Free State of Galveston Informations

The Free State of Galveston (sometimes referred to as the Republic of Galveston Island) was a whimsical name given to the coastal city of Galveston in the U.S. state of Texas during the early-to-mid-20th century. Today, the term is sometimes used to describe the culture and history of that era.

During the Roaring Twenties, Galveston Island emerged as a popular resort town, attracting celebrities from around the country. Gambling, illegal liquor, and other vice-oriented businesses were a major part of tourism. The Free State moniker embodied a belief held by many locals that Galveston was beyond what they perceived were repressive mores and laws of Texas and the United States. Two major figures of the era were the organized-crime bosses Sam and Rosario Maceo, who ran the chief casinos and clubs on the island and were heavily involved in the government and the tourism industry. The success of vice on the island, despite being illegal, was enabled by lax attitudes in the society and the government, both on the island and in the county. In one of the more famous examples of this, a state committee, investigating gambling at the fabled Balinese Room, was told by the local sheriff that he had not raided the establishment because it was a "private club" and because he was not a "member".

Much of this period represented a high point in Galveston's economy. It is sometimes referred to as the open era or the wide-open era because the business owners and the community made little effort to hide the illegal vice activities. The tourist industry spawned by the illegal businesses helped to offset Galveston's decline as a commercial and shipping center following a devastating hurricane in 1900. However, crackdowns against gambling and prostitution in Texas during the mid-20th century made these businesses increasingly difficult to sustain. By the end of the 1950s, this era of Galveston's history had ended.

The island of Galveston, which lies on the Gulf of Mexico, held one of the first major settlements in the eastern part of what is now Texas. During the mid-to-late-19th century, it became the largest city in the state. Galveston was also an important national commercial center and one of the busiest seaports in the United States, as the Port of Galveston was able to capitalize on Texas' rapid rise in the cotton trade. Its downtown was known as the "Wall Street of the Southwest" and by 1900 the city had one of the highest per capita incomes in the U.S. Though nearby Houston was emerging as an important city in its own right, Galveston was the state's cultural and economic center at the time. Vices such as prostitution and gambling, which were common throughout Texas during the 19th century, continued to be tolerated to various degrees on the island in the early 20th century.

The 1900 Galveston hurricane was an unparalleled disaster. Estimates of the death toll range from 6,000 to 12,000 people, in addition to many more on the Gulf Coast and along the shores of the bay. Immediately after the hurricane, Galveston worked to revive itself as a port and an entertainment center, including the construction of tourist destinations such as the Hotel Galvez, which opened in 1911. In the same year, the Galveston–Houston Electric Railway opened and became recognized as the fastest interurban rail system in the country. Galveston's port was also rebuilt quickly, and by 1912 had become the second-leading exporter in the nation, behind New York. Nevertheless, after the 1900 storm and another in 1915, many avoided investing in the island.

Galveston had been a major port of entry for Texas and the West during the 19th century, and a new wave of immigration came through the port in the early 20th century. For a time it was known as "Little Ellis Island". In contrast to the heavily German immigration of the 19th century, the new arrivals in Galveston were Greeks, Italians, Russian Jews (part of the Galveston Movement), and others who came to settle in many parts of the country, including some who remained on the island itself. Of particular note are the Sicilian immigrants who formed a significant community in Galveston County, as well as the nearby city of Brazoria.

The opening of the Houston Ship Channel in 1915 further challenged the port city. Houston and Texas City, as well as other ports, rapidly overtook Galveston as leading ports and commercial centers; by 1930 map makers were showing Houston as the major city on the Texas coast, instead of Galveston. Cotton shipping, which Galveston had thoroughly dominated on a worldwide level, began migrating to other ports in Texas and on the West Coast.

