I don't know the answer to your first question (known historical issues). As to a 1" capacity chuck, the 1961 Jacobs catalog only shows the ball bearing 20N, and it takes a 5JT arbor and would probably cost more than the drill press. 1" shank drills are also going to be scarce and expensive. Do you know yet what the spindle nose is? The choices are probably either 3/8"-24, 1/2"-24 or 1/2"-20. The largest 1/2" threaded mount chucks that Jacobs made are 0-1/2" capacity. Which is most likely what's on the machine already. If the spindle is #2MT, which is less likely, then yes, drills were made up to 1" dia. with 2MT shanks. However, the drill press is too fast for mild steel much above 1/2" dia.
The machine that you are looking at is a 4-speed. If you need a drill press for general machine shop use, I would recommend that you look for a 12-speed with either 2MT or 3MT spindle (AKA quill).