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John M. Atherton Testimony Before Congress

On July 17, 1888, John M. Atherton, the owner of the Athertonville Distillery, testified before a Congressional committee about the distilling industry and the bonding period for whiskey. There were several interesting questions and answers during this testimony and I thought these questions would be of interest today. 

The testimony starts with questions on how whiskey is made. Atherton describes the materials used and lists corn, rye and malt as the main grains and barrels as the other important material of the manufacture of whiskey. The following are some of the interesting questions about grain and barrels. 

Q. – Where do you buy your corn? 

A. – The corn used in Kentucky comes mainly from the west of the Ohio River. Very much of the corn used comes from the State of Kansas, and often from the State of Nebraska and from Illinois.

Q. – You do not go into the Chicago grain market or into any other central market to purchase? 

A. – No. We can not ship corn from Chicago to Louisville. It is too expensive. Our dealers in Louisville get it from interior points in the West and bring it directly to Louisville and Cincinnati.

Q. – Where does the rye come from? 

A. – From the West almost entirely; and the barley, too, from which the malt is made.

Q. – Do you get it as barley or as malt? 

A. – I do not believe there is a distillery in the State that malt their own grain; they buy it as malt. 

Q. – Where do they buy it generally? 

A. – Generally from Louisville and Chicago and points north of Chicago. As a rule there is very little barley grown in Kentucky. Some years ago in the bluegrass region there was some fine barley grown, out of which malt was made, but that is a very small part of the malt used in Kentucky by the distillers.

Q. – You have given us the articles which go into the manufacture of whisky. You also purchase barrels? 

A. – Barrels or the staves out of which barrels are made. Some distillers patronize the cooper shops where barrels are made for sale, and other distillers make their own barrels on their premises.

Q. – But in that case they buy the staves? 

A. – Yes, sir.

Q. – Where do the staves come from? 

A. – Almost entirely from Kentucky and Indiana.

This testimony gives us an interesting glimpse into the supplies used by Kentucky distilleries. It is interesting in how little has changed in the last 132 years. Distilleries are still getting most of their grain from what Atherton referred to as “out west” but the barrels are coming from a wider region that still includes Kentucky and Indiana, but also other States. Kentucky’s distilling industry has always played a huge role in the economies of other States. The testimony continues:

Q. Is there a difference between the process or the materials used in whisky which is called Kentucky whisky and the other class of whisky? 

A. – Yes, sir; there is a difference in the combination of the materials used. I may say here also that there is quite a good deal of whiskey made in Pennsylvania. There it is made of rye; there is very little Bourbon made in that state. There is some rye whisky made in Maryland. In the fine whiskies made for aging, more rye and malt are used, because its value when aged is a matter of as much consequence as the yield; while the distilleries that make cologne spirits and alcohol want yield principally, and the flavor cuts no part in the product. The result is that we use as a rule in Kentucky in our Bourbon whisky I presume 30 percent small grain. By small grain I mean rye and malt. We use 70% corn. North of the river they use the smallest percentage of rye and malt that will establish and maintain a fermentation, without reference to the effect it will leave on the quality of the whiskey when it is aged. 

This question shows that the distillers of Bourbon were more interested in flavor than yield. Atherton goes on to discuss some of the firms that he says are not making what is being called “fine whisky made for aging”. He states that these distillers are making what they consider a “pure product” but their market is not a fine aged whiskey. I find this testimony by John M. Atherton very enlightening as to what the business was like in the 1880s. There is much more testimony than I have transcribed here, including some of Atherton’s answers, so those who want to learn more can find his full testimony in the Congressional Record of this date.

Bourbon Barons – John M. Atherton

John McDougall Atherton was a prominent distiller in the 19th century. He built several distilleries, including the one in Athertonville, Ky. that later became part of the Seagram distilleries in Kentucky. He was also a leader in promoting education in Kentucky. To my knowledge, he is the only distiller in Kentucky to have a public high school named for him. 

John was born in 1841 to Peter Atherton and his wife, but Peter died while John was an infant. His mother and step-father, Marshall Key, raised him. His father had had a distillery, but it went silent after his death. John re-established the distillery in 1867 and soon became a well-respected distiller. The distillery made 7 barrels a day and prospered. John soon purchased a half interest in another distillery and quickly acquired the other half, buying out his partners. This distillery was known as the A. Mayfield and Co. distillery. Between 1880 and 1882, John built two more distilleries – Windsor and Clifton distilleries. His brands were:

  • Atherton 
  • Mayfield 
  • Windsor 
  • Howard 
  • Carter 
  • Kenwood 
  • Baker 
  • Clifton

In 1870, Atherton was elected to become a Kentucky State Legislator and soon became the chairman of the Democratic State Central Committee in Kentucky. He married Maria Farnam, the daughter of a professor at Georgetown College. He continued to grow his business and by 1899, he had a total production at all four distilleries of 350 barrels a day and warehousing for over 200,000 barrels.

