Democratic nominee, Ashton C. Shallenberger, who was viewed as "being under railroad influence," 97,858 (53.5 percent) to 84,885 (46.5 percent). Sheldon became the first Nebraska governor born in the state and one of its youngest ever. With huge majorities in both chambers of the legislature (Nebraska's legislature would not become unicameral for another twenty years), Sheldon moved quickly to redeem his campaign promises. Accordingly, the 1907 legislative session has been characterized by historians James C. Olson and Ronald C. Naugle as creating "more important and more permanent changes in the political structure of the state than those of any other." These included prohibitions on the free train passes that railroads had previously distributed generously to influence politicians, a restriction on train passenger fares to no more than two cents, and the establishment of a state railway commission. That year Sheldon also signed a child labor law, an anti-discrimination law, a law forbidding brewers from owning any part of a saloon, and legislation creating a state board of pardons and a bureau charged with investigating agricultural pests and plant diseases. The 1907 legislature also enacted a statewide direct primary law, but that would continue to be a hot political issue for many years and be frequently revised. Sheldon ran into two political hurdles to his re-election. First, bank deposits had seemed especially at risk during the financial panic of 1907, when many banks failed. However, although Sheldon personally favored a state law guaranteeing bank deposits similar to the one in Oklahoma territory, the Republican convention overwhelmingly voted it down. Second, he fought hard for an option for individual counties to prohibit liquor, losing many "wet" votes that he might otherwise have picked up. Ashton Shallenberger secured the Democratic nomination, and campaigned hard for a state bank guarantee law. He skillfully allowed "dries" think he was for prohibition and "wets" to think he was against it. Shallenberger decisively beat Sheldon, 132,960 to 125,976, and the Democrats gained majority control of both houses of the legislature. Mississippi After his defeat, Sheldon moved to his plantation in Mississippi, and became active in state politics there. He was elected to the Mississippi House of Representatives. While Sheldon was publicly a staunch Republican, he was elected in the 1918 Democratic primary. He registered as a Republican while in the Mississippi House of Representatives. He retired after a single term due to financial conditions on his plantation.