Jacob Rutstein

Jacob Rutstein
Jacob Rutstein and wife. Brooklyn, New York 1908
Born	Jacob Rutstein April 15, 1877 Tolochin, Belarus
Died	February 27, 1946(1946-02-27) (aged 68) Brooklyn, New York
Nationality	United States
Other names	Jay R. Rutstein
Occupation(s)	Real estate developer businessman lumberman
Known for	Jew Plank
Spouse	Bessie Poretzky

Jacob Rutstein (1877–1946), also known as J.R. Rutstein, was an American businessman, merchant, philanthropist and lumber magnate who became known for his innovations to the lumber Nominal Measurements or Nominal Size commonly known as 'Jew Plank'.

Early life

Jacob Rutstein was born Yankev Rutstein into a poor family in a small hamlet, Tolochin, in central Belarus. From an early age, Jacob's father took him to the Tolochin farmers and commodities market, the latter of which dealt primarily in lumber. From doing business with the Russian peasants, Jacob developed a keen business acumen, and by the age of twelve, he far exceeded his own father's business prowess. During his teenage years, Rutstein was drafted into the Russian army after which he was recruited by a German company supervising the import of lumber into Western Europe. At 18, Jacob was promoted to the General Manager of the Tolochin region. Over time, Jacob amassed a fortune which he subsequently deposited in London. In 1902, at the age of approximately twenty-five, Jacob, fleeing religious persecution, immigrated to the United States via London. Unable to bring his assets from Europe into the United States, he settled in the Lower East Side of Manhattan bereft of his former fortune.

Development of Brownsville, Brooklyn

By 1909, Rutstein had migrated from the Lower-East-Side where had been working in a sweatshop for $3 a week to Brownsville, Brooklyn where he gained entry into the real estate industry. At the time, Brownsville, located in Eastern Brooklyn, New York City was a growing residential neighborhood with a large demand for modern housing. By 1912, Rutstein founded Brownsville Housewrecking Company which facilitated house demolition and salvaged and sold used lumber. At the same time, Rutstein began acquiring land throughout Brooklyn - from Brownsville, Brooklyn to what would become Shore Road along the Belt Parkway. Rutstein's success in the wrecking and lumber businesses evolved into the formation of another company, and in 1922, Rutstein formed the Brownsville Lumber Company which he used as leverage to become a builder and developer. The increased demand for timber led Rutstein to acquire lumber fields as far away as Oregon. Rutstein was able to sell cheap lumber at reduced rates and undercut his competition. In control of the lumber supply, Rutstein undertook large building campaigns throughout Brooklyn and especially in Brownsville. The New York Times described Rutstein as "a pioneer builder in the Brownsville-East New York section of Brooklyn."

Prudential Lumber Corporation & The Nominal Measurement Revolution

In the midst of the depression, in 1930, Rutstein formed the Prudential Lumber Corporation. Despite the collapse of the economy, demand for lumber continued. Since 1918, Rutstein had been experimenting with different nominal lumber measurements. Rutstein innovated an 11/4 wooden plank whereby the price of lumber was reduced 1/12 or about 8%. At the time, most floor beams were 3/10 X 8/4 dressed four sides after going through a planner and the 8" or 10" wood 7 5/8 or 9 5/8" in width. Rutstein convinced the lumber mills to instead cut the means 2 ¾’ or 11/4 inches thick saving the ¼. This led to a saving in increasing the yield of each cut on the log by a approximate eight percent.

It took Rutstein years to get the lumber industry to adjust a practice that had been in place for hundreds of years. Eventually Rutstien was able to convince mills in the West Coast to adopt the standard and it was called 'Jew Plank.' According to Jim Denison in his oral history of the lumber industry, Rutstein "wanted this low-grade lumber to use for shoring for five stories of basement for parking lots, and a lot of those skyscrapers. So [people in the industry] called this Jew plank that they cut, and it was a three-inch thickness, a rough cut, and put on ships. There were Calmar Lines that came into Newport, from the Suez Canal route, getting out to the West Coast. They brought steel out from the East Coast and delivered steel, and took lumber back to the East Coast again." This innovation would change the lumber industry and permanently adjust the structure of the nominal measurements.

Philanthropy

Rutstein's innovations made him known in the lumber industry but it was his philanthropist which would make him known as a leader. Rutstein was one of founders of Beth-El Hospital, Mesivta Rabbi Chaim Berlin, Brown Heights Yeshiva, United Lubavitcher Yeshiva, Dir.: Brooklyn Home of the Aged, Home for Incurables, Pride of Judea Orphans Home, Crown Heights Yeshiva, Jewish Theological Seminary, Brooklyn Jewish Center, Stone Ave. Talmud Torah. HE was a founder and member of Temple Petach Tikvah for more than 30 yrs. He was a charitable contributor to most of the Yeshivas in U.S., Palestine and other countries.

