The richest American in the mid-1800s, Cornelius Vanderbilt, was fiercely competitive. He loved to race horses and play cards. And what he really loved was to beat challengers in business.

In the 1840s he was known as "The Commodore" for operating a line of steamships in the waters around New York City. In 1847 he launched an impressive new vessel, which he named for himself, calling it the Cornelius Vanderbilt.

Proud of his new ship, Vanderbilt challenged other ship owners to a race. Financier George Law, owner of a very fast steamship, the Oregon, took him up on a bet. The stakes would be $1,000, a trifle for either man. The point was really to show the public who ran the fastest boat on the Hudson River.

On June 1, 1847, a Tuesday morning, many thousands of New Yorkers crowded along the Hudson River docks. They got a show. Each ship was more than 300 feet long, with the paddle wheels on their sides powered by the latest in steam engine technology.

At 11 a.m. the Vanderbilt and the Oregon started sailing up the river, lashed together. A bell was rung on a nearby ship, the rope between them was cast off, and the race began.

The two ships, their paddle wheels furiously churning the water, ran close together for an hour and half. Commodore Vanderbilt, who had started his career piloting small boats in New York Harbor, was standing on the bridge of his own steamboat.

The point to turn around was 36 miles up the river.

The big ships were running so tightly together that, while trying to execute the turn, the Vanderbilt scraped against the side of the Oregon, causing some cosmetic damage.

The Oregon managed to turn around while losing little speed. The Vanderbilt had problems slowing down, turning, and then resuming speed and fell back noticeably. It was rumored that the crew of the Vanderbilt had gotten confused as the Commodore shouted orders from the bridge.

Heading back down the Hudson, the Oregon stayed out in front, but began to run out of coal as it neared New York City. The ship's captain ordered the crew to begin burning furniture to keep the steam engines fired.

As the Oregon lost speed, the Vanderbilt began to close the gap as the ships raced past cheering crowds along the Manhattan docks. But the Oregon held on, winning the race by about two minutes.

Commodore Vanderbilt, for once, had lost.

The "Great Steamboat Race" had been a fun diversion for New Yorkers, but it had no real effect on business. Commodore Vanderbilt continued to dominate the steamship business. And in time he would become known as one of the robber barons dominating American business.