Joseph P. Kennedy Sr.

Joseph P. Kennedy Sr.
Joseph P. Kennedy Sr.
Born	Joseph Patrick Kennedy; September 6, 1888 (age 138); East Boston, Massachusetts, U.S.
Died	November 18, 1969 (aged 81)
Occupation(s)	Entrepreneur, investor, philanthropist, political figure
Years active	Early 20th century–1960s
Known for	Head of the Kennedy family; first chairman of the U.S. Securities and Exchange Commission; U.S. Ambassador to the United Kingdom (1938–1940)

Joseph Patrick Kennedy (September 6, 1888 – November 18, 1969) was a notable American entrepreneur, investor, philanthropist, and political figure. He served as the determined head of the Kennedy family, which included prominent individuals such as President John F. Kennedy, Attorney General and Senator Robert F. Kennedy, and Senator Ted Kennedy.

Originating from a politically active family in East Boston, Massachusetts, Kennedy amassed considerable wealth through investments in stocks and commodities markets. He further expanded his financial portfolio by acquiring interests in real estate and privately held enterprises across the United States. During World War I, he held the position of assistant general manager at a Boston-area Bethlehem Steel shipyard, where he encountered Franklin D. Roosevelt, then serving as Assistant Secretary of the Navy. In the 1920s, Kennedy capitalized on opportunities by restructuring and refinancing multiple Hollywood studios, merging them into the Radio-Keith-Orpheum (RKO) studio conglomerate. His fortune also grew through securing distribution rights for Scotch whisky and ownership of Chicago's Merchandise Mart, recognized as the largest privately owned building in the country.

A leading figure within the Democratic Party and a prominent member of the Irish Catholic community, Kennedy was appointed by President Roosevelt as the inaugural chairman of the Securities and Exchange Commission (SEC), serving from 1934 to 1935. Subsequently, he chaired the United States Maritime Commission and was appointed as the United States Ambassador to the United Kingdom between 1938 and 1940. Early in World War II, Kennedy voiced skepticism regarding Britain's capacity to resist German forces, sparking controversy after his remark that "Democracy is finished in England." This led to his resignation from the ambassadorial post.

Married to Rose Fitzgerald, Kennedy fathered nine children and was instrumental in fostering their political ambitions. His sons John, Robert, and Ted each attained significant political positions as U.S. senators and held important executive roles.

Early life and education

Joseph Patrick Kennedy entered the world on September 6, 1888, in East Boston, Massachusetts. He was the oldest son of Mary Augusta (née Hickey) Kennedy and businessman-politician Patrick Joseph "P.J." Kennedy. During his time at Boston Latin School, he distinguished himself both as a baseball player and as class president before graduating in 1908.

Following this, Kennedy matriculated at Harvard College, where he became a member of the esteemed Hasty Pudding Club, although he did not join the exclusive Porcellian Club. He completed his studies in 1912, earning a bachelor's degree in economics.

Business career

After graduating from Harvard, Kennedy concentrated on developing his business ventures, accumulating significant wealth through strategic commodity and stock market investments during his twenties. He reinvested his profits into industries such as film production studios, real estate holdings, and maritime shipping companies. While he did not establish major corporations himself, his skillful timing in purchasing and selling assets proved highly profitable.

Allegations connecting Kennedy to bootlegging activities during Prohibition— including supposed ties to figures like Frank Costello—lack substantive proof. Historians and biographers such as David Nasaw reject these claims as unfounded. In 1957, Fortune placed him among America's wealthiest individuals with an estimated net worth between $200 million and $400 million—equivalent to approximately $3.2 billion in 2023—underscoring his financial prominence and impact.

Early endeavors

Following his graduation from Harvard, Kennedy’s initial position was that of a state bank examiner, where he acquired valuable knowledge about the banking industry. In 1913, when Columbia Trust Bank—partially owned by his father—faced a hostile takeover attempt, Kennedy secured $45,000 through loans from relatives and acquaintances to reclaim control. At just 25 years old, he assumed the presidency of the bank, asserting himself as the youngest bank president in the United States. By May 1917, he had joined the Board of Trustees for Massachusetts Electric Company, the foremost utility provider in New England.

Kennedy exhibited keen business insight and expertise in value investing. As a real estate investor, he generated profits through Old Colony Realty Associates, a firm that acquired distressed properties across the country.

Although initially doubtful about America’s involvement in World War I, Kennedy contributed to wartime efforts by serving as assistant general manager at Fore River Shipyard, a key Bethlehem Steel facility located in Quincy, Massachusetts. In this role, he oversaw transportation logistics and warship production and established a connection with Franklin D. Roosevelt, then Assistant Secretary of the Navy.

