J. W. Kelly
James Watt Kelly | |
|---|---|
| Born | 1844-02-26 Waterford, Ireland |
| Died | 1907-03-10 Chattanooga, Tennessee, U.S. |
| Occupation | Entrepreneur |
| Known for | Founder of J. W. Kelly & Co., Chattanooga's first distillery after the Civil War |
James Watt Kelly was an Irish-American entrepreneur who established J. W. Kelly & Co, recognized as Chattanooga’s inaugural distillery after the Civil War. His commercial interests grew to encompass tobacco products, cigars, cigarettes, the importation of both domestic and foreign spirits, as well as significant real estate investments spanning several states.
Early life
Born on February 26, 1844, in Waterford, Ireland, James Watt Kelly relocated with his family to Dublin at the age of eight. There, he received formal business training specializing in the wholesale wine industry.
His father, Henry William Kelly, worked as an auctioneer with offices situated in both Dublin and Waterford. His mother was Margaret Watt. Kelly had two sisters: Mary Agnes Kelly Scott and Eliza Jane Kelly Smith. Among his notable relatives were Lord Roberts, a first cousin; James Watt, who served as Queen Victoria’s proctor for Ireland in 1850; and Dr. John Watt, a British Army surgeon involved in the Crimean Campaign who passed away at Kelly’s residence in Chattanooga in 1890.
In February 1863, shortly after reaching nineteen years old, Kelly emigrated to New York City. Within a year, he relocated to Nashville, Tennessee, where he gained employment with R.H. Singleton in the book and stationery trade and contributed to compiling Nashville’s inaugural city directory.
At that time, Nashville was under Union control following the 1864 Battle of Nashville. The local economy experienced rapid expansion driven by employment opportunities in depots, warehouses, and hospitals. Leveraging his commercial acumen, Kelly began producing and selling his own whiskey through rectification.
On September 3, 1870, Kelly married Elizabeth Jane Short in Waterford. Mrs. Kelly became a distinguished member of Chattanooga’s social circles, known for organizing social gatherings and serving on boards affiliated with churches and charitable organizations.
Business career
In September 1866, while passing through Chattanooga en route to New York to collect a debt, Kelly remained in the city after failing to recover the owed sum. He leased retail space from Daniel Kaylor and launched J. W. Kelly & Co. He proceeded to establish Deep Spring Distillery, which commenced full operations by 1870. Kelly secured distribution agreements for various tobacco, cigar, and liquor lines while also initiating production of his own whiskey.
Initially, J. W. Kelly & Co consisted of two principal partnerships. The first partnership was with John G. Webb under the name Kelly & Webb shortly after opening their storefront. Their business focused on importing and wholesaling foreign fruits, French confectioneries, nuts, spices, jellies, and cigars sourced from Cuba, Germany, and domestic producers. Their initial location was at 63-65 Ninth Street before relocating to 253 Market Street. After a minor fire incident in 1867 and acquiring restaurant premises beneath the Read House Hotel in 1872, Webb divested his interest by 1874; Kelly followed suit later that same year.
Following the dissolution of the Webb partnership, Kelly broadened his import portfolio to include wines, liquors, ales, champagne, and cigars featuring brands such as Hennessy, Guinness, Claret varieties, and Californian wines.
The second major partnership commenced toward the end of 1876 with George W. Davenport. Together they diversified into real estate by purchasing saloons and bars which they leased out along with retail spaces utilized for club meetings including those of the Irish-American League—an organization where Kelly served as a founding board member. Their premises at 13-15 West Ninth Street offered rentable space on both upper and lower floors.
Kelly and Davenport secured exclusive distribution rights for numerous spirits, wines, and tobacco brands within their market area while developing a prosperous business encompassing whiskey production, tobacco sales, and real estate holdings until Davenport retired in 1890 to pursue a dry goods wholesale enterprise.
After Davenport’s departure from the partnership, Kelly continued importing California wines alongside Jefferson Cigars and popular beers such as Budweiser, Schlitz, and Pabst Blue Ribbon. He acted as the sole local agent for cigarette brands including Nancy Bell and The Wedding Blossom Cigar. His proprietary whiskey labels achieved market success—offering approximately twelve varieties including Deep Spring (his flagship), Cedar Bluff Rye Whiskey, Golden Age Rye, O.P.S. Belmont Rye, Old Milford Bourbon, Old AA Lincoln County Whiskey, Tennessee Corn Whiskey blends, Mountain City Corn Shuck Whiskey, Old Tennessee Sugar Corn Whiskey, Pine Split Gin, Silver Spring Corn Malt Whisky, Red Banks Handmade Sour Mash Whiskey, and Melrose Rye.
Kelly further expanded his portfolio of real estate assets to encompass saloons, grocery outlets, and other commercial properties. A notable holding was ownership of the barroom, billiards parlor, cigar shop, and restaurant located within the Read House Hotel since its opening in 1872.
In 1900 Carl White joined J. W. Kelly & Co as vice president; around this period the company formally adopted its current name. White ascended to president circa 1906 while Kelly retained his role as chief executive officer until his passing in 1907.
