Spender was eliminated on the first ballot , and Hughes narrowly defeated McDonald on the second .
There were three candidates -- former prime minister and attorney - general Billy Hughes , former army minister Percy Spender , and former external territories minister Allan McDonald .
army minister was eliminated on the first ballot , and prime minister narrowly defeated territories minister on the second .
There were three candidates -- former prime minister and attorney - general Billy Hughes , former army minister Percy Spender , and former external territories minister Allan McDonald .