As Galveston's traditional economy declined, Texas' oil boom began in 1901, with oil wells and refineries constructed throughout the state. Galveston's direct role in this boom was minimal as investors avoided building pipelines and refineries on the island itself (though for a time oil was shipped through the island). Nevertheless, wealth brought on by the boom transformed nearby Houston, Texas City, Goose Creek (modern Baytown), and other communities. Houston in particular became home to a large community of wealthy businessmen and investors. Galveston became even more tourism-focused as the city sought to attract these nearby nouveau riche. Still, in the first two decades after the 1900 storm, the city's economy struggled to recover.

During the early 20th century, reform movements in the U.S. (the so-called Progressive movement) made most forms of gambling illegal in most communities. Gambling continued illegally in many places, though, creating new opportunities for criminal enterprises. The 18th Amendment to the U.S. Constitution, ratified in 1919, outlawed the manufacture, transportation, importation, and sale of alcoholic beverages and initiated the Prohibition era. The new law was widely unpopular, and bootlegging became rampant. Galveston's already lax social attitudes allowed this, as well as brothels and other illegal businesses, to blossom in the city. These institutions were so accepted that at one point, the city required health inspections for prostitutes to ensure the safety of their clients.

At the beginning of Prohibition, two main gangs divided the city: the Beach Gang led by Ollie Quinn, and the Downtown Gang led by Johnny Jack Nounes. Though the gangs largely kept to themselves, shootouts and gang-related killings were not unheard of.Rum-running became big business; liquor was imported from overseas and distributed throughout the city, the state, and other parts of the country. A rum row (a line of booze-laden ships from Cuba, Jamaica, and the Bahamas) became a fixture approximately 35 miles (56 km) beyond the coastline where smaller boats fetched the goods and brought them to shore. Quinn was the leading figure in Galveston's vice market. Quinn's partner Dutch Voight is often referred to as the "father" of organized gambling on the island because he established organized poker games in 1910. Quinn's main casino, the Deluxe Club, was an island landmark.

It was at this time that the Maceo family became important to Galveston's history. The family had immigrated from Palermo, Sicily, to Louisiana in 1901. Two brothers, Rosario (Rose) and Salvatore (Sam) Maceo, trained as barbers and moved to Galveston shortly before World War I to start their business. As Prohibition took hold the brothers began to give their customers gifts of (low-quality) wine that they were able to smuggle. As their customers became more interested in the liquor, the Maceos gradually became more serious bootleggers. They allied themselves with the Beach Gang, opened a "cold drink place" (i.e., speakeasy), and invested in the gang's gambling operations.

Eventually the Maceos, with Quinn, opened the Hollywood Dinner Club, at the time the most elegant night club on the Gulf Coast. The club featured crystal chandeliers, a large dance floor, and air conditioning (a new technology at the time; the Hollywood was the first club in the nation to use it). Because of Sam's smooth personality he became the face of the nightclub. Guy Lombardo performed for the club's opening, and Sam attracted a steady stream of celebrity performers thereafter. The club hosted one of the nation's first remote radio broadcasts, and featured Ben Bernie's orchestra (one of the nation's most famous performing groups), which was introduced by a young Walter Cronkite. The club, the first venue in the nation to offer high-class gaming, dining, and entertainment, and air-conditioning under one roof, was unique at the time.

A crackdown by federal law enforcement led to the arrests of the leaders of the city's gangs, which allowed the Maceo brothers to gain control of the island's underworld. The Maceos gradually invested in numerous clubs and other entertainment ventures in the city involving gambling and bootlegging. Their other big venture, besides the Hollywood, was a club and casino called Maceo's Grotto (later renamed the Balinese Room) which opened in 1929. The Maceos soon controlled most of the gambling and liquor on the island. The Turf Grill/Turf Athletic Club in downtown became their headquarters. Their wealth and Sam's ability to deal with influential figures allowed them to exert increasing influence over other businesses and the government of the island. They established strong relationships with respectable business leaders such as the Moodys, the Sealys, and the Kempners. The Maceos' influence on the island lasted for nearly three decades. To compensate for the sometimes-ineffectual police force and judicial system on the island, Rose organized a group of vigilantes known as the Night Riders to keep the peace. Area residents considered the island and their homes entirely safe in spite of rampant criminal activity. The Maceos' bookkeeper was known to walk to the bank carrying millions in deposits without any protection. The Maceos protected the citizens of the island in many ways, such as limiting how much locals were allowed to gamble at the casinos, donating heavily to local charities, and investing in community development.

