John McDougal Atherton


John McDougal Atherton, was an American businessman, property developer, economist, investor and politician based in Louisville, Kentucky. Prior to Prohibition, he was a distiller of sour mash whiskey. Atherton was elected to one term as a member of the Kentucky House of Representatives from 1869 to 1871, and served as a Democrat.

Early life

John McDougal Atherton was the son of Peter Atherton and Elizabeth Mayfield. He was born in LaRue County, Kentucky, on April 1, 1841.
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.
His paternal grandfather, Aaron Atherton, 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. 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 had been operating a small distillery on the banks of Rolling Fork River at Knob Creek for over thirty years. Peter and Aaron’s legacy survived and passed to John. Aaron Atherton’s home
in Hodgenville, KY was deemed to be of significance and was admitted to the National Register of Historic Places.
John McDougal Atherton’s father, Peter Atherton, died aged seventy-three, when John was three years old. His mother, Elizabeth remarried, and his stepfather, Marshall Key, 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.

Education

He attended school locally at Saint Joseph's, Bardstown, Kentucky, followed by Georgetown College, Kentucky and then Louisville Law School.

Career as a distiller

J. M. Atherton Whiskey

Atherton became involved in the Whiskey distillery business early in his career. He founded his own company in 1867 at the age of twenty six, in partnership with his stepfather, and other partners. Within ten years he became the largest employer on LaRue County with over 200 employees. The Atherton Hotel opened and soon after the town was named Athertonville, Kentucky in his honor.
The vicinity around the distillery prospered until prohibition.
He moved his young family from Athertonville to Louisville in 1873. By 1882, at the age of 41, he had acquired a total of four distilleries in LaRue County, which combined, made him the biggest Bourbon producer in the United States. His two distilleries in Athertonville were Mayfield and Atherton, and were located on opposite sides of Knob Creek.
His whiskey brands included “Atherton”, “Mayfield”, “Windsor“, “Clifton“ and “Howard”, “Carter” and “Kenwood”, “Brownfield” and “Baker”.
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, he was subject to some controversy during the Whiskey Ring scandal and testified to a congressional committee headed by William Windom on July 27, 1888. This was first reported in the New York Times on Jun 2, 1882 and the scandal continued for the following decade.
He 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 12th, 1899.

Campaign against prohibition

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, gathering pace during his fathers lifetime.
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.
He campaigned for other distillers, his peers and business partners, even after he diversified his business interests away from Whiskey.
As a native of Kentucky with so much pride in being at the birthplace of bourbon whiskey and the former owner of many distilleries, he would have been deeply saddened by the 1918 vote to ban alcohol.
He witnessed first hand Prohibition gathering pace. 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 remained in place until Dec 5th 1933. One year after his death.

Other business and civic interests

Banking

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, 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.

Infrastructure development within Kentucky and adjacent states

He was made director of the Louisville Gas & Electric in 1884. In 1898 he was elected to the board of directors of the Louisville & Nashville Railroad Company, along with twelve other individuals.
Prior to that he built his own depot and connected the line from New Haven, KY with an L&N railroad spur. The town of Athertonville, Kentucky grew up around this location. His son, Peter Lee Atherton, as part of the Jefferson Highway Association, received his direction on the need to build up Kentucky’s overland transportation links in order for the region to prosper and remain competitive.

Real estate

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, and Mr. Atherton. Most prominent in terms of size within downtown Louisville, was the Atherton Building, formerly located at 610 S. Fourth Street. Later renamed as the Francis Building, until it was demolished in 1979.

Political career

He was a was a member of the Kentucky House of Representatives from 1869 to 1871, serving as a Democrat.
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.
A Democrat all his life, in the 1920s he gave 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.

Personal life

On October 24, 1861 he married Maria B. Farnam, the daughter of his professor and moved to Louisville, Kentucky in 1873. When Atherton's stepfather died in 1877, he was buried in the same plot as Atherton's biological father, and his older brother, Peter M., who died in 1862. His mother was also buried there upon her death in 1885.
In 1905 John McDougal Atherton moved to 2542 Ransdell Avenue in the fashionable Cherokee Triangle area of Louisville.
He was a founding member of the Pendennis Club, Louisville Jockey Club and the Big Spring Country Club.
His son, Peter Lee Atherton, was also a businessman and state legislator; he became known as the “Father of the Jackson Highway“. His financial affiliations were numerous. He married Mary, had a child and eventually divorced. His second wife, Cornelia Anderson, was the daughter of Dr Turner Anderson. They married in New York City in 1914. They had 4 children; Valerie, Sarah, Cornelia and John M.

Later years

By 1903 his son Peter Lee Atherton was fully empowered both as a legislator and in business. Seelbach Realty Company was incorporated that year, the company that owned and leased out the Seelbach Hotel.
In the 1920s he began setting up a number of trusts, transferring control of other parties, particularly to his son Peter, however since his son died less than seven years after his death. A taxation question arose 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.

Death

Atherton died on Jun 5, 1932. 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.
He is buried in Cave Hill Cemetery, Louisville, a stones throw away from other Whiskey Barons, such as George Garvin Brown, Paul Jones, Julian P. Van Winkle and Frederick Stitzel.
LaRue County, where he built upon his father and grandfathers distillery legacy, is still, after 102 years, firmly a prohibition or dry county.

Legacy and philanthropy

During his long life Atherton amassed a substantial estate. His son Peter Lee
Atherton continued the business affairs but died in 1939. As a recent wealthy widow, his daughter-in-law, Cornelia A. Atherton sponsored the USS Atherton, following the tragic loss of her son in 1942, Lt. John M. Atherton, a Line Officer onboard USS Meredith 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 the Japanese in 1955. Cornelia Atherton is listed as Mrs Peter Lee Atherton in the Principal Women of America.