He lost a bid for re-nomination in 1922 to California State Treasurer Friend William Richardson, who campaigned as a conservative.

[1] His days in the railroads came to an end in 1887 when his mother, Alvira, now falling ill, sought a hot and drier climate to improve her health.

In 1906, Stephens served briefly as a major in the California Army National Guard during the San Francisco earthquake as part of the First Brigade.

By mid-year, Johnson had selected Stephens as Eshleman's successor, forcing him to resign his U.S. House seat and assume the position of lieutenant governor on July 22.

The attack was blamed on left wing radicals, in particular former Industrial Workers of the World member Thomas Mooney, and his alleged accomplice, Warren Billings.

However, international sympathy for Mooney quickly spread, making him one of the United States's most famous political prisoners.

Despite this slight clemency, militant labor radicals continued to pressure Stephens, resulting in threats, and eventually, actions of violence.

In an unrelated threat, labor radicals also threatened to destroy both the California State Capitol and the Governor's Mansion if a $50,000 ransom was not met.

[4] Despite numerous threats on his life and state property, Stephens refused to pardon Thomas Mooney for the remainder of his administration.

[6] After his successful election to a full four-year term as governor, Stephens grew increasingly concerned over the needs of returning World War I veterans.

Stephens argued that the state government had a mandate to provide benefits for returning veterans, such as government-sponsored retraining and funds to help re-employment.

Like his predecessor Hiram Johnson, Stephens remained highly suspicious of Asian immigration to California, especially from Japan, which he viewed as an increasingly belligerent nation.

In 1919, Stephens openly urged the California State Legislature to enact stricter exclusion laws to restrict Japanese immigrants.

He was part of the general welcoming committee when Edward, Prince of Wales, arrived aboard HMS Renown in San Diego Bay in 1920, during the future British monarch's first visit to California.

In the final months of his governorship, Stephens vetoed bills that would deregulate state utilities, vowing to keep Johnson's Progressive reforms.