To answer @Rush's question and also to add something regarding @Giacomo's statement....

I think back in the days or during the 1920s there was some type of crime family present in Indiana and was possibly connected to Chicagos second crime family from the Chi Heights area. But when Capone's ally Dominick Roberto eliminated most of the old Chi Heights bosses by the mid 20s, they also continued killing everyone from the Indiana area who was against the "new order". During the 1930s many Indiana members and associates joined Roberto and the Capone group but still, there were other members from the old Mafia who didnt give up all of their ops and made some type of alliance. So by the late 30s most of those same guys were also eliminated by the Outfit and so the Indiana area was controlled by remnants who remained loyal to the new Outfit and by 1950 the Outfits main rep in that same state was in fact a non-Italian mobster. In 1952 old time member from the North Side Mafia, Tony Pinelli who escaped to LA during the second conflict from the 1940s, was brought back to Chicago by Accardo, Giancana and Ferraro, and so they made him a capo of the "new" Indiana crew, but still under the jurisdiction of the Outfits Chi Heights crew.

So we can see that the Outfit wanted to use an old time member of Chicagos former Mafia families, who knew the Indiana area and the remaining associates from that same territory, and also to form his own crew under the Outfits jurisdiction.