Published: July 12, 2008 08:03 pm            

HISTORICAL PERSPECTIVE: The misadventures of Jacob R. Finkelstein

TERRE HAUTE — Regrettably, the story of former Terre Haute businessman Jacob R. Finkelstein has never been told.

And it is doubtful that all of his misadventures will ever be chronicled. The following paragraphs barely scratch the surface.

On several occasions, his name has been mentioned in past columns on this page. Born in Iowa and raised in Indianapolis, Jacob came to Vigo County in 1899 as a principal in A.L. Greenberg Iron & Rail Company, specialists in new and used machinery and heavy equipment.

Other principals in the business were his father-in-law Abraham L. Greenberg and his brother-in-law Samuel T. Greenberg.

The company maintained its headquarters and yard at 1026 Crawford St.

A major contributor to the Republican Party, Finkelstein earned national notice when he took a live goose to the White House as a gift for President William Howard Taft.

He was a close friend of James Eli Watson, popular U.S. senator from Indiana, who stayed at the Finkelstein home at 416 S. Fifth St. whenever he visited Terre Haute.

Finkelstein, Watson and several Indianapolis politicians allegedly had a $500,000 investment in public lands in the southwest U.S.

Jacob also was on a first-name basis with Speaker of the House Joseph G. Cannon of Illinois, a former resident of both Parke and Vigo counties.

Yet Finkelstein had a penchant to get into trouble. And to get out of it.

In June 1915, he was indicted for bribing Lost Creek Township trustee Thomas Ferguson to influence the purchase of road equipment and material. When the indictment was publicized, newspapers noted that Jacob had been indicted in Springfield, Ill., “several years ago” for “wholesale bribery of road officials.”

Finkelstein successfully resisted extradition until the Illinois case was dismissed.

Having invested in the Linton Rolling Mill in 1905, Finkelstein founded the Hoosier Rolling Mill Company of Terre Haute in 1920 and commenced construction of Indiana’s largest steel factory at the northwest corner of Fort Harrison and Fruitridge avenues. The company was capitalized for $5 million.

In conjunction with the construction of the rolling mill, Finkelstein platted several adjoining subdivisions collectively referred to as the community of “Steelton.”

“Chicago has Gary,” Finkelstein proclaimed. “Terre Haute will have Steelton.”

Community excitement about the project was palpable. The rolling mill superstructure was finished and lots were sold. Noted landscape architect George E. Kessler proposed locating the 40-mile Paul Dresser Drive along Fruitridge, a boulevard separating the Hoosier Rolling Mill at Steelton on the west from Forest Park and Markle’s Mill on the east.

When the project stalled, Finkelstein came under scrutiny. Lovell Waterman, stepson-in-law of millionaire Demas Deming, led a large group of Terre Haute businessmen to try to save Finkelstein’s ambitious undertaking. Jacob transferred the lots in Steelton to Indiana Corporation, the general partner of a limited partnership, and the enterprise resumed peddling and promoting the lots in Steelton.

Finkelstein was listed as an unsecured creditor of the limited partnership, but his claim was last to be paid.

The Indiana Corporation venture was unsuccessful and the Hoosier Rolling Mill property was placed in the hands of a receiver. No criminal charges were filed. Steelton Road is a reminder of Finkelstein’s venture.

On the heels of that debacle, Finkelstein allegedly received a $100,000 commission to promote a rolling mill in Tampa, Fla. That project also failed and rumors surfaced that Jacob might be indicted. Nothing materialized.

Finkelstein and wife Bertha moved to Chicago from Terre Haute in late 1925, taking up quarters at The Congress, one of the Windy City’s most elaborate hotels. Giving his occupation as a principal in American Reduction Corp., 105 West Adams St., he apparently spent considerable time lobbying and promoting mergers and acquisitions.

On March 13, 1934, Finkelstein was arrested and charged in the U.S. District Court in Chicago with failing to file a 1930 income tax return.

Chicago newspapers gave considerable space to the charges, asserting that the information stated he received $50,000 in commissions during 1930 from Grigsby-Grunow Company, a manufacturer of radios and electric refrigerators.

Grigsby-Grunow Co. filed bankruptcy in early 1930.

It also was alleged that Jacob earned a $15,000 commission in 1930 for services in connection with a merger of two loan companies and another $8,500 for representing Morgan Utilities in tax matters before the Internal Revenue Service.

News reports suggested that the U.S. District Attorney might ask the Attorney General for permission to call a grand jury to study Finkelstein’s financial transactions.

Records of further investigations have not been uncovered.

        

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