John McDougal Atherton

John McDougal Atherton (1841–1932), was an American businessman,[1] property developer, economist, investor and politician based in Louisville, Kentucky.[2] Atherton was elected to one term as a member of the Kentucky House of Representatives from 1869 to 1871, and served as a Democrat.[3] As a third generation distiller, he was best known for Atherton Whiskey, a brand he owned until 1899.

Early life

He was born in LaRue County, Kentucky, on April 1, 1841,[4] the son of Peter Atherton and Elizabeth Mayfield.[5]

Education

He attended Saint Joseph's in Bardstown, Kentucky; followed by Georgetown College, Kentucky and Louisville Law School.

Whiskey distiller and advocate

Prior to Prohibition, Atherton was a sour mash whiskey distiller.[6] He entered this profession early on in his career.[7]

Distillery owner

J. M. Atherton Company was founded in 1867, when Atherton was 26 years old. His stepfather, Marshall Key was his partner.[8] It is likely there were other investors. Over a 10-year period the number of employees increased to 200, making the company the largest employer in LaRue County. Other business enterprises followed. The Atherton Hotel opened, and Athertonville, Kentucky grew up around this location, with a courthouse and a school.[9] Soon after, the town was named in his honor.[10]

His portfolio of whiskey brands included: “Atherton” (from 1867), “Mayfield” (from 1869), “Windsor“, “Clifton“ and “Howard”, “Carter” and “Kenwood”, “Brownfield” and “Baker”.[11][12]

At the age of 41, in 1882 he had acquired a total of four distilleries within LaRue County, which combined, made him the biggest Bourbon producer in the United States.[13] His two distilleries in Athertonville were Mayfield and Atherton, and were located on opposite sides of Knob Creek, a short distance from Knob Creek Farm, the birthplace of Abraham Lincoln.[14] His son Peter Lee Atherton (1862–1939) entered the family business.

In 1882 he relocated J. M. Atherton Company headquarters to Whiskey Row, Louisville on 125 W Main St. This historic area of the city is now referred to as West Main District, Louisville. At the height of its capacity the company used 2,200 bushels of grain and produced 6,600 gallons of Whiskey. His maximum storage capacity at Athertonville, Kentucky was 150,000 gallons.

As a distiller and as a director of the Distillers and Cattle Feeders' Trust (more commonly known as the Whisky Trust), he was subject to some controversy when the Whiskey Ring scandal erupted and was first reported in the New York Times in 1882.[15]

By 1888 Atherton was prominent distiller.[16][17] The whiskey scandal continued for the following decade with Atherton testifying to a congressional committee headed by William Windom on July 27, 1888.[18][19][20] During his testimony Henry Smith, representative for Wisconsin asked whether the cheep rectifier whiskeys made by large scale mid-Western manufacturers had any redeeming qualities. Atherton responded with sarcasm:

“I have not been in the habit of drinking cheap whisky and I could not tell you that. You may know more about it than I do”

[21]

Atherton eventually sold all his stock in J. M. Atherton Company to the Kentucky Distilleries & Warehouse Company in 1899, in order to focus on his real estate business. This was reported in the New York Times on May 12, 1899.[22]

Spokesman for the distilling industry

Anti-alcohol fervor ran strong and dry forces successfully promoted Prohibition as a solution for many societal ills. This movement had been gathering pace for nearly a century, during his own fathers lifetime.[23]

He was a founding director of the Kentucky Distillers Association. He opposed constitutional prohibition and in 1886 was a national founder and first president of the National Protective Association.

Ultimately the never-ending campaign by the dry forces movement was a factor when he made a business decision in 1899 to dispense of his controlling stock in the J M Atherton Company. However, he continued to represent “community interest”, of the distillers, his business partners, and former employees, even after he diversified his business interests, writing letters to newspapers arguing against the Eighteenth amendment.[24] He would have been deeply disappointed by the 1918 vote. The vicinity around the distillery had prospered greatly.[25]

He witnessed first hand the momentum of the Temperance movement gathering pace leading up to Prohibition; the immediate loss of jobs and the impact on the local economy. Agents raided the prestigious Pendennis Club, of which he was a founding member, confiscating large amounts of alcohol. There was also an increase in the acts of lawlessness, like thefts of whiskey from private establishments by gun-wielding bandits. Prohibition was enacted in 1919, and would remain in place the rest of his life. Although prohibition continued until December 5, 1933, one year after his death, LaRue would remain a dry county.

