Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1873-08-04
The Donahoe Case.

The Donahoe Case.
We mentioned in Saturdays Daily, the ar
rest in Lynn, Mass, of Mr.. j. r. Donahoe,
on requisitfon from the Governor, charged
with cheating by false pretences." Mr..
Donahoe has been proprietor of the Augusta
Shoe Factory, receiving the building from its
owner, Hon. G. G. Stacy, about year since
on free lease for one year; after that he was
to pay a certain per cent. for the use of the
same. Donahoe furnished the machinery and
stock, hired the help, and in short was to
carry on the entire business. The business
opened under most favorable auspices. 1t is
alleged that Donahoe stated that he had CAPT
tai enough to carry on the business success
fully that he owned a store. house and other
property in Lynn, which he intended to dis
pose of and concentrate bis entire capital here
But soon there came the evidences of decay;
rumors were rife of his being cheated by
those in which he had placed child like conf.
dence in Lynn, and then other rumors that
he didn't own cents worth of property in
that city of shoes. Soon he called for help
from his friends here who seemed ready to
assist him, he making to them statement
that his assets were far beyond all his liabili
ties. Another statement was secured which
made altogether a different exhibit, showing
that his resources were not sufficient to to pay
fifty cents on the dollar Of his Indebtedness
thus involving to the amount of some six
nd n fha ~ I,c IoJ
forward as his sureties. The men and women
who had worked for Donahoe were clamor-
Gus for their pay; bills innumerable from all
sources came in, and two or three months
since Mr.. Donahoe was obliged to shut up
shop We cannot afford space to go into the
details of this complicated case. 1t is now to
come before the Supreme Court for its adjudi-
cation.
On Friday, Mr.. Donahoe was arraigned in
the municipal court, before Judge True, and
plead not guilty to the charge preferred. The
case was continued Saturday, lasting all day,
and excited considerable interest. 1t was
opened briefly by VIM p. Whitehouse, ESQ.,,
for the government, who read the statute I'M
der which the complaint was issued. Hon
Warren Johnson was the fret witness for the
government. 1t appearei from his testimony
that he had assisted the respondent in financial
matters, by endorsing certain notes, previous
to which Mr.. Donahoe furnished him state
ment of his financial condition, which salts
fed Mr.. johnson at the time that the respon-
dents resources were ten or fifteen thousand
dollars more than his liabilities and that he
was not doing losing business. Believing
this statement to be true, Mr.. johnson en-
dorsed notes for the respondent to the amount
of about seven thousand dollars. Subsequent
~ the statement of the respondent was found
to be incorrect, and instead of being ten
thousand dollars ahead, the respondent was
several thousand dollars behind. according to
the statement of Mr.. Johnson. On the cross
examination it appeared that Mr.. Johnson is
secured in part by the transferal to him of the
machinery and stock Of the concern, and tina,
he will lose nothing unless he hiss to pay GER
tain notes which have no. yet matured.
Hon. q. G. Stacy was the next witness.
He finds himself on the same paper with Mr..
through the misrepresentation of the respon-
dent as to his financial ability In addition
TO this, as appears by his statement, he has
loaned the respondent other money, and i.
would seem to appear that be is out several
thousand dollars.
Mr.. Smith, the present foreman of the fac
tory, and Mr.. Boothby, the hook keeper,
were examined and testified in regard to the
machinery and other matters pertaining to the
running ofthc concern.
Z. F. Pillsbury, Esq, the counsel for Mr..
Donahoe. having drawn the trumps of the
government, decided not 10 show his hand,
but waived 4 further examination at present.
The respondent furnished bail in the amount
of $1,000 to appear At the Supreme judicial
Court, TO ne held in this city on Tuesday,
when the trumps held by Mr.. pillsbury are
expected to be played,
Immediately after the examination Mr..
Donahoe was again arrested on two actions
for debt.