Carpenter was a major in the United States Air Corps from 1942 to 1945 during World War II. He was elected mayor of Scottsbluff in 1947, but later stepped down due to perceived conflicts with his many businesses in the city. He founded a new village on the other side of the river from Scottsbluff in 1949 and called it Terrytown. He based his new businesses there, selling liquor by the drink before Scottsbluff did, starting a radio station, a drive-in movie theater, and two restaurants.