Book Review
I enjoyed Astor: The Rise and Fall of an American Fortune. The book traces the Astor family from John Jacob Astor’s arrival in America and his meteoric rise to become the nation’s wealthiest man, to the subsequent generations who both maintained and squandered the family’s vast fortune. Anderson Cooper’s narrative is engaging, making complex historical events and figures come alive. Astor: The Rise and Fall of an American Fortune is not just a family biography but also a broader commentary on American society and the nature of wealth. Here is a summary of the parts I found noteworthy.
Where it Started
While the book focuses on the Astor family, over a 200-year period, I found the story of John Jacob Astor most fascinating. As Cooper states, “…[i]t began with one young German immigrant, John Jacob Astor, the son of a butcher. It began – as great fortunes often do – with blood.” After immigrating to the United States in 1784, John Jacob Astor would end up cornering the beaver fur market, starting on the East Coast, expanding North and then West. Why beaver fur? Beaver fur could result with 800% markups. As a result, John Jacob Astor became a brutal and dominant force in the North American fur trade and a rich man.
John Jacob Astor invested his profits from the fur trade into New York City real estate. In the early 19th century, he bought large tracts of land in Manhattan, which was then rapidly developing. His investments in prime real estate in New York City significantly appreciated in value over time, contributing substantially to his wealth. Unfortunately, his real estate business model created New York City tenement housing where many immigrants would live in misery and despair. Despite his riches, even John Jacob Astor did have one regret. He stated, “[h]ad I to do it over again, I would have, you know, put every nickel I had in New York real estate.” John Jacob Astor was estimated to be the richest man in America at the time of his death in 1848.
Expansion and Social Influence
John Jacob Astor’s fortune did not dissipate overnight. Amazingly, John Jacob Astor’s son, William Backhouse Astor Sr., inherited a substantial portion of his father’s fortune and successfully grew the fortune. The wife of William Backhouse Astor Sr., Caroline Astor, played a crucial role in shaping and defining the socialite scene during the Gilded Age. The concept of high society and socialite gatherings existed before her time, but she was instrumental in formalizing and elevating it to new heights. She created a list called “The 400.” The 400 represented the number of people who could fit comfortably in Mrs. Astor’s ballroom, which became a benchmark for New York’s high society. The concept of The 400 exemplified the Astors’ belief in their responsibility to educate and refine the elite, shaping not just social interactions but also contributing to the cultural and philanthropic landscape of the city.
Interesting History
I enjoyed learning about historical events that occurred in New York City surrounding the Astors. I had never heard of the Astor Place Riot. Who could have imagined that a bitter family rivalry between cousins led to the creation of the Waldorf-Astoria? Peacock Alley and Mrs. Astor’s Bar was also new to me.
Apparenlty A Lot of Money Can Be Curse
While people dream of being rich, the Astors were beyond rich. It is hard to fathom, but apparently so much money can have its drawbacks. Imagine being born and someone else has already decided every aspect of your life – who you will befriend, what you will study, where you will work and who you will marry. Or imagine being so rich, you face constant scrutiny from the public. For instance, William Waldorf Astor born in 1848, the great-grandson of John Jacob Astor, while collecting $200 million dollars a year in rent, was not able to enjoy his life in New York – imagine being so rich and also being so unhappy. His run for US Congress was unsuccessful. He appeared to be surprised that people who lived in his slums did not like him. Personal conflict with his family and his dissatisfaction with American society led William to move (more like be exiled) to England in 1891. His departure marked a significant shift in the family’s history.
All Gone
Cooper references the saying “shirtsleeves to shirtsleeves in three generations.” This is a common expression that highlights the cycle of wealth creation and dissipation within a family over three generations. It suggests that the first generation works hard to build wealth, often starting from humble beginnings (shirtsleeves), the second generation maintains and possibly expands it, and the third generation squanders it, returning to the starting point of working in shirtsleeves.
While the Astor’s fortune was so large that it lasted more than three generations, the book highlights the struggles of later generations of Astors who found themselves adrift, lacking purpose, and often engaging in self-destructive behavior. Cooper does a good job in showing how fortunes, even as large of the Astors, can be improperly managed, spent and lost.