Banker & Real Estate

Atherton had vast real estate holdings within Kentucky and served on several boards of directors. He served as the president of Lincoln Savings Bank and Trust Company. However, in 1881 he was elected to the board of the Bank of Kentucky (later rebranded Kentucky National Bank), located at the heart of the central business district at 300 West Main Street, Louisville. He became its director, a position he held until 1928. The seven story building was known for its Richardsonian Romanesque architecture designed by the McDonald Brothers (architects).

He was a Director of the Louisville Realty Company and owned many buildings in the city. The Western Union main office stood at 405-409 W. Market Street, adjacent to the Lincoln Savings Bank, both were built on land he owned, and were in a long succession of architectural commissions linking Alfred S. Joseph (of Joseph & Joseph), and Mr. Atherton. Most prominent in terms of size within downtown Louisville, was the Atherton Building,[26] formerly located at 610 S. Fourth Street. Later renamed as the Francis Building, until it was demolished in 1979.

His financial affiliations were numerous. By 1903 his son was fully empowered in the business. Seelbach Realty Company [27] was incorporated that year, the company that owned and leased out the Seelbach Hotel.

In the 1920s Atherton began setting up a number of trusts, transferring control of other parties, to his only son. However, when his son died less than seven years after his own death, a taxation question arose,[28] and some cases, particular the ownership of the Atherton Building, which housed the H.P. Selman Department store would not be settled until the mid-1940s.

Politician

He was a was a member of the Kentucky House of Representatives from 1869 to 1871, serving as a Democrat.[29]

Atherton was an active participant in Kentucky's agenda build up Kentucky's overland transportation links in order for the region to prosper. His son, Peter, was also a businessman and state legislator, and became known as the “Father of the Jackson Highway“,[30] having formed part of the Jefferson Highway Association between 1911 and 1918.

A Democrat all his life, in the 1920s he gave a speech at the Kentucky Democratic convention entitled "The Drop of Sweat." relating to the issue of free silver. He was in favor of the gold standard.

Railroad enterprises

A few years earlier he had built his own depot and connected the line from New Haven, KY with a Louisville & Nashville railroad spur.

In 1898 he was elected to the board of directors of the Louisville & Nashville Railroad Company, along with twelve other individuals.[31] He was clear candidate, since he had already been a director of the Louisville Gas & Electric since 1884.[32]

Civic roles

He was also chairman of the City Government Committee, which studied municipal reform and was a member of the Louisville Board of Education in 1884. In the 1920s he was the head of the committee making a 25-page report making recommendations to reorganize local government in Louisville.

He received Civic Recognition in 1924 when the Louisville Board of Education named a new school J. M. Atherton High School for Girls, in honor of his work in furthering education for Kentucky.[33]

Memberships

He was a founding member of the Pendennis Club, Louisville Jockey Club and the Big Spring Country Club.

Personal

On October 24, 1861 he married Maria B. Farnam, the daughter of his professor. He moved to Louisville, Kentucky in 1873. They had a child together. In 1905, John McDougal Atherton moved to 2542 Ransdell Avenue in the fashionable Cherokee Triangle area of Louisville.

Family

His father, Peter Atherton, died aged seventy-three, when John was three years old. His mother, Elizabeth (née Mayfield) (1808–1885) remarried, and his stepfather, Marshall Key (1806–1877), became highly influential in his life and this guardianship encouraged many high-profile distillery ventures, enabling him to build his first distillery at the age of 26. His stepfather died in 1877 and was buried in the same plot as Atherton's biological father, and his older brother, Peter M.,[34] who died in 1862. His mother, Elizabeth Atherton Key was also buried there upon her death in 1885.

