Free State of Galveston
Encyclopedia
The Free State of Galveston (sometimes referred to as the Republic of Galveston Island) was a whimsical name given to the island 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. This free-wheeling period reached its peak during the Prohibition
and Depression
eras but continued well past the end of World War II.
During the Roaring Twenties
, Galveston Island emerged as a popular resort town, attracting celebrities from around the country.Kearney (2005), p. 230. 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 famed 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 1950s, this era of Galveston's history had ended.
, 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. 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.McCombs (1986), p. 151.
The 1900 Galveston hurricane was an unparalleled disaster. According to some estimates 6,000 people died on the island, in addition to thousands 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. 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 a leading port and commercial center; 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 pipeline
s 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.
, ratified in 1919, outlawed the manufacture, transportation, importation, and sale of alcoholic beverage
s 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 (56.3 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 massive dance floor, and even 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 even hosted one of the nation's first remote radio broadcasts
, and featured Ben Bernie
's orchestra, which was introduced by a young journalist named Walter Cronkite
. The club, the first venue in the nation to offer high-class gaming, dining, and entertainment 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. 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 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 and gradually expanded throughout Galveston 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
, though some sources claim that they were not involved in narcotics at all.
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.
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
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.
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 a giant Ferris wheel and a roller coaster, 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 (now 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.
Casinos offering illegal gambling and drinking were the largest tourist draws on the island. Though the Maceos operated the island's biggest casinos, they generally were very tolerant of competing clubs and casinos, provided their owners understood and respected the Maceos' authority. By the 1930s Seawall Boulevard
was filled with lavish casinos; other areas of town also had pockets of gambling. The red-light district
, centered on Postoffice Street and kept entirely separate from the nightclubs and other entertainment venues, was so successful that the island for a time had the highest concentration of prostitutes in the world. The financial success of these vice industries attracted mobsters such as New York's
Albert Anastasia
and Chicago
's Al Capone
, who tried to enter Galveston's market without success. Capone's enforcer Frank Nitti
, in fact, had been a former partner of the Galveston Downtown Gang leader Jack Nounes before the Maceo era.
Galveston became a major port of entry for illegal liquor from Mexico and Canada, shipped through the Caribbean
and distributed from the island throughout Texas and to other destinations. Galveston became the primary supplier for Houston, Dallas, Denver, St. Louis
and Omaha
. This traffic helped to offset the gradual loss of shipping traffic in the cotton and sulfur trade.
The major legitimate businesses on the island, such as banking and hotels, were able to thrive in large part because of the illegal activities. Though many of these business leaders steered clear of direct involvement in the business affairs of the Maceos and the gangs, their relationships were hardly antagonistic. Some, such as financier, hotelier, and insurance executive William Lewis Moody, Jr.
, actually welcomed illegal gambling because it brought tourists who filled up his hotels. He was even known to make loans to the Maceos' syndicate.
The Free State economy was not confined simply to the island but extended through much of Galveston County
. Throughout the county there were substantial casino operations developed by the Fertitta, Salvato and Maceo families, including the casino districts in Kemah
(featuring the Chili Bowl and White House casinos among others) and Dickinson
(featuring the Silver Moon and the Dickinson Social Club). Houstonians often humorously referred to the Galveston County line as the "Maceo-Dickinson line" (a pun referring to the Mason-Dixon line
).
The vice activities on the island and in the county were not unique in Texas. San Antonio had perhaps the second most infamous red-light district in the early 20th century and most major cities in the state had significant vice activities at least until mid-century. During the Open Era Galveston's vice industries dominated, while most other areas of the state were at times forced to crack down on vice due to public pressure.
Though other parts of Texas and the United States sometimes tolerated prostitution, gambling and violations of liquor laws (e.g. Dallas is said to have had 27 casinos and numerous brothels during World War II), these communities usually at least made a pretense of trying to enforce vice laws. In Galveston, vice was conducted openly; according to a 1993 Texas Monthly article by author Gary Cartwright, "Galveston's red-light district may have been the only one in the country that thrived with the blessings of both city hall and the Catholic church."
High society in the city regularly attracted some of the biggest names in the entertainment business, from Frank Sinatra
to Phil Harris
. The clubs were regularly visited by famous Houstonians such as Howard Hughes
, Diamond Jim West
, and Glenn McCarthy
.
Galveston's attitudes toward race were at times unique in the region. The strict segregationalist
attitudes prevalent in many parts of the U.S. were not always as stark in Galveston's society as in some other parts of Texas. One of the most striking examples of this was the gradual establishment of biracial labor unions of waterfront workers beginning in the 19th century, although eventually this alliance fell victim to segregationist influence. Racist ideology was always an ever-present factor in the city, however, as evinced by the name of the group which ran the Mardi Gras, the Kotton Karnival Kids (KKK, the same initials as the Ku Klux Klan
).
