 While Minister of Labour in 1923, Murdock was embroiled in controversy after he withdrew funds from the Home Bank of Canada a day or two before its collapse based on information he obtained as a member of the Cabinet.He was defeated in the 1925 election in the riding of Toronto—High Park and again in 1926.In 1930, he was summoned to the Senate representing the senatorial division of Parkdale, Ontario on the advice of Prime Minister Mackenzie King.