John Atherton was well respected in the industry and in 1888, he testified before Congress as they dealt with increasing the excise tax on whiskey and extending the bonding period from 3 to 8 years. Atherton favored the increase in the tax. He believed that it would prevent overproduction and a fall in the price of barrels of whiskey. He did not believe the extended bonding period was necessary. He sold much of his whiskey to rectifiers – George Garvin Brown purchased his whiskey for Old Forester for example, so he was selling barrels within the then current 3 year bonding period. 

In 1899, Atherton sold all four of his distilleries to Kentucky Distilleries and Warehouse Company, part of the “Whiskey Trust”. He did not believe the “Trust” would succeed politically, but he sold anyway. Atherton was correct and soon the United States Government started breaking up trusts with the Sherman Anti-Trust Act. The trust would eventually become part of American Medicinal Spirits, which eventually became National Distillers.

Most of his distilleries did not survive Prohibition. The Atherton Distillery at Athertonville, became part of Seagram in Kentucky. With the Four Roses Distillery in Lawrenceburg, the Henry McKenna Distillery in Fairfield, the Four Roses Distillery in Louisville and the Seagram Distillery in Louisville, the Atherton Distillery made whiskey to support the Seagram blended whiskeys and supplied one of the five yeast strains they use today.

He moved to Louisville and with his son, Peter, entered the real estate business. He continued to have interest in the spirits industry and published several articles against Prohibition in the early 20th century. He also championed education in Kentucky. In the 1920s, the Louisville School Board decided to name a High School for him. Several local preachers protested this move since he had made his money in the distilling industry, but for every preacher who objected, there were several preachers who supported the idea. They recognized the good work Atherton had done for education in Kentucky.

John M. Atherton died in 1932. He left an impact on the industry that rivaled any of the other Bourbon Barons of his time. He was a leader not only in the industry, but also in politics and education.

From My Archive – Remarks Of Merit 1938-39

Schenley Distilleries created a newsletter for their employees. It started at their corporate headquarters in Cincinnati, Ohio in 1937. I am fortunate enough to have the bound volume of the newsletter Remarks Of Merit from January 1938 and January 1939. It is a fascinating collection of stories and I thought I would share some of its content on my blog.

One of the first articles in the January 1938 issue reported that Wathen Knebelkamp moves up from being the Chief Distiller (note: not master distiller, a term they did not use in 1938) to the Divisional Manager for Schenley

Knebelkamp was born near the Athertonville Distillery in Athertonville, Kentucky where his father was the distiller. In 1929, Knebelkamp went to work for American Medicinal Spirits and in 1932 he was in Charge of the Mt. Vernon Distillery in Baltimore. In the fall of 1933, Wathen moved back to Louisville and went to work under his father at the Sunnybrook Distillery. In 1934, Knebelkamp joined the newly created Bernheim Distillery as their distiller. Schenley purchased Bernheim in 1937 and in 1938 they placed him in charge of all of the Kentucky distilleries which included the Geo. T. Stagg and James E. Pepper Distilleries. As a side note, after the war Knebelkamp left Schenley to become the General Manager of Churchill Downs.

An article from the March 1938 issue is about the three generations of workers at the New England Rum Distillery in Covington. The New England Rum Distillery survived Prohibition by making denatured rum for the use of flavoring cigarettes. Schenley acquired the distillery in 1937. The three generations discussed are William Blank,Jr., who was the Distillery Supervisor, the position his father, William Blank Sr. had held for years. William Jr.’s son Arthur Blank worked as Assistant Supervisor under his father. The article includes a history of the family involvement at the distillery.

In May 1938, an article titled “Continuity” was published about Frank G. Stagg, the son of George T. Stagg, who was still working at the Geo. T. Stagg Distillery in Frankfort and George L. P. Squibb, the son of Fredrick Sqibb, who owned the Old Quaker Distillery starting in 1871. The article gives the history of their family involvement in the distilleries.

