He was arrested and jailed by the Republic of Hawaii in the aftermath of the 1895 Counter-Revolution and then exiled to San Francisco where he died of pneumonia.

While in Boston, he also helped established, with William E. Chase, a local newspaper called The Daily Bee.

[13] In between his political involvements, Peterson continued his private practice in Honolulu and "was the acknowledged head of his profession in Hawaii having established for himself a reputation for ability and integrity excelled by none at the Hawaiian bar".

[3] In the aftermath of the unsuccessful 1895 Counter-Revolution, Peterson and other royalists were arrested and imprisoned by the forces loyal to the Republic of Hawaii.

After his release, he was exiled along with former Attorney General Charles F. Creighton and other political dissidents to San Francisco.

"[1][2][3] He was survived by his wife Nettie Lincoln Brown (1865–1953) and daughter Myra Peterson (1886–1973) who were residing in Onset, Massachusetts, at the time of his death.