In September of 1919 an
African American named Willy Brown was dragged from the
Douglas County Courthouse and
lynched by a mob of white men. While there were reports that the violence was led by a variety of sources, current scholarship places responsibility on the shoulders of
Tom Dennison, who was acting on behalf of Dahlman. A contemporary
grand jury trial corroborated this claim, stating the riot "was not a casual affair; it was premeditated and planned by those secret and invisible forces that today are fighting you and the men who represent good government."
After keeping the mayorship for three terms in a row, Dahlman lost the 1918 election to
Edward P. Smith, a reformist Republican who was supported by the powerful
Omaha Church Federation and the Douglas County Dry League. He focused his slate on making Omaha a dry city, cleaning up the "vice" elements of the city, and securing a positive future for the city's businesses. Smith and the city commission that shared his reformist objectives were the bane of Tom Dennison. Dennison's men dressed in
blackface, masqueraded around the city performing a variety of crimes, including raping a white woman, and afterwards went from saloon to saloon throughout the city raising the ire of many citizens.
After Smith was lynched by the mob and saved by a last-minute rescue by unknown agents, his political career was over. He refused to take any action with the city commission, and in 1921 Dahlman's ticket was elected back into control of the city.