

The moonlight falls the softest |
The bluegrass waves the bluest |
"In Kentucky" is perhaps the best known and most printed poem about Kentucky. It was written by Judge James Hillary Mulligan for a banquet for the members of the Kentucky legislature held 11 February 1902 at the Phoenix Hotel in Lexington. It was very well received and reprinted by three Lexington newspapers. The Lexington Leader ran the poem on its front page the next day and described the Judge's reading of his poem this way:
...At the close of an unusually brilliant and witty toast he drew from his pocket, as if drawing a deadly weapon, a dangerous-looking type-written manuscript, and, peering over his glasses with a smile of satisfaction that amounted almost to a leer, read a poem which he said he wrote himself and was willing to take responsibility of its authorship. Without excuse or apology, and with very little warning, he read the following, which was constantly interrupted by applause that burst into a grand napkin salute at its close...
The other papers agreed. The Lexington Democrat said "The judge was at his best and that means a great deal. At his worst, he is great, so the reader can imagine the feast of wit that was given to the visitors." The Morning Herald said of the banquet that "The service was so bad that much of the pleasure of the evening was spoiled and it would have been a failure had it not been for the speeches" and that Judge Mulligan "for a quarter of an hour kept the house in a continual uproar, closing with the following original poem..."
Copies were widely distributed and it was set to music, imitated ("In Virginia," for example), and parodied. John Wilson Townsend, in his 1913 Kentucky in American Letters, 1784-1912, wrote that
...it has been declaimed in the halls of Congress and gotten into the Congressional Record. It has been parodied a thousand times, reproduced in almost every newspaper in English, illustrated, and at least one Kentuckian has heard it chanted by an Englishman in the shadow of the Pyramids in Egypt! More than a million souvenir postal cards have been sold with the verses printed upon them; and had the author had In Kentucky copyrighted, he would have reaped a harvest of golden coins.
This poem and it's information is from the University of Kentucky in Lexington KY