Michigan Central Railroad Company Issued to Cornelius Vanderbilt - $5,000 - BondInv# AG1883 Bond
$5,000 5% Bond printed by American Bank Note Co., New York. Issued to Cornelius Vanderbilt. (1843-1899) Noted Financier and Head of the House of Vanderbilt in the third generation. He was the favorite grandson of Cornelius Vanderbilt, who left him $5 million, and the eldest son of William Henry Vanderbilt, who left him close to $70 million. In his turn he succeeded them as head of the New York Central and related railroad lines in 1885. He had a reputation as something of a workaholic, though a stroke in 1896 compelled him to reduce his active business involvement. Though retired from active control he took an advisory role in the many properties in which he, and the family, had made investments. Regarded as a capable and conservative railroad manager, and a splendid accountant; mastering the intricacies of the banking system during his association with the Shoe and Leather Bank of New York.
A bond is a document of title for a loan. Bonds are issued, not only by businesses, but also by national, state or city governments, or other public bodies, or sometimes by individuals. Bonds are a loan to the company or other body. They are normally repayable within a stated period of time. Bonds earn interest at a fixed rate, which must usually be paid by the undertaking regardless of its financial results. A bondholder is a creditor of the undertaking.