Beth-El Hospital

Rutstein was a Principal Founder of Beth El Hospital and its predecessor, East New York Hospital. On Sunday, July 19, 1925, the Brooklyn Daily Eagle reported that for "the first time in Brownsville community work, $60,000 has been raised by 20 men especially for Brownsville and East New York Hospital to be used for the Nurses Home and Training School." The article reports that the Chairman of the Building Committee, Jacob Rutstein, donated $5,000. On July 13, 1927, the Brooklyn Daily Eagle reported that opened a nurses training school. The states, "Jacob Rutstein, chairman of the building committee, announced a $90,000 deficit was borne by the directors." The article continues that a "gold key to the building was auctioned to Jacob Rutstein for $7,000.

On February 23, 1933, the Brooklyn Daily Eagle announced that Jacob Rutstein was named for a committee at Beth El hospital, formally known as Brownsville and East New York Hospital. On November 12, 1933, an article appears in which contains a picture of Jacob Rutstein. The caption provides, "Jacob Rutstein, prominent charitable worker and treasurer of the Beth-El Hospital is active in obtaining subscriptions reservations for the hospital's10th annual dinner to be held at the Waldorf Astoria held on Sunday evening. December 3. This annual dinner attracts an attendance of 1,200 and the proceeds go to the annual deficit." A similar article appeared on November 23, 1933, and on December 13, 1934. On December 15, 1934, another article appears describing the opening of the Beth-El Hospital bazar and states that Jacob Rutstein was chairman of the bazar committee and had help procure $50,000 worth of merchandise which will go towards the deficit of the hospital. A similar article regarding Beth El appears on November 1, 1937. Another article about an upcoming Beth El hospital dinner appears on May 5, 1940 representing every profession. The article cites Jacob Rutstein and states that Samuel Strausberg, acting president of the hospital, at a meeting of the dinner committee held last night, praised Mr. Rutstein for his untiring efforts in helping to make the dinner a huge success." Mr. Strausberg added that from "early morning until late at night, Mr. Rutstein and his committee are giving up their own businesses in an effort to obtain subscriptions for the dinner." Another article for the same Beth El appears with Jacob'spicture on May 21, 1940, May 7, 1941, April 21, 1942, May 30, 1943.

Yeshiva Chaim Berlin

Letter from Rabbi Nosson Telushkin about Jacob Rutstein

Rutstein was a principal founder of Yeshiva Chaim Berlin and was critical in establishing Chaim Berlin Yeshiva in the United States. An article in the Brooklyn Eagle, on March 16, 1942, describes one of the many donations he acquired for the institution, stating that "$2,000 was raised in outside gifts by Jacob Rutstein who recently returned from Florida." On December 11, 1944, another article appears in the Brooklyn Eagle which it states that, "Yesivah Rabbi Chaim Berlin, one of the largest Orthodox Jewish institutions of learning in the country, is dedicating its new seven-story building at Stone and Pitkin Ave. at ceremonies which will take place throughout the week. The opening ceremonies were attended by more than 3000 persons. Jacob Rutstein, chairman of the dedication committee, announced that $25,000 had been donated by those present towards the new $1,000,000 building."

On December 29, 1944, another article appeared stating the following about Rutstein:

"Our congratulations to Jacob Rutstein for his constant activity on organizing activities for the advancement of orthodox Jewish secular and religious education. Outstanding in his philanthropic activities is his recent purchase of the seven-story $1,000,000 building at 350 Stone Ave. for the Mesivtah and Yeshivah Rabbi Chaim Berlin in the hearts of Brownsville. Already the institution has been recognized by the State Board of Regents through the granting of a charter and 800 students are now enrolled. Of this number 150 are studying for the rabbinate. Also 200 of its students have come from all parts of this country and 62 are refugees driven from their homelands by Hitler. This has been a truly humanitarian endeavor on the part of Mr. Rutstein."

Lubavitch

In or around 1940, Jacob was instrumental in bringing Rabbi Yosef Yitzchak Schneersohn, the sixth Lubavitcher rebbe, to the United States. Schneersohn, who was fleeing Nazi persecution needed refuge in the United States. Jacob worked with other leaders of the Jewish community to help bring Rabbi Schneersohn to the United States. Once in the United States, Rutstein is reported to have provided the initial infrastructure to Rabbi Schneersohn to launch Lubavitch in America. In addition to being a founder of the United Lubavitch Yeshivas, Rutstien was critical in helping Lubavitch locate and purchase the building which would become its headquarters on 770 Eastern Parkway. A picture of Rutstein hung in the Lubavitcher headquarters until the first half of the 1950s. Jacob'sson, Nathan Rothstein, an attorney, represented Lubavitch and did the closing of legal documents on the building.

The Redstone Group

Rutstein married Bessie Paretzky in Brownsville, Brooklyn in 1908. They had five children and numerous grandchildren and great-grandchildren many of whom continued in the real estate industry. Over four generations, the family included restaurateurs, developers, real estate attorneys and financiers. The multi-generational level of experience of the Rutstein family in the real estate sector ultimately evolved into The Redstone Group, a closely held family company, which draws upon a century of experience in the real estate industry.

External links

• The Redstone Group https://www.goredstone.com
• http://www.jewishgen.org/belarus/newsletters/belarus/TolochinTrip/index.html