1788. Later he served as Grand Treasurer for the Grand Lodge of New York. [12]

Fraternal organizations

  • Magdalen Astor (1788–1832), who married Rev. John Bristed (1778–1855), mother of Charles Astor Bristed (1820–1874)
  • Sarah Todd Astor (1790–1790), stillborn
  • John Jacob Astor, Jr. (1791–1869), sickly and mentally unstable
  • William Backhouse Astor, Sr. (1792–1875), who married Margaret Rebecca Armstrong (1800–1872), daughter of Senator John Armstrong, Jr. (1758–1843) and Alida Livingston (1761–1822); they had seven children including John Jacob Astor III (1822–1890) and William Backhouse Astor, Jr. (1829–1892)
  • Dorothea Astor (1795–1874)
  • Henry Astor II (1797–1799), died in infancy
  • Eliza Astor (1801–1838)
  • unnamed son (1802–1802), died within a few days of being born

They had eight children:

On September 19, 1785, Astor married Sarah Cox Todd (1762–1834), the daughter of Scottish immigrants Adam Todd and Sarah Cox.[10] Although she brought him a dowry of only $300, she possessed a frugal mind and a business judgment that he declared better than that of most merchants. She assisted him in the practical details of his business.[11]

Marriage and family

Henry was also a horse racing enthusiast, and purchased a thoroughbred named Messenger (horse), who had been shipped from England to the United States in 1788. The horse became the founding sire of the Standardbred breed in the US; it became the primary breed used for trotters and pacers.

Astor immigrated to New York City in the United States in March 1784, just after the end of the Revolutionary War. His second brother Henry had preceded him to New York, establishing a butcher shop with which Astor was initially involved. He began trading furs with Native Americans and in the late 1780s started a fur goods shop in New York City. He also became the New York agent of his brother's musical instrument business.[9]

Emigration to the US

[8]