Not all of the articles focus on the executives of the Schenley distilleries. There is an article from June 1938 titled “Federal Agent”. This article is about Captain Paul J. Heckert, the Captain of Security at the Jos. S. Finch Distillery in Pennsylvania. Before coming to work at the Finch Distillery, Heckert was a bodyguard for President Hoover. The article tells Heckert’s story and includes a reproduction of an autographed photograph of president Hoover. 

The December 1938 issue has an article titled “Happy Days Are Here Again” that discusses the prosperity brought on with the Repeal of Prohibition. The article was written to celebrate the fifth anniversary or the passage of the 21st Amendment. It had been a hard five years with whiskey shortages hamstringing the growth of Schenley, but finally, the Company had four year old whiskey in plentiful supply and indeed, “Happy Days Are Here Again”. The article discusses how the company was growing and investing in the future.

These are just a few of the main articles found in the newsletters. There are many more articles describing the people and distilleries that made up the Schenley Corporation at that time. There are news articles reporting on some of the fun activities of the employees. This included baseball, basketball and leagues created for the employees. Schenley had trophies made and held tournaments between the distilleries. News also included many obituaries of employees. All told, these articles are for all employees – executives and workers, men and women. It is a very good newsletter for a very progressive company that would become the largest spirits company in the United States after the war. Full of history and interesting to read.

The Big Four Distilling Companies

After the Second World War, the distilling industry was growing at an astounding pace. The distilleries finally had aged whiskey that could compete with imported whiskey and rum. There were no limits on their ability to distill once the war was over and consumers were purchasing Bourbon and rye whiskey almost at pre-Prohibition levels. Out of this growth there were four companies that controlled over half of the production of whiskey in the United States. These companies were Schenley Distilleries, National Distillers, Hiram Walker and Seagram. How did they get to this status and what happened to them?

Schenley Distilleries was founded during Prohibition. Lewis Rosenstiel had acquired the Schenley Distillery in Pennsylvania and its license to sell medicinal spirits. He then began to acquire other distilleries for their brands and aging stocks. By the end of Prohibition Schenley had purchased the Geo. T. Stagg Distillery in Frankfort, Ky., the James E. Pepper Distillery in Lexington, Ky. and the Squibb Distillery in Lawrenceburg, Ind. They had also acquired the brands and existing stocks for the Jos. Finch rye and were looking to expand further. Within a few years after the end of Prohibition they expanded by purchasing the Bernheim, Distillery in Louisville, Ky., and the New England Rum Distillery in Covington, Ky. as well as purchasing the Geo. A. Dickel’s brand “Cascade” whiskey. During the war they began to acquire many smaller distilleries in Kentucky and elsewhere. By the end of the war they were the largest of the “Big Four” companies. Schenley survived until the death of Rosenstiel in the 1978. The person who came to control Schenley wrote his MBA thesis on how to make money by selling off companies piecemeal and that is exactly what he did to Schenley. In 1987 the parts of the company were sold to what became Diageo.

National Distillers was created during Prohibition from American Medicinal Spirits, which was formed from the old whiskey trust. They had a license to sell medicinal spirits and actually controlled the largest portion of those sales during that time. They owned brands like Old Crow, Old Taylor, Sunnybrook, Old Grand Dad, Mount Vernon Rye, and Old Overholt. They continued to expand after Repeal, opening many distilleries that had been closed during Prohibition but expanding with new distilleries for existing brands like Hill & Hill. During the 1970s their sales became stagnant and National began to close distilleries. By the mid- 1980s, the company was sold to American Chemical which owned Jim Beam.

Hiram Walker was a Canadian company. After Repeal, they entered the United States markets by building a huge distillery in Peoria, Illinois and started selling Ten High Bourbon. They had a few other brands, but their strength was still Canadian Club Canadian whisky. In the 1980s, Hiram Walker purchased the Maker’s Mark brand and distillery from the Samuels family but by the end of the century, this company too was sold off and the brands sold to other companies.

