Fans of the Indianapolis 500 owe a debt of gratitude to Wilbur Shaw. He was responsible Tony Hulman’s purchase of the Indianapolis Motor Speedway.
Born in Shelbyville, Indiana, Shaw was one of the outstanding open-wheel drivers during the 1920s and 1930s. He finished fourth in his first appearance in the Indianapolis 500 in 1927. He had bad luck during the 1928, 1930, and 1932 races where a variety of mechanical failures ended his drive. In 1933, he finished second in the race. After a mechanical failure during the 1934 race, he started on a string of impressive runs finishing second in 1935 and 1938 and winning the race in 1937, 1939 and 1940. He was the first driver to win back-to-back Indianapolis 500s. In the 1941 race, he crashed on lap 152 ending his quest to become the first four-time winner.
During the late 1930s, Shaw traveled around the United States promoting Firestone Rubber & Tire products. On a trip to Akron, Ohio, Shaw met with Firestone president, Leonard Firestone who wanted him to head the company’s aircraft subsidiary. Shaw agreed subject to being able to get time off in the Month of May so that he could participate in the Indianapolis 500.
Firestone developed a new synthetic rubber compound during World War II which they believed could be applied to automobile tires. Anxious to capitalize on the new technology with the end of hostilities, Firestone executives wanted Shaw to test them. Firestone got the approval of the United States government for the test at the Indianapolis Motor Speedway. Shaw described the test in his book, Gentlemen, Start Your Engines on a bitterly cold November day in 1944 as “the longest, coldest high-speed run I ever made in my life. The temperature was about 5 degrees above zero and the absence of competition made it seem like 5,000 miles rather than 500.”
After the run, Shaw visited with Eddie Rickenbacker who had purchased the Speedway in 1927 from the original owners. Shaw learned that an Indianapolis realtor wanted to buy the track to become a residential subdivision. Rickenbacker was interested in selling as he was the president of Eastern Airlines and was too busy to devote the time needed to properly restore the track which had been closed during World War II. Its condition was deplorable with weeds and small trees on the track and the stands falling down. Shaw later said that he “just about blew up” at the news of the potential sale of the track.
Shaw came away from the meeting with a strong desire to save the track. He got the financial information for the track and started sending prospectuses to multiple individuals and businesses hoping to form a consortium to buy the Speedway. There was some interest, primarily from automobile manufacturers who wanted to use the facility as a test track and there would be no more racing at the facility.
Undeterred, Shaw reached out to Homer Cochran, an Indianapolis investment banker. During World War II, Cochran had interfaced with Tony Hulman on several investment opportunities. Hulman was the head of Hulman & Company, a wholesale grocer in Terre Haute, Indiana. Hulman was a sportsman and a fan of automobile racing and the Indianapolis 500. Cochran knew that Hulman had the financial strength to purchase and restore the Speedway while Shaw, with his knowledge of racing and whose name was synonymous with the sport, had the necessary industry knowledge and contacts.
Cochran pitched the idea to the Hulman organization during the summer of 1945. Without the prior contact with the Hulman organization, it is unlikely this transaction would have occurred. Joe Cloutier, Hulman’s right hand man, later recalled, “When he [Cochran] brought the speedway to us, I said, ‘You’ve brought us a lot of things over here but this is the most ridiculous yet. We’re just conservative wholesale grocers over here. This is a very promotional type of thing and we’re not good promoters.”
After several meetings with Cochran, a review of the financial information, and a tour of the track, Hulman decided to purchase the track. The Indianapolis Motor Speedway was purchased on November 15, 1945, for $750,000—the price Rickenbacker’s consortium had paid in 1927. After the purchase, Rickenbacker paid homage to the founders of the Speedway and to Hulman. “I have always felt that the people of Indiana should have more than an observation interest in this great state institution. Mr. Hulman and Shaw will bring the track ‘home-state ownership’ which it deserves along with Shaw’s knowledge of racing which he learned the hard way—on the track itself. I have no doubt the new ownership will continue its successful operation.”
Hulman said of the purchase, “The Speedway has always been a part of Indiana, just as the Derby is part of Kentucky. The 500-mile race should be continued.” Hulman’s family owned the track for 75 years until its sale to Roger Penske in 2020.