During his long life Atherton had amassed a substantial estate. His son [35] continued the business affairs but died in 1939. As a recent wealthy widow, his daughter-in-law, Cornelia A. Atherton sponsored the USS Atherton,[36] following the tragic loss of her son in 1942, Lt. (jg.) John M. Atherton [37][38](1918-1942), a Line Officer onboard USS Meredith (DD-434) torpedoed and sunk during the Asiatic-Pacific Theater of World War II on October 25, 1942. A few years later she was recognised as a Gold Star Mother. Ironically USS Atherton was transferred to Japan in 1955.[39]

Death

Atherton died on June 5, 1932.[40] His wife, Maria, has died 14 years earlier.

Legacy

He was regarded by many historians to be a person of importance to the Commonwealth of Kentucky. Some also refer to him as a pre-prohibition Kentucky Whiskey Baron.[41] He is buried in Cave Hill Cemetery, Louisville, a stone's throw away from other Whiskey Barons, such as George Garvin Brown, Paul Jones, Julian P. Van Winkle and Frederick Stitzel, as well as the most influential people of Louisville.

Ancestry

His paternal grandfather, Aaron Atherton (1745–1821), was part of a group of settlers who travelled through the Cumberland Gap, led by Samuel Goodwin, who in 1780 founded Goodin or Goodwin Fort, as a frontier settlement of Virginia.[42] It was a time of sieges and skirmishes with local tribes, with the settlement being raised in July 1781. Following the American Revolutionary War more settlers arrived. By the time Kentucky established statehood over this area, Aaron and his son, Peter Atherton (1771-1844) had been operating a small distillery on the banks of Rolling Fork River at Knob Creek for over thirty years, since around 1790 making them one of the first whiskey pioneers of Kentucky [43]

Peter and Aaron's legacy survived and passed to John. Aaron Atherton's home[44] in Hodgenville, KY was admitted to the National Register of Historic Places.[45][46]

His maternal great grandfather was Alexander McDougall, a merchant and privateer, a Sons of Liberty leader from New York City, who served as a General during the Revolutionary War and on cessation of hostilities became the first President of the Bank of New York.[47]

See also
  • Atherton family papers held by the Filson Historical Society (1901-1939)

