In 1903 an alliance of disaffected Ministerialists, Liberals and the ALF brought down Philp's government and replaced him with Arthur Morgan. Kidston, a close friend of Morgan, again became treasurer. He was, along with William Browne, one of two Labor members of the ministry. After Browne's death in 1904, Kidston became the most senior Labor minister. The parliamentary situation, with equal numbers for both the Morgan-Kidston coalition and the ex-Ministerialists, proved unwieldy, and an election was called. Labor became the largest party in the parliament but Kidston was content to let Morgan retain the dominant role in the coalition. Kidston defended Labor's coalition with Morgan, arguing that it had resulted in a public works programme, and fairer taxation and electoral systems.