), which featured vaudeville
acts in addition to motion pictures. Less formally, entertainment could be found at the Balinese Room, Hollywood Dinner Club, and other clubs featuring musical performances by major entertainers. Additionally for many years the city held free concerts on the beach by major orchestras and other performers. The entertainment venues regularly attracted some of the biggest names in the entertainment business, including Frank Sinatra, Sammy Davis Jr., Guy Lombardo
, Jack Benny
, Gene Autry
, Phil Silvers
, Jane Russell
, George Burns
, Duke Ellington
, and Bob Hope
.
following the 1900 hurricane, Galveston adopted the council-manager system
in the 1920s. At the beginning of Prohibition the city council originally opposed gambling and vice; though the council members were tolerant of small-scale activities which had always been a part of the city, they were more concerned about organized crime. As the Maceos reorganized vice in the city and made these businesses more respectable, the council became far more accepting of the criminal enterprises, particularly as they became linchpins of the local economy.
Law enforcement at the county level, and to some degree at the state level, became notoriously tolerant of the illegal activities in Galveston, in no small part because of the prosperity they generated, and the bribery and influence peddled by the Maceos. The city police very early on became entirely complicit.
Galveston County Sheriff Frank Biaggne served from 1933 to 1957 and was known for largely disregarding the mainstream illegal activities on the island. When a state committee investigating illegal activities on the island asked the sherriff about his reluctance to raid the Balinese Room, he replied only that it was a "private club" and he was not a "member". The county attorney
and the local police commissioner
were similarly complicit (Commissioner Johnston once bragged about being on the payroll of 46 brothels). According to a former Texas Ranger
, a local justice of the peace would readily issue search warrants for local clubs to the Rangers, but would immediately telephone the owners to warn them.
Law enforcement's corrupt attitude generally was not at the expense of the people. Apart from the economic benefits provided by the Maceos, these bosses provided a high degree of protection to the island's citizens. When serious crimes were committed the local police would sometimes contact the Maceos to have the matter dealt with. However, the island was not completely peaceful; threats at the point of a gun were a common means for the Maceo gang to ensure control. Though the average citizen was relatively safe, gangland slayings of potential rivals did take place on occasion.
The heyday of the Free State was over by the 1940s. Because of conflicts with the United States Treasury, the Hollywood Dinner Club was shut down in the late 1930s. The local clubs found it increasingly difficult to attract major entertainment figures. Gambling had been legalized in Nevada in 1931 and this distinct advantage over Galveston, and other illegal gambling centers, gradually lured mob
figures such as New York City's Bugsy Siegel
to Las Vegas
. The competition created by the up-and-coming entertainment center in the desert substantially challenged the island on the Gulf. Still, even during its later years, the Balinese Room was able to attract the likes of Tony Bennett
and Peggy Lee
, among others. And as late as 1950 the annual income of the Maceo empire was reportedly $3.84 million ($ in today's terms).
By the late 1940s corruption in Texas at the state and county level was in decline, while pressure against vice across the state and across the nation was on the rise. Even San Antonio
's famed Sporting District
, once one of the nation's largest red-light districts, was shut down in 1941. As state investigations of the Maceo's activities became more serious, Sam and Rose began plans to move their empire to Nevada. The Maceos became major investors in the Desert Inn
, which was the largest and most elaborate casino resort on the Las Vegas Strip
when it opened in 1950. Moe Dalitz
(who opened the Desert Inn) and Sam Maceo had long been allies and business partners. The Las Vegas project's financing was largely facilitated by the Maceos and Moodys through ANICO (which loaned millions to known mob figures). Sam and Rose Maceo transferred controlling interest of most of their Galveston empire to a new group dominated by the Fertitta family, with investments coming from business interests around the island. The Fertitta group never wielded the influence that the Maceos had. Sam Maceo died in 1951 and Rose in 1954.
, headed by Carlos Marcello
, ran guns to Cuba through the island.
By the 1950s gambling and prostitution were being actively repressed in most parts of Texas. In 1953, the police commissioner, Walter L. Johnston, under pressure from local citizens groups concerned about moral decline and high rates of venereal disease, shut down the red-light district. However, the mayoral victory of George Roy Clough, a supporter of regulated vice, led to the district's being re-established in 1955. That year Galveston was labeled by national antiprostitution groups as the "worst spot in the nation as far as prostitution is concerned".
Paul Hopkins won the 1956 election for sheriff and set about shutting down the island's illegal activities once and for all. One of the first successful busts of the gambling industry was an undercover operation by Texas Ranger Clint Peoples at the Balinese Room. In 1957 State Attorney General
Will Wilson
and Department of Public Safety
head Homer Garrison (with help from former FBI agent Jim Simpson) began a massive campaign of raids that wrecked the gambling and prostitution industry on the island, along with liquor imports. Forty-seven clubs, brothels, and other vice establishments were reportedly closed, and 2,000 slot machines were destroyed. Though officials said they destroyed all of the city's gaming equipment, some locals including R.S. Maceo, nephew of Sam and Rose, claimed that most of the equipment was shipped to Las Vegas before authorities ever discovered it.
bridge (1956) for access to a new industrial park, which never materialized. The city's television station, KGUL, moved to Houston in 1959; the telephone company headquarters and many other businesses relocated off the island as well. To make matters worse, some of the island's attractions were destroyed by Hurricane Carla
in 1961 and never rebuilt.