Seagram is another Canadian company. After Repeal they decided to enter the American markets by building a huge distillery in Louisville. During the war, they acquired Frankfort Distillery with its Four Roses brand and distilleries. They also acquired the Henry McKenna brand and distillery. By the 1950s they owned the two Four Roses distilleries in Louisville, Ky., the McKenna Distillery in Fairfield, Ky., the Atherton Distillery in Athertonville, Ky., the Four Roses Distillery in Lawrenceburg, Ky. and a Seagram Distillery in Lawrenceburg, Ind. Being a Canadian company, they focused their sales on blended whiskey such as 7 Crown and they turned Four Roses into a blended whiskey. Their flagship brand continued to be Crown Royal Canadian. They survived to the end of the 20th century, but then they too were sold off to Diageo who in turn sold the Four Roses brand and Distillery to Kirin of Japan.The Big Four were indeed huge companies after the war, but by the end of the 20th century, they all ceased to exist. Even so, the brands they built are still with us today. The decline of Bourbon sales in the 1960s,70s and 80s hurt them and they became only marginally profitable as a whole, but after these companies were split up and sold, they continued to be remembered through the brands they once controlled.

Photos Courtesy of Rosemary Miller

Kentucky DSP Numbers

DSP Numbers in Kentucky

 

Pre-Prohibition Distilleries

This list is made using the information from Mida’s Criteria Financial Index Directory of Wholesale Distillers, Importers and Wine Growers, 1909.

District 2

Daviess Couty Distilling Co. Distillery, DSP 2

J.W.M. Field, Inc. Distillery, DSP 3

Union County Distillery Co. Distillery, DSP 6

Eagle Distillery Co. Distillery, DSP 8

Green River Distilling Co. Distillery, DSP 9

Jno. Hanning Distilling Co. Distillery, DSP 11

M.P. Mattingly Distillery, DSP 13

Rock Spring Distilling Co. Distillery, DSP 18

Winstead Distilling Co. Distillery, DSP 19

Glenmore Distilling Co. Distillery, DSP 24

Old Tarrell Distillery, DSP 34

Henry Kraver Distillery, DSP 50

 

