John McDougal Atherton (April 1, 1841 – June 5, 1932) was an American businessman, property developer, economist, investor and politician based in Louisville, Kentucky. Atherton was elected to one term as a member of the Kentucky House of Representatives from 1869 to 1871, and served as a Democrat. 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, the son of Peter Atherton and Elizabeth Mayfield (1808–1885). His father, Peter Lee Atherton, died aged seventy-three, when John was three years old. His mother soon remarried.
Atherton attended St. Joseph School in Bardstown, Kentucky; followed by Georgetown College and the University of Louisville School of Law.
Whiskey distiller and advocate
Prior to Prohibition, Atherton was a sour mash and sweet mash whiskey distiller. He entered this profession early on in his career.
His stepfather, Marshall Key (1806–1877), was 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. J. M. Atherton Company was founded in 1867, although the Atherton whiskey brand was marketed from November 30, 1866. His stepfather, Marshall Key was his first business partner and they engaged in making sweet mash whisky for the next 8 years. It is likely there were other investors. Cochran & Fulton, a wholesale liquor dealers from Louisville purchased his stepfathers interests in the Atherton distillery in 1875. However, Atherton remained the sole owner of the A. Mayfield Distillery Company which produced sour-mash whisky. Cochran & Fulton acquired a 50% share in operations but not the property assets. Eventually by 1880 the wholesale liquor dealers became Cochran, Fulton and Atherton. The partnership was eventually dissolved and a settlement reached.
His portfolio of whiskey brands included: “Atherton” (from 1867), “Mayfield” (from 1869), “Windsor“, “Clifton“ and “Howard”, “Carter” and “Kenwood”, “Brownfield” and “Baker”.
Atherton incorporated his business in 1881, as president and his son as vice president.
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. 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. The other distilleries were William Miller & Co, named after his bookkeeper, which produced fire copper whisky under the Windsor brand, and S. O’Brien & Co, named after his distiller, which produced sour-mash under the Clifton brand.
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), Atherton was subject to some controversy when the Whiskey Ring scandal erupted and was first reported in the New York Times in 1882. His son Peter Lee Atherton (1862–1939) entered the family business in 1883, although legally he had been company Vice President two years prior at the age of 18.
He was a founding director of the Kentucky Distillers Association. He opposed constitutional prohibition and in 1886 was a founder and first president of the National Protective Association.
By 1888 Atherton was prominent distiller. The whiskey scandal continued for the following decade with Atherton testifying to a congressional committee headed by William Windom on July 27, 1888. 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:
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 in the 1890s, and Athertonville, Kentucky grew up around this location, with a courthouse and a school. Soon after, the town was named in his honor.