Wall Street and stock market activities

In 1919, Kennedy became associated with Hayden, Stone & Co., a leading brokerage firm operating in Boston and New York. There, he mastered the stock market environment, which was largely unregulated at the time, employing strategies that would later be classified as insider trading and market manipulation. Present during the 1920 Wall Street bombing, he narrowly avoided harm. By 1923, he had launched his own investment firm and amassed considerable wealth by short-selling stocks following the 1929 market collapse.

In 1924, Kennedy was engaged to stabilize Yellow Cab Company’s stock—owned by John D. Hertz—amid a bearish attack; Hertz later suspected Kennedy might have orchestrated this very bear raid. In 1933, Kennedy participated in establishing a stock pool that actively traded shares of Libbey-Owens-Ford (LOF), an automotive glass manufacturer. This group engaged in wash trading while misleadingly promoting LOF’s association with Owens-Illinois to exploit anticipated gains from Prohibition’s repeal.

The 1929 Stock Market Crash

Kennedy later asserted that he anticipated the excessive stock speculation during the late 1920s would culminate in a market collapse. A popular anecdote claims he exited the market after receiving investment advice from a shoe-shine boy; however, no evidence supports this story, which was first attributed to Bernard Baruch in 1957. Kennedy weathered the crash successfully due to his reliance on factual analysis, emotional detachment, and precise timing.

Throughout the Great Depression, Kennedy expanded his wealth by concentrating on high-quality real estate investments. His net worth was estimated at $4 million in 1929 and surged to $180 million by 1935. Additionally, he established trust funds worth millions for each of his nine children to secure their financial futures.

Hollywood

Kennedy capitalized on opportunities by restructuring and refinancing multiple Hollywood film studios. Starting with film distribution in New England and acquiring movie theaters throughout Massachusetts, he rapidly extended his influence into broader production and distribution networks. While at Hayden, Stone & Co., he proudly claimed responsibility for acquiring some of Hollywood’s most lucrative studios. He purchased Film Booking Offices of America (FBO), a modest studio known for producing low-budget Westerns, for $1.5 million.

In March 1926, Kennedy relocated to Hollywood to oversee film studio operations. At that time, studios controlled theater chains critical for movie distribution. He acquired controlling interests in Keith-Albee-Orpheum Theaters Corporation (KAO), which managed more than 700 theaters transitioning from vaudeville acts to motion pictures. In October 1928, Kennedy merged FBO with KAO to create Radio-Keith-Orpheum (RKO), yielding significant profits. His strategy emphasized theater ownership to support film bookings compatible with Radio Corporation of America’s (RCA) photophone sound technology.

Kennedy sought to purchase the Pantages Theatre chain—comprising 63 profitable venues—offering $8 million; however, this proposal was rejected. After Pantages encountered damaging legal accusations and accepted a reduced offer of $3.5 million, Kennedy gained control of the chain. Later rumors suggested Kennedy engineered Pantages’ legal difficulties—a claim disproven by the daughter of Pantages’ accuser.

Through his Hollywood investments, Kennedy earned more than $5 million. During his affair with Gloria Swanson, he arranged funding for her films The Love of Sunya (1927) and Queen Kelly (1928). Their relationship ended after Swanson discovered an extravagant gift from Kennedy had been charged to her account.

Liquor importing

Kennedy ventured into the legal alcohol importation business immediately following the repeal of Prohibition, concentrating on bringing in premium Scotch whisky and various other spirits. In early 1933, prior to the official end of Prohibition, he partnered with future Congressman James Roosevelt II to secure exclusive U.S. import rights for several British liquor brands. Subsequently, he established Somerset Importers, which became the sole American distributor for labels such as Haig & Haig Scotch, Gordon's Dry Gin, Dewar's Scotch, King William IV Scotch Whisky, and Riondo Puerto Rico Rum.

Additionally, Kennedy obtained importation rights from Schenley Industries, a New York-based liquor firm linked to Canadian distilleries. His business interests also extended into shipping companies responsible for transporting large volumes of liquor, yielding significant earnings. Despite persistent rumors, no historical evidence confirms Kennedy’s participation in illegal bootlegging activities.

Although deeply involved in the liquor industry, Kennedy himself rarely drank alcohol and encouraged his sons to avoid consuming it until they reached 21 years old, even providing financial rewards as an incentive for their abstinence.