District 5

Ferdinand Westheimer & Sons Distillery, DSP 1

G. Mattingly Distillery, DSP 2

Buchanan – Anderson – Nelson County Distillers Distillery, DSP 4

Bonnie Bros. Distillery, DSP 6

Freidmann, Kellar & Co. \ Early Times Distillery, DSP 7

Jno. G. Roach Distillery, DSP 8

Bernheim Distilling Co. Distillery, DSP 9

Willow Springs Distillery, DSP 10

Sachs & Sons \ Old Saxon Distillery Co. Distillery, DSP 11

Crystal Springs Distilling Co. Distillery, DSP 12

Brown-Forman Co. Distillery, DSP 14

Vancleave & Hardesty Distillery, DSP 15

Stitzel Distilling Co. Distillery, DSP 17

E. Wathen & Co. Distillery, DSP 19

Pleasure Ridge Park Distilling Co. Distillery, DSP 29

Mellwood Distillery, DSP 34

F.M. Head / Parker, Orene & Co. Distillery, DSP 47

B.G. Redmon Distillery, DSP 50

Boone & Spaulding Distillery, DSP 60

Atherton Distillery, DSP 87

Buchanan –  Anderson – Nelson County Distillery, DSP 97

Glencoe Distilling Co. Distillery, DSP 106

Eminence Distillery, DSP 107

Kentucky Criterion Distillery, DSP 110

McKenna Distillery, DSP 111

T.W. Samuels Distillery, DSP 145

E.L Miles & Co. Distillery, DSP 146

Henry Sutherland Distillery, DSP 168

Dant Distillery Co. Distillery, DSP 169

Moore, Jesse Hut Co. Distillery, DSP 170

Smith & Smith Distillery, DSP 174

Mayfield Distillery, DSP 229

Clear Springs Distillery, DSP 230

Greenbrier Distillery, DSP 239

Taylor & Williams Distillery, DSP 240

W.B. Samuels & Co. Distillery, DSP 241

Wright & Taylor \ Old Charter Distillery, DSP 266

Mueller, Wathen & Kobert Distillery, DSP 270

Belle of Nelson Distilling Co. Distillery, DSP 271

Mattingly & Moore Distillery, DSP 272

Coon Hollow Distillery, DSP 294

Sunny Brook Distillery, DSP 297

Mueller, Wathen & Kobert Distillery DSP 299

H. Head Distilling Co. Distery, DSP 329

Old Kentucky Distillery, Inc. Distillery, DSP 354

Tom Moore Distillery, DSP 355

Cummins & Co. Distillery, DSP 357

Rugby Distillery Co. Distillers, DSP 360

B. Wathen & Co. Distillery, DSP 363

Max Selliger & Co. Distillery, DSP 364

Elk Run Distilling Co. Distillery, DSP 368

Boldrick-Callaghan Distillery, DSP 370

Nathan M. Uri & Co. \ International Distillery, DSP 371

G.R. Sharpe Distillery, DSP 372

Big Spring Distillery, DSP 379

Grabfelder & Co. \ Murphy, Barber & Co. Distillery, DSP 401

M.C. Beam & Co. Distillery, DSP 405

Ferncliff Distillery Co. Distillery, DSP 409

Ehrmann, Hillmar & Co. / F.G. Walker Co. Distillery. DSP 410

Max Selliger & Co. Distillery, DSP 412

White Mills Distillery, DSP 414

S.P. Lancaster Distillery, DSP 415

Old Grand Dad Distillery Co. Distillery, DSP 420

Thixton, Millett & Co. Distillery, DSP 422

Burks Spring Distillery, DSP 440

McClaskey & Son Distillery, DSP 442

Lynndale Distillery, DSP470

District 6

Latonia Distillery, DSP 2

Thorne Distilling Co. Distillery, DSP 3

Darling Distillery, DSP 4

Jett Bros. Distilling Co. Distillery, DSP 5

C.B Cook Distillery, DSP 6

Boone County Distilling Co. Distillery, DSP 8

Kellar Distillery, DSP 9

Wiglesworth Bros. Co. Distillery, DSP 10

New England Distillery, DSP 11

Old Tub Fowler Distilling Co., DSP 14

Hayes Valley Distilling Co. Distillery, DSP 16

Old Lewis Hunter Distillery, DSP 19

Myers & Co. Distillery, DSP 22

Old ’76 Distillery Co. Distillery, DSP 33

F.S. Ashbrook Distillery, DSP 35

Susquemac Distilling Co. Distillery, DSP 63

District 7

Stoll & Co. \ Old Tarr Distillery, DSP 1

Geo. T. Stagg Co. Distillery, DSP 2

E. Pogue Distillery Co. Distillery, DSP3

A. Gaines & Co. Distillery, DSP 4

James E. Pepper & Co. Distillery, DSP 5

Poyntz Bros. Distillery, DSP 6

J. Greenbaum Distillery, DSP 9

Peacock Distillery Co. Distillery, DSP 10

Old Judge Distillery, DSP 11

Old Elk Distillery, DSP 12

Chickencock Distillery, DSP 14

Old McBrayer Distillery / Associated Distillers of Kentucky Distillery, DSP 17

J.H. Rogers & Co., Limestone Distillery, DSP24

John T. Barbee & Co. Distillery, DSP 32

Frankfort Distillery Co. Distillery, DSP 33

Spring Hill Distillery, DSP 37

Old Clay Distillery \ James E. Pepper & Co. Distillery, DSP 46

W.J. Frazier Co. Distillery, DSP 50

Labrot & Graham Distillery, DSP 52

E.H. Taylr & Sons Distillery, DSP 53

Paris Distillery, DSP 77

Cedar Run Distillery, DSP 91

J.N. Blakemore Distillery, DSP 96

W.A. Gaines & Co. Distillery, DSP 106

Geo. T. Stagg Co. Distillery, DSP113

District 8

Burnam, Bennett & Co. \ Bernheim Distilling Co. Distillery, DSP 1

J.T.S. Brown & Sons Distillery, DSP 2

Curley Company, Inc. \ Blue Grass Distilling Co. Distillery, DSP 3

Curley Company, Inc. \ Boone Knoll Distillery, DSP 15

C.M. Dedman Distillery, DSP 16

John Dowling & Co. Distillery, DSP 41

Cedar Brook Distillery, DSP 44

Wiley Searcy Distillery, DSP 45

Old Jordan Distillery, DSP 63

Paxton Bros. & Co. Distillery, DSP 76

Yates –  Smith Co. \ Crab Orchard Distillery, DSP 81

Old Lexington Club Distilleries Co. Distillery, DSP 86

B. Ripy Distillery, DSP 112

Vanarsdale Distillery, DSP 118

Jno. E. Day Distillery, DSP 134

Dowling Bros. Distillery, DSP 148

Bond & Lillard Distillery, DSP 274

Ed Murphy & Co. Distillery, DSP 400

Hoffman Distilling Co. Distillery, DSP 406

Anderson County Distilling Co. Distillery, DSP 418

W.S. Hume Distillery, DSP541

Pilgrimage Distillery, DSP 554

 

Images Of The Past – Seagram Distillery, Louisville, Kentucky Postcard

After the repeal of Prohibition, Seagram built a distillery in Louisville. This distillery was on the southern boundary of the city on Seventh Street Road. The city limits ended not far from where they built this distillery at the time. Several other distilleries were built in the same area at about the same time, but outside of the city limits and the city taxes. These distilleries included Yellowstone Distillery, Four Roses Distillery, the distillery that is now Brown-Forman Distillery, Stitzel-Weller Distillery, Glencoe Distillery and Hill and Hill Distillery. When Louisville moved to annex the area where these distilleries are located, the distilleries supported the incorporation of Shively, Kentucky because the new city would have lower taxes.

