1967 Mississippi gubernatorial election

Phillips, a former Democratic public service commissioner, had no running-mate. His previous nominee for lieutenant governor, Stanford Morse, endorsed Williams. Phillips later said that the GOP did not at the time realize the importance of offering full candidate slates.[9] The unopposed Democratic nominee for lieutenant governor, Charles L. Sullivan of Clarksdale, had defeated in his party's primary Governor Paul Johnson, who ran in 1967 for his former post of lieutenant governor. At the time Mississippi governors could not succeed themselves but could sit out a term and enter the next race four years later.[10] Sullivan earlier said that he could work with either Phillips or Williams, but he endorsed the Democratic nominee, having verbally sparred with Phillips at a meeting in Biloxi of the Mississippi Manufacturing Association.[11]

Clarke Reed of Greenville, who succeeded Yerger as state chairman in 1966, recalled that Phillips did not wish to run for governor again in 1967 but was persuaded to do so by party leaders in need of a candidate though there was little expectation of success.[12] For his second race, Phillips shed his past segregationist image and ran to the middle, as had Williams' unsuccessful primary opponent, state Treasurer William F. Winter, who ultimately won the governorship in 1979. Time magazine called Phillips "an erstwhile segregationist who this year appealed for an end to the racial rancor."[13] Phillips later said that his moderate stance hurt the Republicans at that time but that the party since "benefited from the things we did."[10]

In a television address, Phillips reaffirmed his belief in segregation but spoke in conciliatory language toward African Americans:

The influence of race ... is so dominant that it is utterly unrealistic to expect any significant progress in such vital fields as education, economic development, and federal-state relations until we have brought the race issue out into the open and begun, at least begun, to deal with it effectively. ... I advocate spending money to develop our underdeveloped human resources ... with the expectation of getting all that money back ... With God's help and your help, I will bring peace and harmony and material progress to Mississippi.[14]

The Meridian Star charged that Phillips had "made it plain that he is no conservative. He is a member of the Republican Party, not just here ... but at the national level."[15] The Clarion-Ledger judged Phillips' in his second race as "a weak candidate with a weak pitch" and termed his prospects as virtually "hopeless."[16]

Phillips took other heretical positions, having urged a "long-range master plan for education" and the reinstatement of compulsory attendance, which had been repealed in 1958.[17] Phillips questioned the need of the Mississippi Milk Commission, which he said kept the price of milk artificially too high.[18]

Presidential politics played some role in the 1967 campaign, as Williams stressed his friendship with George C. Wallace of Alabama, who was preparing for an independent candidacy in 1968. Phillips countered that only a Republican, perhaps Nixon or Governor Ronald Wilson Reagan of California, could defeat a national Democratic presidential nominee. Reagan cut a campaign commercial for Phillips; Maureen Reagan made some twenty appearances on Phillips' behalf at various places in the state.[19] Neighboring Governor Winthrop Rockefeller of Arkansas, younger brother of Nelson Rockefeller, spoke in Corinth and assisted Phillips in fundraising. Phillips raised $300,000 in the 1967 race.[20]

Williams rejected Phillips' pleas for debates, as had Paul Johnson in 1963. In fact, the congressman spent few days on the general election campaign trail and urged friends "to do the campaigning for me."[21] Williams, who had lost the lower part of his left arm while service in the United States Army Air Corps during World War II, was hospitalized during the campaign with a leg ailment, which also stemmed from war injuries.[22] At a $40 per person fundraiser attended by some five thousand and hosted by the state's congressional delegation, Williams vowed to "destroy that Republican crowd so bad that they won't be able to find a Rubel in the rubble."[23]

Phillips obtained the endorsement of the Mississippi Freedom Democratic Party, which sent a rival delegation to the 1964 national party convention in Atlantic City, New Jersey, but he repudiated the support of that group.[24] The Freedom Democrats backed Phillips because he had expressed doubts that Williams as governor would be able to fight the desegregation policies of the then United States Department of Health, Education and Welfare.[25]

As in 1963, the Greenville Delta Democrat-Times endorsed Phillips, having hailed his racial-moderation speech as "frank, honest, courageous ... the unvarnished truth."[26] The paper claimed that Phillips had abandoned the earlier GOP efforts to "out-Dixiecrat the Dixiecrats," a reference to Strom Thurmond's 1948 presidential campaign.[26] An unidentified Republican told U.S. News & World Report that the GOP had "thrown off the tag of being a racist, segregationist party in the South."[27]