[4] Following the death of his father-in-law, Patrick Halley, in 1956, Murphy became president of the company and , as a successful businessman, expanded its iconic retail chain, The Arcade, to nine stores in the St. John's and Conception Bay South region.
Murphy ran unsuccessfully as a Liberal candidate in the 1966 provincial election and again in a by-election in 1970.
Elected to St. John's City council in 1973, receiving the highest number of votes, he became deputy mayor.
[5] During his 17 year tenure as Deputy Mayor and Mayor, Murphy accomplished many things, but his legacy would be his success in the start of the revitalization of his historic city by lobbying federal and provincial governments for funds and programs to restore downtown residential properties.
As a strong proponent of education, he served on The Royal Commission on Education in Newfoundland in 1967/68, sponsored public speaking contests amongst students in St. John’s, and established a scholarship at Memorial University School of Business.