The economy continued in muted form. The Splash Day celebrations restarted, drawing tourists to the coast. Many hotels, banks, and some insurance companies remained as did the medical and nursing schools, as well as the hospitals. Efforts at historical preservation (notably including those of George P. Mitchell
) gradually helped to re-establish the island's tourism industry, though in a very different form from the past. Nonbinding referenda were put forward in the 1980s regarding legalization of casinos in the city but were defeated by the voters each time, demonstrating the changes in the city since the bygone era (though an informal poll in 2008 indicated this sentiment may be changing).
Galveston, The Musical! music and lyrics by Mark York, book by Andree Newport, Robert Wilkins and Mark York, opened in 2003 at Galveston's Strand Theatre
and in 2011 at The Hobby Center in Houston; the musical theater production centers on the arrival of the Maceo Brothers, who created their own empire that sustained Galveston during this period of the island's history.
Galveston, Texas
Galveston is a coastal city located on Galveston Island in the U.S. state of Texas. , the city had a total population of 47,743 within an area of...
in the U.S.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
state of Texas
Texas
Texas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...
during the early-to-mid-20th century. Today, the term is sometimes used to describe the culture and history of that era. This free-wheeling period reached its peak during the Prohibition
Prohibition in the United States
Prohibition in the United States was a national ban on the sale, manufacture, and transportation of alcohol, in place from 1920 to 1933. The ban was mandated by the Eighteenth Amendment to the Constitution, and the Volstead Act set down the rules for enforcing the ban, as well as defining which...
and Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
eras but continued well past the end of World War II.
During the Roaring Twenties
Roaring Twenties
The Roaring Twenties is a phrase used to describe the 1920s, principally in North America, but also in London, Berlin and Paris for a period of sustained economic prosperity. The phrase was meant to emphasize the period's social, artistic, and cultural dynamism...
, Galveston Island emerged as a popular resort town, attracting celebrities from around the country.Kearney (2005), p. 230. Gambling, illegal liquor
Rum-running
Rum-running, also known as bootlegging, is the illegal business of transporting alcoholic beverages where such transportation is forbidden by law...
, 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
Organized crime
Organized crime or criminal organizations are transnational, national, or local groupings of highly centralized enterprises run by criminals for the purpose of engaging in illegal activity, most commonly for monetary profit. Some criminal organizations, such as terrorist organizations, are...
bosses Sam
Sam Maceo
Salvatore Maceo, also known as Sam Maceo, was a businessman, community leader, and organized crime boss in Galveston, Texas in the United States. Because of his efforts, Galveston Island became a nationally known resort town during the early and mid 20th century, a period known as Galveston's Open...
and Rosario Maceo
Rosario Maceo
Rosario Maceo , also known as Papa Rose or Rose Maceo, was a Sicilian immigrant and organized crime boss in Galveston, Texas in the United States. Because of his efforts and those of his brother Sam, Galveston Island became a nationally known resort town during the early and mid 20th century,...
, 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 famed Balinese Room
Balinese Room
The Balinese Room was a well-known nightclub in Galveston, Texas, United States built on a pier stretching 600 feet from the Galveston Seawall over the waters of the Gulf of Mexico...
, 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 1950s, this era of Galveston's history had ended.
Background
The island of Galveston, which lies on the Gulf of MexicoGulf of Mexico
The Gulf of Mexico is a partially landlocked ocean basin largely surrounded by the North American continent and the island of Cuba. It is bounded on the northeast, north and northwest by the Gulf Coast of the United States, on the southwest and south by Mexico, and on the southeast by Cuba. In...
, 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
Port of Galveston
The Port of Galveston is the port of the city of Galveston, Texas. It was established by a proclamation issued by the Congress of Mexico on October 17, 1825, while the land known today as Texas was still part of Mexico...
was able to capitalize on Texas' rapid rise in the cotton trade. Though nearby Houston
Houston, Texas
Houston is the fourth-largest city in the United States, and the largest city in the state of Texas. According to the 2010 U.S. Census, the city had a population of 2.1 million people within an area of . Houston is the seat of Harris County and the economic center of , which is the ...
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.McCombs (1986), p. 151.
The 1900 Galveston hurricane was an unparalleled disaster. According to some estimates 6,000 people died on the island, in addition to thousands more on the Gulf Coast
Gulf Coast of the United States
The Gulf Coast of the United States, sometimes referred to as the Gulf South, South Coast, or 3rd Coast, comprises the coasts of American states that are on the Gulf of Mexico, which includes Texas, Louisiana, Mississippi, Alabama, and Florida and are known as the Gulf States...
and along the shores of the bay
Galveston Bay Area
The Galveston Bay Area is a region that surrounds the Galveston Bay estuary of Southeast Texas in the United States within the metropolitan area. Residents of Houston and surrounding areas typically call it simply the "Bay Area"...
