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awk '
$2 > max { max = $2 }
NR == 1 { next; }
$1 == 1 { print 1, max; max = $2; }
' filename
my code return one row less than your output! can it help you find your way ?

replace
for i in /users/jack/system1-dr.txtwith
for i in `cat /users/jack/system1-dr.txt`the code between ` ` will be executed and become arguments for "for loop"