On April 12 1865, just days after the official end of of the Civil War, the Murphy House and the city were occupied by Union forces after General James H. Wilson conducted a cavalry raid into central Alabama beginning on March 22 to destroy the state's arms manufacturing factories and other war-related industries. General Ulysses S. Grant directed Wilson several months earlier to lead the campaign. Over 13,000 cavalry were under his command. They met little resistance as Confederate forces were too low in numbers and spread out in the state (and many were sent to fight General Sherman on his March to the Sea campaign). In military terms, Wilson's raid was successful, as it destroyed the last vestiges of the state's arms manufacturing capabilities. However, historians dispute its significance because the Confederacy was already close to defeat, and General Robert E. Lee surrendered on April 9, 1865.
The Murphy family's wealth declined after the war and were forced to rent the house out. In 1902, they sold it to an Elk's lodge. It was sold to the Montgomery Water Works and Sanitary Sewer Board in 1967, which restored and converted it to office. They continue to own the building today.