In 1908, Donaghey won a three-way
primary election that broke the hold of Jeff Davis on the
Arkansas Democratic Party. He then attained an easy victory in the gubernatorial
general election with 106,512 votes, over
Republican John I. Worthington (42,979) and
Socialist J. Sam Jones (6,537). Donaghey had to wait ten months to take office. In the meantime he traveled the country, and as professor
Calvin Ledbetter, Jr. of the
University of Arkansas at Little Rock points out in his book
The Carpenter from Conway, Donaghey educated himself for the political office which awaited him. In June 1909, he appointed the fourth and final state capitol commission and hired
Cass Gilbert for the architecture project. In autumn 1911, he appeared with
Booker T. Washington at the
National Negro Business League and said to an audience of one thousand black men to "not waste their time running around begging for social equality".
The Chicago Defender quoted him as saying "You must ride in the last two seats in our street cars; you must not sit in a Pullman car; you must not ride on the same deck, nor eat in the same restaurant, nor drink in the same saloon as me...You are a race of degenerates, your women are lewd and we cannot afford to have our white women and children associate with you". Donaghey's progressive stance procured passage of the Initiative and Referendum Act by which Arkansans can take governmental matters into their own hands and bypass the state legislature. He recruited
William Jennings Bryan to help campaign for the amendment's adoption in 1910. Arkansas is the only state in the
American South to grant its citizens such power. The initiative, which began in
South Dakota, is otherwise particularly known in
California and
Colorado. The Donaghey administration focused on roads, public health, and railroads. Donaghey was vehemently opposed to
the use of prisoners for contract-leased labor, especially for building railroads. He particularly learned about convict lease while at a Southern governors' conference in
West Virginia in autumn 1912. Unable to get the legislature to abolish the practice, he prior to leaving office
pardoned 360 prisoners, 44 in country farms and 316 out of 850 in penitentiaries as well as the first businessman to become governor of Arkansas. ==After being governor==