What is known today as the Sturgis Rally actually began in 1937 when a local motorcycle club, the Jackpine Gypsies, invited the Rapid City Pioneers Motorcycle Club to Sturgis for a field day. The Gypsies rode the Indian motorcycles that Clarence “Pappy” Hoel sold at his Sturgis shop and the Rapid City group, known as the RPMs, were almost all Harley-Davidson riders.
Sturgis businessmen took notice of the number of people the event brought to town and over the winter they met with Pappy and the Gypsies to secure an AMA sanction for a similar meet, with dirt track races to be held at the old half-mile horse track at the county fairgrounds.
The Jackpine Gypsies held the first sanctioned rally on this day in 1938. They dubbed it the “Black Hills Classic”. It consisted of a single race with only nine participants
In addition to the race, there were various motorcycle stunts and daily rides - Gypsy Tours - to keep people entertained and take in the beauty of the surrounding land such as the sacred Bear Butte.
It was Pappy Hoel’s ever-chipper, gracious and dedicated wife, Pearl, who probably deserves credit more than anyone else for the early success of this event. Without her reputation and support the Sturgis Rally would probably never have happened.
In the formative years of the event (1936-1941), Pearl’s reputation in Sturgis and Meade County helped sell Clarence’'s idea to influential leaders in the community. As a county official and an outstanding citizen of great stature in the community, Pearl lent credibility to the event. She was active in her church, served as an officer in her lodge, and was regularly involved in the bridge club and other community societies. The local powers that be, and especially their wives, were Pearl’s friends. If Pearl thought a motorcycle rally was a good thing, how could anyone disagree? And what a rally in has turned into.