Although Anderson's father had first migrated to California from Pennsylvania shortly after the California Gold Rush in 1852, Anderson was born in Crawford County, Pennsylvania in 1867. His family returned to California several months later and settled in San Jose.[4]
Anderson attended the University of the Pacific and afterward worked in his father's fruit packing business, before starting his own fruit business in Suisun City in Solano County.[4] He went on to represent Solano County in the 1897 and 1901 sessions of the Legislature.[2] Anderson moved to Sacramento in 1902, where he was a founder and president of the Capital National Bank.[4][5]
Elected lieutenant governor in 1902, Anderson served for a single term under Governor George Pardee.[4] He later served as state superintendent of banks from 1909 to 1910.[5] Anderson ran for governor as a Republican in 1910 but was defeated in the primary by Hiram Johnson.[6]