The Seagram Distillery was built to be a huge distillery with lots of warehouse space. The office building was a very fancy Greek revival style building that became known locally as “the Seagram Palace”. It housed the administration for Seagram in Kentucky. The complex had modern laboratories for quality control and bottling lines. As Seagram grew, they purchased the Frankfort Distillery Company and added the Four Roses Distillery and warehouses just down the road from this location and the old Stitzel Distillery on Story Avenue, which Frankfort had bought from Stitzel when they built Stitzel-Weller. They also purchased several distilleries elsewhere in the State such as Henry McKenna Distillery and Athertonville Distillery. In the 1950s, Seagram had a huge presence in Kentucky. 

The late 1960s started the decline of Seagram in Kentucky. Sales of whiskey declined in the late 1960s and 70s. Seagram began to close distilleries as demand for their products slumped. They moved the production of Four Roses to their distillery in Lawrenceburg, Kentucky. They moved their bottling operation to Lawrenceburg, Indiana. In 1983, they closed their offices in Louisville and the buildings sat vacant for many years. Today, the office building is owned by a local charity organization and the warehouses are used by a document storage company.

This postcard shows the distillery as it looked in the 1950s. The art deco style warehouses and distillery were built of brick and concrete. The postcard shows a very lovely campus-style complex, well landscaped and clean. The complex still has much the same look today. The buildings were made to last and they have, showing little sign of decay. What the postcard does not show are the other businesses in the area. Today the neighborhood is dominated by strip clubs and a huge flea market. There is still distilling in the area. Brown-Forman still makes Bourbon a short distance away. Behind Seagram, the old Hill and Hill distillery is making industrial alcohol. The Yellowstone distillery is now owned and operated by Florida Distilleries and distills flavoring alcohol from citrus wine.

Photos courtesy of Rosemary Miller. Images from the archives of Michael Veach.

Bourbon Barons

In the 19th century, Scotland had a fairly large number of whiskey men who created brands and made fortunes. They were not nobility for the most part, but they soon became known as “Whisky Barons” for the wealth and influence they earned by selling brands such as Johnny Walker and Dewar’s Scotch Whisky. The term was adapted in America, and in Kentucky in particular, as “Bourbon Barons” to label the people who had earned their fortune in the Whiskey business. Traditionally, this term is used in reference to pre-Prohibition whiskey men. That is the period when there were indeed a lot of people making their fortune creating brands and selling whiskey. They did not have to own a distillery, but many of them did. 

Who were these pre-Prohibition Bourbon Barons? People like E. H. Taylor, Jr., George Garvin Brown, John Atherton, James E. Pepper, Paul Jones, Marion Taylor, W.L. Weller, I.W. Bernheim and many more. There were a lot of them. What they all had in common was that they began humbly and earned a fortune selling whiskey and used that money in various ways that created influence in the community. 

E.H. Taylor, Jr. was mayor of Frankfort and served in the Kentucky legislature. Brown was a huge contributor to the city of Louisville in the form of charities and the arts. Atherton supported public schools, Pepper supported the horse racing industry and owned several horses, but also supported other sporting events through sponsorship. Marion Taylor was a leader in the Louisville Chamber of Commerce, but also donated to charities in his home town in Mississippi. Weller was a founder of the Baptist Orphan’s Home in Louisville. Bernheim is most known for Bernheim Forest, but also donated to the city of Louisville and the State of Kentucky in the form of public statues to honor Kentuckians as well as charities such as giving the poor of Paducah free coal when the Ohio River flooded the city.

The Bourbon Barons made their fortunes selling whiskey, but they gave back to the community in many ways. I would argue that the term should not die with the beginning of Prohibition. There are many individuals and families post-Prohibition that made their fortunes in the industry. People like Julian Van Winkle, T.W. Samuels, the Shapira family and the Kulsveens. These people have not only created brands and made money, but they have given back to the community in many ways. I would consider them Bourbon Barons of the 20th century. 

