Wilhelm Justus Goebel was born January 4, 1856, in Albany Township, Bradford County, Pennsylvania, the son of Wilhelm and Augusta (Groenkle) Goebel, immigrants from Hanover, Germany. The first of four children, he was born two months premature and weighed less than three pounds. His father served as a private in Company B, 82nd Pennsylvania Infantry Regiment during the American Civil War, and Goebel's mother raised her children alone, teaching them much about their German heritage. Wilhelm spoke only German until the age of six, but embraced the culture of his birth country as well, adopting the English spelling of his name.

In 1887, James W. Bryan vacated his seat in the Kentucky Senate to pursue the office of lieutenant governor. Goebel decided to seek election to the vacant seat representing the Covington area. His platform of railroad regulation and championing labor causes, combined with the influence of Stevenson, his former partner, should have given Goebel an easy victory, but this was not to be. A third political party, the Union Labor party, had risen to power in the area with a platform similar to Goebel's. However, while Goebel had to stick close to his allies in the Democratic party, the Union Labor party courted the votes of both Democrats and Republicans, and made the election close - decided in Goebel's favor by a mere fifty-six votes.  With only the two years remaining in former senator Bryan's term to distinguish himself before a re-election bid, Goebel took aim at a large and popular target: the Louisville and Nashville Railroad. A proposal from pro-railroad legislators in the Kentucky House of Representatives to abolish Kentucky's Railroad Commission was passed and sent to the Senate. Senator Cassius M. Clay responded by proposing a committee to investigate lobbying by the railroad industry. Goebel served on the committee, which uncovered significant violations by the railroad lobby. Goebel also helped defeat the bill to abolish the Railroad Commission in the Senate. These actions made him a hero in his district. He ran for a full term as senator unopposed in 1889, and won another term in 1893 by a three-to-one margin over his Republican opponent.  In 1890, Goebel was a delegate to Kentucky's fourth constitutional convention, which produced the current Kentucky Constitution. Despite the high honor of being chosen as a delegate, Goebel showed little interest in participating in the process of creating a new constitution. The convention was in session for 250 days; Goebel was present for just 100 of them. He did, however, successfully secure the inclusion of the Railroad Commission in the new constitution. As a constitutional entity, the Commission could only be abolished by an amendment ratified by popular vote. This would effectively protect the Commission from ever being unilaterally dismantled by the General Assembly.

Were his ideas well received?
Goebel also helped defeat the bill to abolish the Railroad Commission in the Senate. These actions made him a hero in his district.