The Maceo empire soon extended beyond Galveston Island and gradually expanded throughout Galveston County with the family owning more than 60 businesses, as well as slot machines throughout the county. Investments in oil speculation helped to diversify the Maceos' portfolio and add to their wealth. Law enforcement sources accused them of running the narcotics trade as far north as Dallas and Sam was even charged, but authorities were never able to make the charges stick, and indeed some sources claim that they were genuinely false.

Like much of the country, and particularly Texas, Galveston boomed in the 1920s. But even the Great Depression did not stop Galveston's run of prosperity. Despite the financial ruin that faced much of the country during the Depression, not a single Galveston bank failed and unemployment was almost unheard of. Key business sectors in Galveston during the Free State era were casinos and prostitution, in addition to many legitimate businesses. During much of the period, the vice industries provided the majority of employment. Two families held particular prominence on the island during this era: the Moodys controlled the largest legitimate interests, and the Maceos controlled the largest criminal enterprises. Both families were wealthy with business empires that extended beyond the island.

As the island rebuilt from the 1900 storm, legitimate business interests attempted to expand the economy by rebuilding tourism and further diversifying from shipping. Important non-entertainment businesses included insurance, hotels, banks, shipping, and commercial fishing. The medical and nursing schools, as well as the hospitals of the University of Texas Medical Branch were a stable sector on the island throughout the 20th century. The Moody family built one of the largest hotel empires in the U.S., and their American National Insurance Company (ANICO) was so successful that it actually grew—tremendously—during the Depression.

In the entertainment sector various ploys were used to attract tourists. In 1920 an annual beauty contest, named the Pageant of Pulchritude (also known as the Miss Universe contest) in 1926, was started in Galveston by C.E. Barfield, manager of a local amusement park owned by the Maceos. The contest was part of Splash Day, the kick-off of the summer tourist season each year, and became the first international beauty contest, attracting participants from England, Russia, Turkey, and many other nations until its demise in 1932. This contest is said to have served as a model for the modern Miss America pageant and others. At its height the pageant tripled the island's population the weekend it ran. Even after the international contest's closing, Splash Day was revived in various forms and continued to attract tourists. Other annual events included an extravagant Mardi Gras celebration in spring. The grand Buccaneer Hotel was constructed in 1929 creating an additional hotel landmark to compete with the Galvez (in addition to many other smaller hotel venues).

Much of Galveston's success as a tourist destination was the result of E. Sid Holliday, who became the publicity and convention director of the Galveston Chamber of Commerce in 1925 and later became its head. The Chamber helped promote the legitimate face of Galveston's tourism and business community (though it cooperated heavily with the criminal enterprises). Legitimate amusements such as an amusement park that included a Ferris wheel and a roller coaster (the Mountain Speedway), in addition to the beaches and up-scale shopping districts (notably the Strand) drew visitors, including those less interested in the city's illegal attractions. One of the most spectacular efforts by the Chamber, though not one of the city's greatest successes, was the Pleasure Pier (originally known as the Brantly Harris Recreational Pier). This huge pier (later converted to the Flagship Hotel), built in the 1940s and used by the military until the end of the war, featured restaurants, rides, and an amphitheater.

A significant contributor to the economy up through the 1940s was the military.Fort Crockett, the Army Air Base at Scholes Field, the Navy Section Base on Pelican Island, Camp Wallace and the blimp base at Hitchcock all helped pump money into the local economy, as did military shipments at the port and shipbuilding. The soldiers and sailors were a steady stream of customers for area businesses.

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