. 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
Interurban
An interurban, also called a radial railway in parts of Canada, is a type of electric passenger railroad; in short a hybrid between tram and train. Interurbans enjoyed widespread popularity in the first three decades of the twentieth century in North America. Until the early 1920s, most roads were...
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
1915 Galveston Hurricane
The 1915 Galveston Hurricane was a deadly hurricane that struck Leeward Islands, Hispanola, Cuba and Texas, in mid August of the 1915 Atlantic hurricane season...
, many avoided investing in the island.
Galveston had been a major port of entry for Texas and the West
Western United States
.The Western United States, commonly referred to as the American West or simply "the West," traditionally refers to the region comprising the westernmost states of the United States. Because the U.S. expanded westward after its founding, the meaning of the West has evolved over time...
during the 19th century, and a new wave of immigration came through the port in the early 20th century. In contrast to the heavily German
German American
German Americans are citizens of the United States of German ancestry and comprise about 51 million people, or 17% of the U.S. population, the country's largest self-reported ancestral group...
immigration of the 19th century, the new arrivals in Galveston were Greeks
Greek American
Greek Americans are Americans of Greek descent also described as Hellenic descent. According to the 2007 U.S. Census Bureau estimation, there were 1,380,088 people of Greek ancestry in the United States, while the State Department mentions that around 3,000,000 Americans claim to be of Greek descent...
, Italians
Italian American
An Italian American , is an American of Italian ancestry. The designation may also refer to someone possessing Italian and American dual citizenship...
, Russian Jews (part of the Galveston Movement
Galveston Movement
The Galveston Movement, also known as the Galveston Plan, was one immigration assistance program operated by several Jewish organizations between 1907 and 1914. The program worked to divert Jewish immigrants, fleeing Russia and eastern Europe, away from East Coast cities, particularly New York,...
), 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
Brazoria, Texas
Brazoria is a city of Brazoria County in the U.S. state of Texas within the metropolitan area. As of the 2000 U.S. Census, the city population was 2,787.Brazoria was originally founded as a port for Stephen F...
.
The opening of the Houston Ship Channel
Houston Ship Channel
The Houston Ship Channel, located in Houston, Texas, is part of the Port of Houston—one of the United States's busiest seaports. The channel is the conduit for ocean-going vessels between the Houston-area shipyards and the Gulf of Mexico.-Overview:...
in 1915 further challenged the port city. Houston and Texas City, as well as other ports, rapidly overtook Galveston as a leading port and commercial center; 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
West Coast of the United States
West Coast or Pacific Coast are terms for the westernmost coastal states of the United States. The term most often refers to the states of California, Oregon, and Washington. Although not part of the contiguous United States, Alaska and Hawaii do border the Pacific Ocean but can't be included in...
.
As Galveston's traditional economy declined, Texas' oil boom
Texas Oil Boom
The Texas Oil Boom, sometimes called the Gusher Age, was a period of dramatic change and economic growth in U.S. state of Texas during the early 20th century that began with the discovery of a large petroleum reserve near Beaumont, Texas...
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 pipeline
Pipeline transport
Pipeline transport is the transportation of goods through a pipe. Most commonly, liquids and gases are sent, but pneumatic tubes that transport solid capsules using compressed air are also used....
s 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
Baytown, Texas
Baytown is a city within Harris County and partially in Chambers County in the Gulf Coast region of the U.S. state of Texas. Located within the Houston–Sugar Land–Baytown metropolitan area, it lies along both State Highway 146 and Interstate 10. As of 2010, Baytown had an population of 71,802...
), 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
Nouveau riche
The nouveau riche , or new money, comprise those who have acquired considerable wealth within their own generation...
. Still, in the first two decades after the 1900 storm, the city's economy struggled to recover.
Prohibition and the Maceos
During the early 20th century, reform movements in the United States 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. ConstitutionEighteenth Amendment to the United States Constitution
The Eighteenth Amendment of the United States Constitution established Prohibition in the United States. The separate Volstead Act set down methods of enforcing the Eighteenth Amendment, and defined which "intoxicating liquors" were prohibited, and which were excluded from prohibition...
, ratified in 1919, outlawed the manufacture, transportation, importation, and sale of alcoholic beverage
Alcoholic beverage
An alcoholic beverage is a drink containing ethanol, commonly known as alcohol. Alcoholic beverages are divided into three general classes: beers, wines, and spirits. They are legally consumed in most countries, and over 100 countries have laws regulating their production, sale, and consumption...
s and initiated the Prohibition era. The new law was widely unpopular, and bootlegging
Rum-running
Rum-running, also known as bootlegging, is the illegal business of transporting alcoholic beverages where such transportation is forbidden by law...
