In 1934, Davy was approached by another Auckland businessman, William Goodfellow. Goodfellow agreed to finance another new party, dedicated to opposing the government's "socialism". The group was named the Democrat Party, and Thomas Hislop, a former Mayor of Wellington, was recruited to be its political leader. Goodfellow later withdrew from the party, saying the Davy's goals were unrealistic and that resources were being spread too finely, but Davy pressed on. In the 1935 election, however, the Democrats failed to win any seats. According to some, the party merely succeeded in splitting the right-wing vote, assisting the Labour Party in its landslide victory.