Death
Throughout his lifetime, Kelly struggled with health issues that led him to seek recuperation in places such as Hot Springs, Arkansas. In early 1906, his illness became severe, and it is believed that Carl White stepped in as president of J. W. Kelly & Co. By April, Kelly's condition had improved significantly, and he was reported to be out of danger. Nevertheless, his health deteriorated again by mid-August, with symptoms continuing into the autumn months. By the end of February 1907, he was confined to his home due to his poor health.
On March 10, 1907, after hosting family members at his Chattanooga home located at 506 Vine Street, Kelly took an afternoon nap and was discovered unresponsive around 2:30 p.m. Dr. Berlin attributed his death to a cerebral blood clot; the burial records list “Embolism” as the cause. Kelly did not have children, leaving his wife as the sole inheritor of his estate.
Elizabeth J. Kelly passed away later that same year on November 7, 1907, following a lengthy illness diagnosed as “emphysema.” The couple was laid to rest together in Forest Hills Cemetery, Section K, Lot 74. Her testament named numerous beneficiaries—including charitable organizations—and appointed her niece Louise Evelyn Maud Longmire as executrix.
After Elizabeth’s passing, thirteen relatives from countries including Canada, England, Ireland, New Zealand, and India asserted claims on the estate, which held real estate assets valued near $100,000 at the time (equivalent to approximately $2.97 million in 2022). An updated will from May 1907 identified thirty-one beneficiaries with total bequests amounting to nearly $362,000 (around $10.7 million in 2022). All disputes regarding the estate were settled by late 1908.
J. W. Kelly & Co.
Following the demise of both Mr. and Mrs. Kelly, Carl White appointed a new leadership team at J. W. Kelly & Co., which included J.S. Cannon as Vice President, P.L. Mitchell serving as General Manager, Cecil C. DeBardelaben overseeing Sales, and Thomas P. Hagan fulfilling the roles of Secretary and Treasurer. Their business approach emphasized promoting alcoholic beverages produced at Deep Spring Distillery along with importing spirits from various parts of the United States and Europe, despite resistance from temperance advocates.
Starting in 1877, Tennessee implemented stringent regulations on alcohol that progressively expanded to restrict sales near rural schools and towns; by 1907 these laws significantly curtailed liquor commerce statewide. Chattanooga remained one of the few major cities exempted from these prohibitions.
The Holladay Bill passed in Tennessee in 1909 prohibited liquor sales within a four-mile radius of any school and banned the manufacture of intoxicating drinks. In response, J. W. Kelly & Co. shuttered Deep Spring Distillery in July but reopened it briefly to complete out-of-state mail orders. The company legally contested these statutes by citing exemptions for wholesale transactions and interstate commerce; although initial rulings dismissed their claims, a 1910 decision by the state supreme court permitted interstate shipments but forbade wholesale sales intended for consumption within Tennessee.
In February 1911, Carl White acquired a fifty percent stake in the Kentucky Peerless Distilling Plant for $40,000. He expanded its production capacity twofold and integrated it into J. W. Kelly & Co.'s operational and promotional activities.
After Tennessee enacted the "Bone Dry Bill" in 1917—which outlawed possession and transportation of alcoholic beverages—J. W. Kelly & Co. moved its production facilities to Henderson, Kentucky; reduced its Chattanooga office; and established corporate branches in Lexington, Chicago, and New York City. The company pivoted to marketing non-alcoholic drinks within Tennessee while continuing distribution agreements with brands such as Budweiser.
Operations ceased entirely following ratification of the Eighteenth Amendment in 1919.
At Carl White’s request, Deep Spring Distillery was demolished in 1927; he subsequently initiated legal action against the contractor over alleged misappropriation of proceeds from salvaged materials.
Kelly Cigar Company
J. W. Kelly initiated his venture into selling cigars, cigarettes, and tobacco at his inaugural Chattanooga location in 1866, branching out from his earlier involvement in whiskey and real estate. In 1909, foreseeing potential difficulties in alcohol manufacturing, the business launched the Kelly Cigar Company, featuring its primary Kelly Cigar Store at 833 Market Street, which subsequently moved to 1144 Market Street in 1927.
The Kelly Cigar Company offered a variety of cigar and tobacco brands along with unique items such as imported ink pens, and it also functioned as the downtown ticket outlet for Chattanooga's Lyric Theater. Between 1914 and 1919, the company underwent multiple ownership transitions until it was acquired by the Couch Brothers and Webb, who briefly renamed it Kelly Cigar and Tobacco Company.
Kelly Cigar operated up until 1956 when it was acquired by the Witt Group, then recognized as the largest tobacco distributor in the Southern United States and headquartered in Tampa, Florida. In 1962, it became part of the Hav-A-Tampa Group—a coalition of fifty tobacco distributors. The company ceased operations in 1963. Hav-A-Tampa was eventually absorbed by Imperial Tobacco, which shuttered its Ybor facility in 2009; production of their cigars has since shifted to Puerto Rico.
Relaunching J. W. Kelly
In 2017, Keeper's Quest revived the J. W. Kelly & Co brand, bringing back Kelly’s original whiskey formula and reintroducing historic labels including Old Milford, Melrose Rye, and Golden Age. This effort aims to honor both the tradition of Kelly’s whiskey craftsmanship and his entrepreneurial spirit.