1880 campaign

In 1880, the New Jersey Democratic convention nominated Ludlow for Governor. His nomination was largely the result of an alliance between Leon Abbett and the "State House Ring," a group of influential state legislators opposed to Abbett's rivals.^[1]

In the general election, Ludlow faced Republican Frederic A. Potts. Both candidates were closely associated with the railroad industry; Ludlow as counsel for the Pennsylvania and Potts as an influential stockholder in the Jersey Central Railroad. In the end, Ludlow won by a mere 651 votes of some 250,000 ballots cast, the closest result in New Jersey history by raw votes^[1] and the closest by percentage margin until 1981.

Term in office

Ludlow entered office facing Republican control of both houses of the legislature and amid rumors that the Pennsylvania Railroad had ordered its employees to vote for him. He was also beholden to the State House Ring for his nomination and had little power within his own party.^[1] Overall, his administration has been characterized as "honest and diligent but basically unproductive."^[1]

In 1882, Ludlow vetoed a bill to allow the Central Railroad of New Jersey's board of directors to increase the corporation's capital stock without shareholder approval, thus removing control from the stockholders. He denounced the bill as immoral and unjust. However, the veto was overridden by large majorities of both houses.^[1] In the same session, Ludlow vetoed a bill to limit public access to large areas of the Jersey City waterfront, which would have aided the Pennsylvania Railroad in a legal battle against the city. He denounced that bill as "an abuse of legislative power and a violation of the principles of fair dealing and justice." The bill was passed again by the Senate but derailed in the Assembly amid bribery charges and a legislative investigation.^[1]

Ludlow's term was also dominated by difficulty balancing the state budget following the 1880 abolition of the state tax and his own desire for further tax relief. After running a deficit of approximately $281,000.00 in 1882 (equivalent to $8,871,848 in 2023), Ludlow placed greater emphasis on increasing taxes on corporations, especially railroads.^[1] Ludlow was also the first governor to devote attention to clean water access; established a council to oversee asylums, prisons, jails and almhouses; and signed a law classifying municipalities into four groups.^[1]

Post-governorship

In 1894, Ludlow served on the twenty-member commission established to recommend amendments to the state constitution.^[1]

In 1895, Governor George T. Werts appointed Ludlow to serve on the New Jersey Supreme Court.^[1]