After boarding at George Metcalfe's High School, Goulburn, he went up to the University of Sydney and graduated with a Bachelor of Arts in 1876.
[5] In March 1889, as Minister of Public Instruction, he joined Henry Parkes's last ministry, and soon showed himself to be an energetic administrator.
Lee was not very successful and soon Carruthers replaced him as leader of the New South Wales opposition, creating the Liberal and Reform Association as the successor to the Free Trade Party.
Carruthers had deliberately moved the party away from the tariff issue, which was now a Federal responsibility, and established a broad platform embodying the principles of Gladstonian classical liberalism.
[9] He positioned his support for enterprise and economic freedom against what he saw as the increasingly socialistic policies of the Progressive Minister for Public Works Edward William O'Sullivan and the Labor Party, arguing that politics required clear 'lines of cleavage' with a two-party system to give people a clear choice at elections.
[10] In doing so Carruthers placed his liberal party on the centre-right of the political divide, a move George Reid would copy with his Federal anti-socialist campaign.
Although Carruthers had a majority of only one in the House, many of the Progressives gave him tacit support and his ministry never seemed to be in real danger during its term of office.
As Premier and Treasurer, Carruthers did admirable work and not only showed increasing surpluses each year, but at the same time, succeeded in reducing taxation and railway rates.
This new tier of government was set up without a significant increase in taxation, as the existing land tax was transferred to become council rates.
[12] Curruthers officially opened the blast furnace at Lithgow, in May 1907, an event that began the modern iron and steel industry in Australia.
[13] In 1905–06, a royal commission inquired into land scandals and investigated accusations made against Carruthers and the behaviour of his law firm.
To distract attention, even suggestion secession, he launched an attack on the Federal Government's recent increase in tariffs, particularly on wire-netting.
Though he did not hold office again for many years and controversially suggested during World War I that New South Welshmen "ought to go down on (our) knees and pray (to) God to give us another Cromwell, who will send our Parliaments and our Politicians to the roundabout",[14] he was a power behind the scenes in the politics of his day.
In April 1922 he joined the coalition ministry under Sir G. W. Fuller as vice-president of the executive council and leader of the upper House, and remained in office until June 1925.
As part of that role, he steered the Sydney Harbour Bridge Bill through what was at times quite a hostile Legislative Council.
A state funeral was attended by many notable Sydney citizens at All Saints Church, Woollahra on 12 December 1932, and later at his burial at South Head Cemetery.
Always a popular MP with his constituents, Carruthers has by later commentators been judged "a peppery little man" (John La Nauze) of "untiring energy" (Percival Serle).