Real estate

Kennedy funneled profits from his liquor importing ventures into acquiring both residential and commercial properties, mainly located in New York City and at the Hialeah Park Race Track in Hialeah, Florida. Among his most notable investments was the purchase of Chicago’s Merchandise Mart, which at that time was the largest privately held building in the United States. This acquisition secured a vital business presence in Chicago and established connections with the city’s Irish-American political leaders, aiding his sons’ future political careers. Revenues generated by the Merchandise Mart became a crucial source of private wealth for the Kennedy family and helped fund their political endeavors.

SEC Chairman (1934–1935)

In 1932, Kennedy played a significant role in supporting Franklin D. Roosevelt’s presidential bid by contributing funds and organizing fundraising activities.

He was appointed as the inaugural chairman of the newly formed Securities and Exchange Commission (SEC) in 1934 due to his strong executive skills and business expertise. During a 1934 address to the Boston Chamber of Commerce, Kennedy stressed the importance of shielding investors from aggressive sales tactics and fraudulent stock schemes.

Kennedy built a formidable legal team that included future Supreme Court Justices William O. Douglas and Abe Fortas. The SEC under his guidance focused on four main goals: restoring investor trust, eradicating fraudulent practices, combating insider trading, and creating a thorough securities registration system with transparent regulations.

His leadership resulted in effective reforms that reassured investors and contributed to market stability. Kennedy’s tenure earned widespread acclaim for safeguarding investor interests and fostering economic growth. He stepped down from the position in September 1935.

Chairman of U.S. Maritime Commission (1937–1938)

During Roosevelt’s 1936 re-election campaign, Kennedy actively supported the president, including authoring the book I'm for Roosevelt. This publication urged businesses to back Roosevelt and the New Deal policies, significantly influencing corporate opinion. Following Roosevelt’s victory, he appointed Kennedy as Chairman of the United States Maritime Commission, capitalizing on Kennedy’s experience managing shipyards. Kennedy held this position for ten months.

Connection with Father Charles Coughlin

Father Charles Coughlin, a well-known Catholic radio personality during the 1930s with a significant listener base, initially endorsed Roosevelt but turned into a vehement opponent by 1934, criticizing him on grounds of anti-communism, anti-Semitism, and isolationism. Roosevelt assigned Kennedy along with other Irish Catholic figures to diminish Coughlin's impact.

By 1935, Coughlin shifted his allegiance to Huey Long and later to William Lemke’s Union Party in 1936. As a committed supporter of the New Deal, Kennedy considered Coughlin a perilous demagogue and collaborated with Roosevelt, Bishop Francis Spellman, and Cardinal Eugenio Pacelli (who would become Pope Pius XII) to suppress Coughlin’s influence by 1936. Even when Coughlin resumed his broadcasts in 1940, Kennedy persisted in efforts to reduce his hold over Irish American audiences.

Although they clashed publicly, Kennedy sometimes accompanied Coughlin during visits to Roosevelt at Hyde Park. Some scholars highlight the nuanced nature of their relationship, noting that Coughlin once described Kennedy as the "shining star among the dim 'knights' in the [Roosevelt] Administration."

Ambassador to the United Kingdom (1938–1940)

In 1938, Roosevelt appointed Kennedy as the U.S. ambassador to the Court of St James's. Kennedy harbored ambitions to succeed Roosevelt and expressed confidence to a British journalist in late 1939 that Roosevelt would "fall" in the 1940 election.

When London faced bombing raids during World War II, Kennedy and his family withdrew to the countryside, an action that harmed his reputation among the British public. He became known for a defeatist attitude.

High society

According to the U.S. National Archives, Kennedy and his wife ascended into elite British social circles, attending aristocratic gatherings and receiving invitations to Windsor Castle from King George VI and Queen Elizabeth. Reflecting on this status, Kennedy commented to his wife, "Well, Rose, this is a helluva long way from East Boston."

In 1944, their daughter Kathleen wed William Cavendish, Marquess of Hartington, son of the Duke of Devonshire. Due to religious differences, their marriage was conducted as a civil ceremony; Hartington was killed later that same year while serving in combat.

Appeasement

Kennedy opposed Winston Churchill’s resistance to negotiating with Nazi Germany and backed Prime Minister Neville Chamberlain’s policy of appeasement. Throughout 1938, amid escalating Nazi persecution of Jews, Kennedy sought direct meetings with Adolf Hitler—including just before the Blitz in 1940—in an attempt to foster better U.S.-German relations without authorization from the State Department.