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
Ollie Quinn
Ollie J. Quinn was a gang leader in Galveston, Texas in the United States during the early 1900s. He, with Dutch Voight, led the Beach Gang, one of the two gangs which controlled most of the Galveston underworld until the mid 1920s...
, 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
Rum-running
Rum-running, also known as bootlegging, is the illegal business of transporting alcoholic beverages where such transportation is forbidden by law...
became big business; liquor was imported from overseas and distributed throughout the city, the state, and other parts of the country. A rum row
Rum row
A rum row was a Prohibition-era term referring to a line of ships loaded with liquor anchored beyond the maritime limit of the United States. These lines became established near major U.S...
(a line of booze-laden ships from Cuba, Jamaica, and the Bahamas) became a fixture approximately 35 miles (56.3 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
Dutch Voight
Dutch Voight was a German American gang leader in Galveston, Texas in the United States during the early 1900s. Voight was called Dutch for Deutsch meaning German. He, with Ollie Quinn, led the Beach Gang, one of the two gangs which controlled most of the Galveston underworld until the mid 1920s...
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
Louisiana
Louisiana is a state located in the southern region of the United States of America. Its capital is Baton Rouge and largest city is New Orleans. Louisiana is the only state in the U.S. with political subdivisions termed parishes, which are local governments equivalent to counties...
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
Speakeasy
A speakeasy, also called a blind pig or blind tiger, is an establishment that illegally sells alcoholic beverages. Such establishments came into prominence in the United States during the period known as Prohibition...
), 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 massive dance floor, and even 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
Guy Lombardo
Gaetano Alberto "Guy" Lombardo was a Canadian-American bandleader and violinist.Forming "The Royal Canadians" in 1924 with his brothers Carmen, Lebert, and Victor and other musicians from his hometown, Lombardo led the group to international success, billing themselves as creating "The Sweetest...
performed for the club's opening, and Sam attracted a steady stream of celebrity performers thereafter. The club even hosted one of the nation's first remote radio broadcasts
Remote broadcast
In broadcast engineering, a remote broadcast is broadcasting done from a location away from a formal television studio and is considered an electronic field production . A remote pickup unit is usually used to transmit the audio and/or video back to the television station, where it joins the...
, and featured Ben Bernie
Ben Bernie
Ben Bernie , born Bernard Anzelevitz, was an American jazz violinist and radio personality, often introduced as The Old Maestro. He was noted for his showmanship and memorable bits of snappy dialogue....
's orchestra, which was introduced by a young journalist named Walter Cronkite
Walter Cronkite
Walter Leland Cronkite, Jr. was an American broadcast journalist, best known as anchorman for the CBS Evening News for 19 years . During the heyday of CBS News in the 1960s and 1970s, he was often cited as "the most trusted man in America" after being so named in an opinion poll...
. The club, the first venue in the nation to offer high-class gaming, dining, and entertainment 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. 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
William Lewis Moody, Jr.
William Lewis Moody Jr. was an American financier and entrepreneur from Galveston, Texas, who founded a private bank, an insurance company, and one of the largest charitable foundations in the United States. Moody was active in the day-to-day operations of his companies until two days before his...
, 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 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 and gradually expanded throughout Galveston County
Galveston County, Texas
Galveston County is a county located in the U.S. state of Texas within the Houston–Sugar Land–Baytown metropolitan area. As of the 2010 U.S. Census, the population was 291,309. Its county seat is Galveston. League City is the largest city in Galveston County in terms of population; between...
. 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
Dallas, Texas
Dallas is the third-largest city in Texas and the ninth-largest in the United States. The Dallas-Fort Worth Metroplex is the largest metropolitan area in the South and fourth-largest metropolitan area in the United States...
, though some sources claim that they were not involved in narcotics at all.
Economy
Like much of the country, and particularly Texas, Galveston boomed in the 1920s. Even the Great DepressionGreat Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
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.
Legitimate businesses
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 BranchUniversity of Texas Medical Branch
The University of Texas Medical Branch is a component of the University of Texas System located in Galveston, Texas, United States, about 50 miles southeast of Downtown Houston...
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
American National Insurance Company
American National Insurance Company is a major American insurance corporation based in Galveston, Texas. The company and its subsidiaries operate in all 50 U.S. states, the District of Columbia, Puerto Rico, and American Samoa.-Company description:...
(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
International Pageant of Pulchritude
The International Pageant of Pulchritude, also known as the "International Beauty Contest" or the "Miss Universe Contest," was a beauty contest that began in 1926 featuring contestants from multiple nations. The last pageant event in the U.S. was held in 1931 although additional "Miss Universe"...
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
Miss America
The Miss America pageant is a long-standing competition which awards scholarships to young women from the 50 states plus the District of Columbia, Puerto Rico and the US Virgin Islands...
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
Mardi Gras in the United States
While Mardi Gras in the United States is not observed nationally across the country, a number of cities and regions in the U.S. have notable Carnival celebrations. Because of the French and Spanish colonial history of the settlements, the earliest Carnival celebrations occurred in Mobile, Biloxi,...
celebration in spring.
