On the 5th day of August 1886, Mifflin Kenedy, President of the San Antonio and Aransas Pass Town Site Company, purchased from George W. Little and his wife Anne Land that would become the site of the town of Kenedy. On June 7, 1887, Mr. Kenedy deeded the property to the Company, and the town of Kenedy was surveyed and laid out into lots.
When construction of the railroad had reached a point about one mile south of where Karnes City now is located, a station called Kenedy to honor Mifflin Kenedy was established. It was very near the geographical center of the County. The station was equipped with a turntable, a depot, and eating and bootlegging joints. There were passenger, mail, freight, and work trains every day. The George B. Livingston and the C. P. Dailey families were residents there. Mr. Livingston, being an employee of the railroad, resided in the depot, and the Dailey family lived across the street.
Construction work proceeded south from the station and reached the site of what is now the city of Kenedy. Here a three-way junction was established in the railroad. It was the intention to move the equipment of the first Kenedy station (now old Kenedy) to the junction as soon as possible to establish a new station, also called Kenedy.
Early in the spring of 1887, the railroad built a depot and a two-story hotel with a lunchroom (later The Beanery) at the junction. The post office was moved down from the old Kenedy station and located in the southwest corner ground floor of the hotel. To distinguish the two stations, the new one was called Kenedy Junction.
- P. Dailey was commissioned Postmaster March 12, 1887. The post office remained in the hotel while Mr. Dailey moved his store from Daileyville to a lot in the new town that was in the process of being surveyed. The store was to house the post office for the new town.
On June 21, 1887, the post office was moved from the Railroad Hotel into the store, and Mr. Dailey was re-commissioned Postmaster at the same time to conform with the change in name from Kenedy Junction, the name of the railroad station, to Kenedy, the name of the new town.
Mr. Dailey purchased the first lot in the new town of Kenedy from the Site Company July 2, 1887. It was lot #12 in block #1 upon which his store had been placed.