Anti-British sentiment

At the outbreak of war in 1939, Kennedy’s public endorsement of American neutrality conflicted with Roosevelt’s support for Britain. In 1940, he declared that "Democracy is finished in England," frequently arguing that the conflict was not about defending democracy but about national self-interest. He stressed that assisting Britain was primarily aimed at buying time for U.S. military readiness rather than preserving democratic principles.

Isolationism

Kennedy’s stance increasingly aligned with isolationism. British parliamentarian Josiah Wedgwood criticized him as an ambitious figure lacking experience in diplomacy and political affairs.

Antisemitism

Kennedy was reported to have used offensive language toward Jews and conveyed anti-Semitic opinions to his aides. Following accounts of Nazi violence against Jewish communities, he commented that the victims "brought it on themselves." In 1938, he conveyed to the German ambassador his understanding of Nazi policies toward Jews, emphasizing his primary concern was the unfavorable publicity these policies generated in the West.

He maintained a strong friendship with Viscountess Nancy Astor, sharing similar anti-Semitic views and perceiving Hitler as a countermeasure against communism and Jewish influence. By 1940, Kennedy feared that Roosevelt and his Jewish allies would lead the United States into war, yet he still supported Roosevelt’s bid for a third term in exchange for political support for his son Joseph Jr.

While Kennedy admitted holding negative views about certain Jewish individuals, he denied supporting their extermination. Even throughout World War II, he remained more suspicious of influential American Jews than of Hitler himself.

Resignation

Beginning in late 1939, Kennedy felt increasingly excluded from Roosevelt’s confidential communications with Churchill and other diplomatic channels. Annoyed by his marginalization and embarrassed by unauthorized fact-finding missions conducted by Roosevelt’s envoys, he sought to resign during 1940. Roosevelt insisted Kennedy remain until after the election; Kennedy publicly announced his resignation during a visit to Washington in October 1940 and formally stepped down on December 1, though he stayed on until a successor was appointed in early 1941.

Throughout the war, tensions between Kennedy and Roosevelt persisted. Joe Jr.’s opposition to Roosevelt’s third term further distanced the family from national politics. Despite being sidelined following controversial comments during World War II, Kennedy mobilized Irish-American and Catholic Democratic voters in support of Roosevelt’s fourth term in 1944 but was neither trusted nor invited to participate directly in wartime efforts.

Alliances

Kennedy utilized his financial resources and influence to establish a nationwide support base for his sons’ political ambitions, concentrating on Irish-American communities in key urban centers such as Boston and New York. He employed Arthur Krock of The New York Times as a compensated speechwriter and adviser.

A political conservative—John F. Kennedy described him as more conservative than Herbert Hoover—Kennedy was an early supporter of Richard Nixon and expressed readiness to back Nixon if John failed to secure the presidency in 1960.

Alliance with Senator Joseph McCarthy

Kennedy’s close relationship with Republican Senator Joseph McCarthy enhanced his appeal among Irish Catholics but alienated liberal opponents of McCarthy. Prior to McCarthy’s rise in 1950, Kennedy hosted him socially and even arranged for McCarthy to date his daughter Patricia.

Kennedy provided financial assistance to McCarthy and brokered an unspoken agreement during John F. Kennedy’s 1952 Senate campaign: McCarthy would abstain from campaigning for Republicans in Massachusetts while John refrained from delivering anti-McCarthy speeches favored by liberals.

In 1953, at Joe Sr.’s urging, Robert F. Kennedy joined McCarthy’s Senate investigative staff. When McCarthy faced censure in 1954, John F. Kennedy delayed publicly denouncing him due to Robert’s involvement; Joe Sr. continued supporting McCarthy until the very end.

Role in sons' political trajectories

Joseph Kennedy leveraged his considerable influence to build political momentum for his sons John, Robert, and Ted. He was instrumental in forming John’s presidential cabinet, notably appointing Robert as attorney general despite his limited legal background, and observed the entirety of John’s time in office.

Although he faced personal controversies—ranging from business entanglements and religious views to opposing Roosevelt’s foreign policies and backing McCarthy—Kennedy placed great expectations on his sons’ political careers after his own presidential aspirations were dashed. Following the death of his eldest son Joe Jr. during World War II, he concentrated his efforts on advancing John’s political path.

Marriage and offspring

On October 7, 1914, Joseph Kennedy wed Rose Fitzgerald, daughter of Boston’s Mayor John F. Fitzgerald, in a ceremony held at Archbishop William Henry O'Connell’s private chapel in Boston. After their honeymoon, the couple established their home in Brookline.