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 a giant Ferris wheel and a roller coaster, 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 (now converted to the Flagship Hotel
USS Flagship Hotel
The USS Flagship Hotel was a hotel, located in Galveston in the U.S. state of Texas. It was built on the historic Pleasure Pier structure entirely over the Gulf of Mexico, albeit very close to shore. It was a popular destination in Galveston that withstood many storms.-History:The hotel was built...
), 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
United States armed forces
The United States Armed Forces are the military forces of the United States. They consist of the Army, Navy, Marine Corps, Air Force, and Coast Guard.The United States has a strong tradition of civilian control of the military...
. Fort Crockett
Fort Crockett
Fort Crockett is a government reservation on Galveston Island overlookingthe Gulf of Mexico originally built as a defense installation to protect the city and harbor of Galveston and to secure the entrance to Galveston Bay,...
, the Army Air Base at Scholes Field
Scholes International Airport at Galveston
Scholes International Airport at Galveston is an airport located in Galveston, Texas, United States. The airport, three miles southwest of downtown Galveston, has two runways.- Overview :...
, the Navy Section Base on Pelican Island
Pelican Island (Texas)
Pelican Island is an island located in Galveston County, Texas. It is part of the city of Galveston and is linked to Galveston Island by a causeway. The island is home to the Texas A&M University at Galveston as well as USS Stewart , USS Cavalla and Seawolf Park...
, Camp Wallace and the blimp base
Hitchcock Naval Air Station
Hitchcock Naval Air Station was a Naval Air Station built by the United States Navy during World War II to accommodate lighter-than-air aircraft, more commonly known as blimps. It was located in the small town of Hitchcock, Texas, about fifteen miles northwest of Galveston. Construction began in...
at Hitchcock
Hitchcock, Texas
Hitchcock is a city in Galveston County, Texas, United States. The population was 6,386 at the 2000 census.-History:Hitchcock was created as a station of the railroad between Galveston and Houston in 1873 and around the turn of the 20th century became a vegetable shipping center...
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.
Vice businesses
Seawall Boulevard
Seawall Boulevard is a major road in Galveston, Texas in the United States. The boulevard is conterminous with Farm to Market Road 3005 south of 61st Street. It runs along the Gulf coast waterfront of the island near the main parts of the city...
was filled with lavish casinos; other areas of town also had pockets of gambling. The red-light district
Red-light district
A red-light district is a part of an urban area where there is a concentration of prostitution and sex-oriented businesses, such as sex shops, strip clubs, adult theaters, etc...
, centered on Postoffice Street and kept entirely separate from the nightclubs and other entertainment venues, was so successful that the island for a time had the highest concentration of prostitutes in the world. The financial success of these vice industries attracted mobsters such as New York's
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
Albert Anastasia
Albert Anastasia
Albert Anastasia was boss of what is now called the Gambino crime family, one of New York City's Five Families, from 1951-1957. He also ran a gang of contract killers called Murder Inc. which enforced the decisions of the Commission, the ruling council of the American Mafia...
and Chicago
Chicago
Chicago is the largest city in the US state of Illinois. With nearly 2.7 million residents, it is the most populous city in the Midwestern United States and the third most populous in the US, after New York City and Los Angeles...
's Al Capone
Al Capone
Alphonse Gabriel "Al" Capone was an American gangster who led a Prohibition-era crime syndicate. The Chicago Outfit, which subsequently became known as the "Capones", was dedicated to smuggling and bootlegging liquor, and other illegal activities such as prostitution, in Chicago from the early...
, who tried to enter Galveston's market without success. Capone's enforcer Frank Nitti
Frank Nitti
Francesco Raffaele Nitto , also known as Frank "The Enforcer" Nitti, was an Italian American gangster. One of Al Capone's top henchmen, Nitti was in charge of all strong-arm and 'muscle' operations...
, in fact, had been a former partner of the Galveston Downtown Gang leader Jack Nounes before the Maceo era.
Galveston became a major port of entry for illegal liquor from Mexico and Canada, shipped through the Caribbean
Caribbean Sea
The Caribbean Sea is a sea of the Atlantic Ocean located in the tropics of the Western hemisphere. It is bounded by Mexico and Central America to the west and southwest, to the north by the Greater Antilles, and to the east by the Lesser Antilles....
and distributed from the island throughout Texas and to other destinations. Galveston became the primary supplier for Houston, Dallas, Denver, St. Louis
St. Louis, Missouri
St. Louis is an independent city on the eastern border of Missouri, United States. With a population of 319,294, it was the 58th-largest U.S. city at the 2010 U.S. Census. The Greater St...
and Omaha
Omaha, Nebraska
Omaha is the largest city in the state of Nebraska, United States, and is the county seat of Douglas County. It is located in the Midwestern United States on the Missouri River, about 20 miles north of the mouth of the Platte River...
