His second marriage was on February 3, 1923 to Caroline (née Morton) Potter (1882–1952), a daughter of Paul Morton, the former vice president of the Santa Fe Railroad who served as Secretary of the Navy under President Theodore Roosevelt. Caroline, the former wife of William C. Potter (president of the Guaranty Trust Co. who had done business with Guggenheim in 1920), was also the niece of Joy Morton, founder of Morton Salt, and a granddaughter of Julius Sterling Morton, who had served as Secretary of Agriculture under President Grover Cleveland. Before their divorce in 1923, they were the parents of one daughter: