Stein was born in
South Bend, Indiana, to
Lithuanian Jewish immigrants, one of six children (three boys and three girls) of Louis Stein, a dry goods store owner, and Rosa Cohen (née Kahanaski). In 1915, he graduated from the
University of Chicago. While in college, he supported himself by playing the violin and saxophone at weddings and bar mitzvahs; and later, realizing that he was not a very good musician, by organizing dance bands for the same events. Once, when he realized he could not make it to a gig, he hired a substitute whom he paid less than he would have personally made. This was the inspiration for focusing his energy on hiring musicians, instead of working as a musician himself, as a business model. In 1921, he graduated with a medical degree from
Rush Medical College. He then went to the
University of Vienna to study for a year and upon returning to Chicago, he was appointed chief resident at
Cook County Hospital. Stein continued to book bands on the side and eventually left his secure life as an
ophthalmologist for the entertainment industry. At the time, Chicago was a major centre for
jazz—which had displaced
ragtime as the popular music—and when combined with
Prohibition, created a lucrative environment for entertainment. Stein adjusted to the new landscape and shifted from booking bands for weddings to nightclubs. Stein became very successful. Several of his bands played for
speakeasies owned by
Al Capone with whom Stein was a friend. ==Career==