. This traffic helped to offset the gradual loss of shipping traffic in the cotton and sulfur trade.
The major legitimate businesses on the island, such as banking and hotels, were able to thrive in large part because of the illegal activities. Though many of these business leaders steered clear of direct involvement in the business affairs of the Maceos and the gangs, their relationships were hardly antagonistic. Some, such as financier, hotelier, and insurance executive William Lewis Moody, Jr.
William Lewis Moody, Jr.
William Lewis Moody Jr. was an American financier and entrepreneur from Galveston, Texas, who founded a private bank, an insurance company, and one of the largest charitable foundations in the United States. Moody was active in the day-to-day operations of his companies until two days before his...
, actually welcomed illegal gambling because it brought tourists who filled up his hotels. He was even known to make loans to the Maceos' syndicate.
The Free State economy was not confined simply to the island but extended through much of Galveston County
Galveston County, Texas
Galveston County is a county located in the U.S. state of Texas within the Houston–Sugar Land–Baytown metropolitan area. As of the 2010 U.S. Census, the population was 291,309. Its county seat is Galveston. League City is the largest city in Galveston County in terms of population; between...
. Throughout the county there were substantial casino operations developed by the Fertitta, Salvato and Maceo families, including the casino districts in Kemah
Kemah, Texas
Kemah is a city in the U.S. state of Texas within the Houston–Sugar Land–Baytown metropolitan area. The city's population was 2,330 as of the 2000 census. Located in Galveston County, Kemah's main industry comes from shipping...
(featuring the Chili Bowl and White House casinos among others) and Dickinson
Dickinson, Texas
Dickinson is a city in Galveston County, Texas within the Houston–Sugar Land–Baytown metropolitan area. The population was 17,093 at the 2000 census.-History:...
(featuring the Silver Moon and the Dickinson Social Club). Houstonians often humorously referred to the Galveston County line as the "Maceo-Dickinson line" (a pun referring to the Mason-Dixon line
Mason-Dixon line
The Mason–Dixon Line was surveyed between 1763 and 1767 by Charles Mason and Jeremiah Dixon in the resolution of a border dispute between British colonies in Colonial America. It forms a demarcation line among four U.S. states, forming part of the borders of Pennsylvania, Maryland, Delaware, and...
).
The vice activities on the island and in the county were not unique in Texas. San Antonio had perhaps the second most infamous red-light district in the early 20th century and most major cities in the state had significant vice activities at least until mid-century. During the Open Era Galveston's vice industries dominated, while most other areas of the state were at times forced to crack down on vice due to public pressure.
Culture
Society
The city's permissive attitude was not confined to gangs, politicians and elite businessmen. The citizenry in general took pride in the traditional Galveston approach to freedom. A notable example of this occurred at a political rally where one candidate openly blasted the "hoodlums" running illegal activities. His opponent then addressed the crowd as "my fellow hoodlums", which helped guarantee his victory in the election. Even decades later in 1993 when Vic C. Maceo, cousin of Sam and Rose, opened fire on a local who he believed owed him money, the incident was viewed by many in the community with nostalgia recalling the Free State era.Though other parts of Texas and the United States sometimes tolerated prostitution, gambling and violations of liquor laws (e.g. Dallas is said to have had 27 casinos and numerous brothels during World War II), these communities usually at least made a pretense of trying to enforce vice laws. In Galveston, vice was conducted openly; according to a 1993 Texas Monthly article by author Gary Cartwright, "Galveston's red-light district may have been the only one in the country that thrived with the blessings of both city hall and the Catholic church."
High society in the city regularly attracted some of the biggest names in the entertainment business, from Frank Sinatra
Frank Sinatra
Francis Albert "Frank" Sinatra was an American singer and actor.Beginning his musical career in the swing era with Harry James and Tommy Dorsey, Sinatra became an unprecedentedly successful solo artist in the early to mid-1940s, after being signed to Columbia Records in 1943. Being the idol of the...
to Phil Harris
Phil Harris
Harris and Faye married in 1941; it was a second marriage for both and lasted 54 years, until Harris's death. Harris engaged in a fistfight at the Trocadero nightclub in 1938 with RKO studio mogul Bob Stevens; the cause was reported to be over Faye after Stevens and Faye had ended a romantic...
. The clubs were regularly visited by famous Houstonians such as Howard Hughes
Howard Hughes
Howard Robard Hughes, Jr. was an American business magnate, investor, aviator, engineer, film producer, director, and philanthropist. He was one of the wealthiest people in the world...
, Diamond Jim West
James Marion West Jr.
James Marion West Jr. was a Texas oilman. He was the son of James Marion West Sr., the businessman who created the West family fortune. He was nicknamed "Silver Dollar Jim", because of his habit of throwing silver dollar coins toward passersby on the street...
, and Glenn McCarthy
Glenn McCarthy
Glenn Herbert McCarthy was a wildcatter and a charismatic oil tycoon. The media often referred to him as "Diamond Glenn" and "The King of the Wildcatters". McCarthy was an oil prospector and entrepreneur who owned many businesses in various sectors of the economy...
