Kidston's party won the most seats, and formed a government with Labor's support. Kidston immediately acted to curtail the Council's powers. He also proceeded with laws enacting electoral reform and the establishment of Wages Boards. However, he lost Labor's support when he authorised private railway construction in the state, but remained in office, supported by Philp's conservative grouping. In late 1908, presaging the Fusion in the Commonwealth Parliament, Kidston's and Philp's parties merged into one anti-Labor force. After several of his former supporters deserted him, Kidston called another election in October 1909, which his Liberal Party won comfortably.