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On taking office, Johnston proposed a series of bills to aid the state's textile workers.
An ardent New Dealer, Johnston managed to push his legislative program through the state house of representatives only to meet defeat in the Lowcountry-dominated state senate.
In what has become the most famous fight between a governor and legislature in South Carolina history, Johnston tried to dismiss a number of members of the powerful State Highway Commission.
After the commissioners refused to leave their posts, Johnston mobilized the National Guard to occupy the offices of the Highway Department.
Ultimately, Johnston lost his battle with the Highway Commission, and severely wounded his already poor relationship with the legislature.
Johnston lost his power to name highway commissioners, a power that the governor's office has never regained.

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