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On his return to Texas, House ran his family's business. He eventually sold the cotton [[plantations in the American South|plantation]]s, and invested in banking. He was a founder of the [[Trinity and Brazos Valley Railway]]. House moved to New York City about 1902.
In 1912, House anonymously published a novel called ''[[Philip Dru: Administrator]]'', in which the title character leads the democratic Western U.S. in a civil war against the [[plutocratic]] East, becoming the dictator of America and turns it into “Socialism as dreamed of by Karl Marx”.<ref>{{Cite book |last=Edward Mandell House |url=https://archive.org/details/philipdruadmini00housgoog/page/n58/mode/1up |title=Philip Dru: Administrator: A Story of Tomorrow, 1920-1935 ... |date=1912 |publisher=B. W. Huebsch |others=Harvard University |language=English}}</ref> Dru as dictator imposes a series of reforms which resemble the [[Progressive Party (United States, 1912)|Bull Moose platform of 1912]] and then vanishes.<ref>Lasch, pp. 230–35.</ref>
House helped to make four men [[governor of Texas]]: [[Jim Hogg|James S. Hogg]] (1892), [[Charles Allen Culberson|Charles A. Culberson]] (1894), [[Joseph D. Sayers]] (1898), and [[S. W. T. Lanham]] (1902). After their elections, House acted as unofficial adviser to each. In 1893, Hogg appointed House to his military staff with the rank of [[Lieutenant colonel (United States)|lieutenant colonel]], a position which came with a title but no actual military responsibilities.<ref name=Volume_1>{{cite book |last=Richardson |first=Rupert Norval |date=1964 |title=Colonel Edward M. House |volume=1 |url=https://books.google.com/books?id=amYBcP-OYJ8C&q=%22lieutenant+colonel%22 |location=Abilene, TX |publisher=Hardin-Simmons University |page=223}}</ref> He was reappointed by Culberson, Sayers, and Lanham, and was soon known as "Colonel House", the title which he used for the rest of his career.<ref name=Volume_1/>
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