References
  1. Polk Johnson, E. (1912). "A history of Kentucky and Kentuckians: The Leaders and Representative Men in Commerce, Industry and Modern Activities, Volume 2".
  2. John E. Kleber (2001). The Encyclopedia of Louisville - entry for J. M. Atherton. p. 52. ISBN 0813121000.
  3. Wallis, Frederick A; Tapp, Hambleton. "A sequis-centennial history of Kentucky; a narrative historical edition ... preserving the record of the growth and development of the commonwealth, and chronicling the genealogical and memorial records of its prominent families and personages".
  4. "Filson Historical Society". Atherton Family Papers, 1901-1939.
  5. "Atherton One Name Study entry for J M Atherton".
  6. Sweetser, Moses Foster (1892). "King's Handbook of the United States".
  7. "Bourbon Enthusiast: Reference to J Atherton's partnership in the Headley and Farra distillery established in 1858".
  8. Michael R. Veach - Kentucky Bourbon Hall Of Fame Historian and Author (2020). "Bourbon Barron J M Atherton".
  9. "Louisville distiller J. M. Atherton built a distillery on the Rollin Fork River on the eastern edge of the county, and later ran a rail spur to the village, naturally named Athertonville".
  10. "LaRue County HomePage:J M Atherton - Founder of Athertonville".
  11. Hibbs, Dixie & Settles, Doris (2016). Prohibition in Bardstown: Bourbon, Bootlegging & Saloons. ISBN 9781439656235.
  12. "List of 16 whiskeys marketed by J M Atherton".
  13. Raitz,Karl (17 March 2020). Making Bourbon: A Geographical History of Distilling in Nineteenth Century. ISBN 9780813178776.
  14. Carl Howell; Don Waters (1998). Hardin and LaRue Counties: 1880-1930. ISBN 9780738542829.
  15. "Alleged Whisky Ring Corruption Fund Examined by U.S. Senator William Windom's Committee. He denied any improper influences..declined to give names. outcome unknown. Reported in the New York Times: June 2 1882".
  16. Murray, Jim (1997). The Complete Guide to Whiskey: Selecting, Comparing, and Drinking the World's Great Whiskeys. ISBN 9781572431515.
  17. Murray, Jim (1997). Jim Murray's Complete Book of Whiskey: The Definitive Guide to the Whiskeys of the World. ISBN 9781858684949.
  18. Karl Raitz (5 November 2019). Bourbon's Backroads: A Journey through Kentucky's Distilling Landscape. ISBN 9780813178455.
  19. A Congressional committee convened on July 27, 1888 to question John M. Atherton, Thomas H. Sherley and Joseph B. Greenhut, all members of the Distillers and Cattle Feeders' Trust, more commonly known as the Whisky Trust. Their questions encompassed all aspects of the distilling industry and the Whisky Trust. OCLC 61330750.
  20. "Pre-Prohibition Bourbon Baron: J M Atherton".
  21. Raitz, Karl (5 November 2019). Atherton testimony related within Bourbon's Backroads. ISBN 9780813178448.
  22. "BIG SALE OF KENTUCKY WHISKY. The Trust Buys Out J. M. Atherton & Co.'s Stock. Reported in the New York Times: May 12, 1899 Edition".
  23. Fernald, James Champlin (1890). "The Economics of Prohibition".
  24. "J M Atherton And Peter Lee Atherton". Peter Lee Atherton and J M Atherton.
  25. The Birth of Bourbon: A Photographic Tour of Early Distilleries. 25 September 2015. ISBN 9780813165851.
  26. "Atherton Building". Pictures of the Atherton Building, 466 River City Mall, Louisville, KY from the 1930s.
  27. "Poor's Manual of Industrials; Manufacturing, Mining and Miscellaneous Companies". 1914. p. 890.
  28. "Citizens Fidelity Trust Company versus Commonwealth - Court of Appeals of Kentucky, March 25, 1949".
  29. "Journal of the House of Representatives of the Commonwealth of Kentucky - Retrieved 22 December 2019". Printed in 1871. 1871.
  30. Automobile industry and trade (1916), Motor Age, Volume 29
  31. Porter, John Sherman (1922). "Louisville Rail Company - J M Atherton role".
  32. Allison, Young Ewing (1887). "The City of Louisville and a Glimpse of Kentucky, refers to Louisville Gas Company".
  33. "Portrait of J M Atherton".
  34. "Atherton One Name Study".
  35. "J M Atherton And Peter Lee Atherton". Peter Lee Atherton and J M Atherton.
  36. The Courier-Journal, Louisville, Kentucky (1943). "Newspaper article "Escort Vessel Named for Louisville Hero"".CS1 maint: multiple names: authors list (link)
  37. "Portrait of businessman and civic leader (whom J. M. Atherton High School for Girls was named), John M. Atherton and grandson, John M. Atherton II of Louisville, Kentucky".
  38. "Picture of Lt. (jg.) John M. Atherton".
  39. "Mrs Peter Lee Atherton (nee C Anderson), Principal Women of America". 1936.
  40. John McDougal Atherton at Find a Grave
  41. "Cave Hill: The Resting Place Of Louisville's Spirits industry Leaders (incl. J M Atherton)". 2005.
  42. Rotherham, Otto Arthur (1953). "The Filson Club History Quarterly, Volumes 27-28".
  43. Tramazzo, John C. (2018). Bourbon and Bullets: True Stories of Whiskey, War, and Military Service. ISBN 9781640121034.
  44. "National Register:J M Atherton grandfather Aaron Atherton's House in Hodgenville, Kentucky - Retrieved 22 December 2019". National Parks Gallery.
  45. "National Register: J M Atherton grandfather Aaron Atherton's House in Hodgenville".
  46. "National Register: Atherton Carriage House, Woodside Rd,Louisville".
  47. "JOHN M. ATHERTON, BANKER, DIES AT 91; Formerly Served in Kentucky Legislature Long Active in Civic Affairs of Louisville. ONCE A LEADING DISTILLER' Turned Over Holdings ta a Corporation in 1899 and Devoted Himself to Realty and Finance".
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