That was before the Progressive Era. During the 1890s and early 1900s, the Progressives, after failing to control the Republican Party, began concentrating their efforts on the Democratic Party. By the time the Depression hit, they had completely taken over academia and had their people conveniently spread out throughout the media. From then on we've essentially been a two-party system because over 75% of the America public is Progressive to some extent.
If we're ever going to get a non-progressive party to challenge to two-party system, we're going to have to change public opinion.
"The truth is that neither British nor American imperialism was or is idealistic. It has always been driven by economic or strategic interests." - Charlie Reese
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