As we move into the 21st century there are new distilleries and brands. People are making their fortunes in the industry and as they do so, they are giving back to the community. Often it is in small ways for many of the new businesses, but sometimes it is in much larger ways. The Brown family still contributes to the arts in Kentucky. The late Pearce Lyons and Alltech contribute to many projects around Lexington but is most famous of his support of the Kentucky Horse Park. Bourbon Barons are still being created today.

Bourbon Barons are people who should be of more interest to the fans of American whiskey. Consumers should learn more about them, the brands they created and how they spent some of that money. Therefore, I am going to start doing blogs on people who were, in my opinion, “Bourbon Barons”. My goal is to present at least five short biographies of these industry leaders done each year.

Images from the archives of Michael Veach

American Blended Whiskey: A Dying Category

American Blended Whiskey is a dying category with a rich heritage. Blended whiskey as a category had its start in the 19th century with the growing rectifying business in America. The invention of the column still in the 1840s made grain neutral spirits very inexpensive to produce. Many of these early blends were as much as 50% aged whiskeys. In the period after the American Civil War, people who did not have the money or the desire to build a distillery, but who wanted to enter the whiskey business, could purchase grain neutral spirits and barrels of aged whiskey and blend them with other ingredients such as fruit juice, caramel coloring and essential oils to create their own blended whiskey. It is true that many of these “blended whiskeys” sometimes did not even have aged whiskey in them, but many of the rectifiers truly wanted to make a good tasting product. John Atherton, a Kentucky distiller who sold many barrels to the rectifiers, defended the practice before Congress in the 1870s by stating that if you can add water to adjust the proof and flavor of a whiskey, why could you not do the same by adding neutral alcohol? It is a compelling argument.

Some people went to great lengths to make a quality blend. James Thompson, who sold his shares of Brown-Thompson to George Forman in order to start his own company, James Thompson & Bro., created a blend called “Old Thompson”. He would make his blend and then place the liquid back in the barrels for at least a year before selling it to consumers. He advertised it as “Wed in the Wood”. Many brands such as I W Harper, Old Forester and Four Roses were created by rectifiers and I know that I W Harper was a blended product as well as a Bourbon. Other brands may have had a blended version in their early history before becoming a straight whiskey.

The Bottled-in-Bond Act of 1897 and the Pure Food and Drug Act of 1906 created a consumer demand for straight whiskeys and blended whiskey began a slow decline in popularity. There were periods of resurgence of blends, such as right after Prohibition and during the Second World War, when aged straight whiskey was hard to come by and companies stretched their stocks by creating blends, but when straight whiskey became available, these blended products declined in sales as consumers bought straight Bourbon brands. There was also a time in the 1970s when consumers were looking for ‘light” products such as beer and whiskey, where blends made a bit of a comeback. Seagram Seven Crown became popular as consumers were mixing it with 7Up for a “7&7”. However, American Blended whiskey has been slowly declining since the 1980s. Today it is hard to find a blended whiskey in the liquor stores other than Seven Crown and Kessler’s.

Today a blend can have as much as 80% grain neutral spirits and flavoring components. The two brands mentioned above are 75% Grain Neutral Spirits (GNS) today. It would be interesting to see some others on the market, a revival some of the old art of blending with more aged spirits and less GNS. Age it in barrels for a time after the blending. Age the neutral spirits before blending. There are methods that can create a decent drink of whiskey with blended products. The Canadians and the Scots have been blending whiskey for years and they still have a market for their blended products, so why not work on creating a better American Blended Whiskey to compete for those consumers? It was done in the past and could be done again.

Photos Courtesy of Maggie Kimberl

Kentucky’s Great Distilleries: Four Roses – Masters of Yeast

After The American Civil War Paul Jones entered the whiskey business as a rectifier in Atlanta, Georgia. He did not own a distillery and purchased his whiskey from a local distillery – The Rose Distillery in Atlanta. Prohibition forced him to move his business out of Georgia in 1886.  He died before the beginning of the 20th century and the business passed on to his nephews who expand the company. They purchased the Frankfort Distillery and brands in 1902 giving the company its own distillery. Four Roses, then still the Frankfort Distillery, became one of the six companies to acquire licenses to sell “Medicinal Spirits” during Prohibition. They survived Prohibition only to be purchased by Seagram during WWII.