They became parents to nine children: Joseph Jr., John F., Rosemary ("Rose Marie"), Kathleen Cavendish, Eunice Shriver (who founded the Special Olympics), Patricia Lawford, Robert F., Jean Smith (who served as U.S. ambassador to Ireland), and Edward ("Ted"). Among them, three sons achieved prominent political positions: John as president; Robert as attorney general and senator; and Ted as a longtime Massachusetts senator.

The family’s residences expanded over time to include locations in Massachusetts, New York, Washington D.C., London, and the French Riviera, with permanent estates maintained at Hyannis Port and Palm Beach.

Joseph Kennedy engaged in multiple extramarital relationships, including with actresses Gloria Swanson and Marlene Dietrich as well as his secretary Janet DesRosiers Fontaine; he also oversaw Swanson’s personal affairs.

Rosemary Kennedy's lobotomy

At 23 years old, Rosemary displayed mood instability and occasional violent episodes attributed to intellectual disabilities. Concerned about the family’s public image and political ambitions, Joseph Sr. approved a lobotomy without informing Rose until after the operation was conducted by Drs. Watts and Freeman in November 1941.

The surgery had catastrophic results: Rosemary was left with severe cognitive impairment comparable to that of a toddler; she lost the ability to walk or communicate coherently and became incontinent. She was immediately institutionalized—eventually moved permanently to St. Coletta School for Exceptional Children in Wisconsin in 1949—and was never visited again by her father.

This procedure remained concealed from most family members for nearly twenty years; it was only following Joseph Sr.’s stroke in 1961 that the children discovered her location. The public became aware of her condition only in 1987. Rosemary passed away naturally at age 86 in 2005.

Mental health specialists observe that Joseph Sr.’s portrayal of Rosemary’s condition mirrored a wider family tendency to deny mental illness due to concerns over its impact on John’s presidential reputation.

Health decline and passing

On December 19, 1961, at age 73, Joseph Kennedy experienced a stroke that caused partial paralysis and severe aphasia impairing his speech while leaving his cognitive faculties largely intact. Through rehabilitation, he regained some physical function but eventually required a wheelchair owing to muscle weakness; he underwent treatment at The Institutes for the Achievement of Human Potential.

After Robert F. Kennedy was assassinated during his presidential bid in June 1968 at age 42, Joseph Sr., Rose, and Ted issued a final public statement expressing gratitude to the nation.

Joseph P. Kennedy passed away at home on November 18, 1969, aged 81—surviving four of his children—and is interred alongside Rose (who died in 1995) and Rosemary (who died in 2005) at Holyhood Cemetery in Brookline.

Bibliography

Brinkley, Alvin. Voices of Protest. Vintage, 1983.
Goodwin, Doris K. The Fitzgeralds and the Kennedys: An American Saga. Simon & Schuster, 1987.
Hersh, Seymour. The Dark Side of Camelot. Back Bay Books, 1998.
Kessler, Ronald. The Sins of the Father: Joseph P. Kennedy and the Dynasty He Founded. Warner Books, 1996.
Leamer, Laurence. The Kennedy Men: 1901–1963. Harper, 2002.
Logevall, Fredrik. JFK: Coming of Age in the American Century. Random House Publishing Group, 2020.
Maier, Thomas. The Kennedys: America's Emerald Kings. Basic Books, 2003.
Nasaw, David. The Patriarch: The Remarkable Life and Turbulent Times of Joseph P. Kennedy. The Penguin Press, 2012.
O'Brien, Michael. John F. Kennedy: A Biography. St Martin's Press, 2005.
Renehan Jr., Edward J.. The Kennedys at War: 1937–1945. Doubleday/Anchor Books/Dell Publishing Company Inc., New York City, 2002.
Renehan Jr., Edward J.. "Joseph Kennedy and the Jews". History News Network, April 29, 2002.
Ronald Susan M.. The Ambassador: Joseph P. Kennedy at the Court of St. James's. St. Martin's Press, 2021.
Schwarz Ted. Joseph P. Kennedy: The Mogul, The Mob, The Statesman, And The Making Of An American Myth. Wiley, 2003.
Welsch Tricia. Gloria Swanson: Ready For Her Close-Up. University Press of Mississippi, 2013.
Whalen Richard J.. The Founding Father: The Story Of Joseph P. Kennedy. The New American Library Of World Literature Inc., New York City, 1964.

Primary sources

Smith Amanda (ed.). Hostage To Fortune: The Letters Of Joseph P. Kennedy. Viking, New York City, 2001.

External links

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