At the height of Seagram’s expansion into the Bourbon World they owned five distilleries in Kentucky – Atherton in Athertonville, Henry McKenna in Fairfield, Four Roses in Lawrenceburg, Seagram’s in Louisville and Four Roses also in Louisville. They made whiskey at each of these distilleries but most of the whiskey went into their blended whiskeys such as Seven Crown and Four Roses Blended, but they sold the Four Roses Bourbon in the overseas markets of Europe and Japan. At its height they were selling 800,000 cases of Four Roses overseas.

Each of these five distilleries had the same two mash bills but their own yeast. As the distilleries were closed down in the 1960s and 70s their yeast was sent to Lawrenceburg so the whiskey could still be made for the blends. In time all five yeasts ended up at Four Roses and they make whiskey using each of these strains today.

Four Roses Try Box By Maggie Kimberl

Seagram did try a brief period of Bourbon in 1976 when they wanted to compete with Maker’s Mark and Wild Turkey. They introduced Benchmark and Eagle Rare 101 however these brands ended up being sold before the century was over. Four Roses brand and distillery was their only investment in Kentucky in the 1990s. When the Bourbon Festival was created in Bardstown in 1991 and was seen as a success, the Master Distiller at Four Roses asked Seagram to allow the sale of Four Roses Yellow Label in Kentucky so the employees could drink their own Bourbon during the Festival. By 1996 Ova Haney had talked the parent company into introducing a single barrel version of the brand for duty free and select overseas markets. Ova retired and Jim Rutledge took over as Master Distiller and his enthusiasm and energy played a major role in making the distillery what it is today.

In 2002 Seagram sold the spirits portfolio and the distillery and brand ended up as part of the Japanese firm Kirin Brewery Company. Rutledge managed to make sure the distillery survived these difficult times, but more importantly he managed to get the new company to discontinue the Four Roses blended whiskey and expand the domestic sales of the Bourbon. First he introduced a domestic version of the single barrel that soon phased out the existing version and then a small batch version of Four Roses. Special releases of both single barrel and small batch Four Roses brands helped build the brand’s reputation as a premium product. This was important because of the reputation of the blended whiskey as a cheap, bottom shelf product made it hard to get consumers to try the Yellow Label brand. Today the brand and the distillery are thriving and like all other Kentucky distilleries, facing shortages of aged product. They are working hard to catch up to demand and the future looks bright.

The thing that really makes this distillery outstanding is the fact that they were owned by a Canadian blended whiskey firm for decades. The fact that Seagram wanted so many different whiskeys for their blends placed Four Roses in a unique position amongst Kentucky’s distilleries. They make 10 different whiskeys with two mash bills and five yeast strains. This makes the Yellow Label one of the most consistent flavor profiles in the industry. It is easier to reach a consistent flavor when there are more part to mix. The Yellow label is a marriage of all ten recipes. The Small batch is usually a marriage of four different recipes and of course the single barrel is only one recipe. This makes the barrel selection program really popular with consumers. A liquor store or a bar can purchase a barrel with a flavor profile that is not normally available as a national brand.

The recipes are broken down with two mash bills: E and B. The E mash bill is 75% corn, 20% rye and 5% malted barley and the B mash bill is 60% corn, 35 % rye and 5% malted barley. Because of the small amount of Malt used, they do use enzyme supplements to get a full conversion of starch to sugar in their mash. The yeast strains are as follows: V- delicate fruitiness, K – slightly spicy, O – rich fruitiness, Q – floral essence and F- herbal essence. They keep each of these recipes on site at the distillery and work hard to propagate and protect each one. All of these combinations make for some unique flavor profiles to start within the new make, but when you then add maturation into the process, the uniqueness is multiplied.

Four Roses Single Story Warehouse By Maggie Kimberl

To try to control these aging variables, Seagram built a complex of warehouses that was centrally located to each of the five original distilleries at Cox’s Creek. They then limited the variables by building single story warehouses with heavily insulated roofs. The temperature only varies by 7 degrees from the bottom to the top rack in the warehouses, not the forty or fifty degree shift that can happen in a multi-level warehouse at other distilleries, but still enough to give some variation in the barrels. The top two racks will have barrels that gain proof as they age, the bottom two will have barrels that lose proof as they age and the middle two stay within a few degrees of the original 120 entry proof.

Four Roses is unique in many ways but it is their five different yeast strains that most people remember about them. That and their great brand Ambassadors like Al Young. Four Roses is truly a great Kentucky Distillery.

Al Young By Maggie Kimberl

Photos Courtesy of Maggie Kimberl

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