.
Galveston's attitudes toward race were at times unique in the region. The strict segregationalist
Racial segregation
Racial segregation is the separation of humans into racial groups in daily life. It may apply to activities such as eating in a restaurant, drinking from a water fountain, using a public toilet, attending school, going to the movies, or in the rental or purchase of a home...
attitudes prevalent in many parts of the U.S. were not always as stark in Galveston's society as in some other parts of Texas. One of the most striking examples of this was the gradual establishment of biracial labor unions of waterfront workers beginning in the 19th century, although eventually this alliance fell victim to segregationist influence. Racist ideology was always an ever-present factor in the city, however, as evinced by the name of the group which ran the Mardi Gras, the Kotton Karnival Kids (KKK, the same initials as the Ku Klux Klan
Ku Klux Klan
Ku Klux Klan, often abbreviated KKK and informally known as the Klan, is the name of three distinct past and present far-right organizations in the United States, which have advocated extremist reactionary currents such as white supremacy, white nationalism, and anti-immigration, historically...
).
Arts
The city had numerous venues for the arts, including the State Theater (today the Grand Opera HouseGrand 1894 Opera House
The Grand 1894 Opera House in Galveston, Texas is a historic theater currently operated as a not-for-profit performing arts theater. The Romanesque Revival style Opera House is located at 2020 Post Office Street in Galveston's Strand District.- History :...
), which featured vaudeville
Vaudeville
Vaudeville was a theatrical genre of variety entertainment in the United States and Canada from the early 1880s until the early 1930s. Each performance was made up of a series of separate, unrelated acts grouped together on a common bill...
acts in addition to motion pictures. Less formally, entertainment could be found at the Balinese Room, Hollywood Dinner Club, and other clubs featuring musical performances by major entertainers. Additionally for many years the city held free concerts on the beach by major orchestras and other performers. The entertainment venues regularly attracted some of the biggest names in the entertainment business, including Frank Sinatra, Sammy Davis Jr., Guy Lombardo
Guy Lombardo
Gaetano Alberto "Guy" Lombardo was a Canadian-American bandleader and violinist.Forming "The Royal Canadians" in 1924 with his brothers Carmen, Lebert, and Victor and other musicians from his hometown, Lombardo led the group to international success, billing themselves as creating "The Sweetest...
, Jack Benny
Jack Benny
Jack Benny was an American comedian, vaudevillian, and actor for radio, television, and film...
, Gene Autry
Gene Autry
Orvon Grover Autry , better known as Gene Autry, was an American performer who gained fame as The Singing Cowboy on the radio, in movies and on television for more than three decades beginning in the 1930s...
, Phil Silvers
Phil Silvers
Phil Silvers was an American entertainer and comedy actor, known as "The King of Chutzpah." He is best known for starring in The Phil Silvers Show, a 1950s sitcom set on a U.S...
, Jane Russell
Jane Russell
Jane Russell was an American film actress and was one of Hollywood's leading sex symbols in the 1940s and 1950s....
, George Burns
George Burns
George Burns , born Nathan Birnbaum, was an American comedian, actor, and writer.He was one of the few entertainers whose career successfully spanned vaudeville, film, radio, television and movies, with and without his wife, Gracie Allen. His arched eyebrow and cigar smoke punctuation became...
, Duke Ellington
Duke Ellington
Edward Kennedy "Duke" Ellington was an American composer, pianist, and big band leader. Ellington wrote over 1,000 compositions...
, and Bob Hope
Bob Hope
Bob Hope, KBE, KCSG, KSS was a British-born American comedian and actor who appeared in vaudeville, on Broadway, and in radio, television and movies. He was also noted for his work with the US Armed Forces and his numerous USO shows entertaining American military personnel...
.
Government and law enforcement
After experimenting with a commission governmentCity commission government
City commission government is a form of municipal government which once was common in the United States, but many cities which were formerly governed by commission have since switched to the council-manager form of government...
following the 1900 hurricane, Galveston adopted the council-manager system
Council-manager government
The council–manager government form is one of two predominant forms of municipal government in the United States; the other common form of local government is the mayor-council government form, which characteristically occurs in large cities...
in the 1920s. At the beginning of Prohibition the city council originally opposed gambling and vice; though the council members were tolerant of small-scale activities which had always been a part of the city, they were more concerned about organized crime. As the Maceos reorganized vice in the city and made these businesses more respectable, the council became far more accepting of the criminal enterprises, particularly as they became linchpins of the local economy.
Law enforcement at the county level, and to some degree at the state level, became notoriously tolerant of the illegal activities in Galveston, in no small part because of the prosperity they generated, and the bribery and influence peddled by the Maceos. The city police very early on became entirely complicit.
Galveston County Sheriff Frank Biaggne served from 1933 to 1957 and was known for largely disregarding the mainstream illegal activities on the island. When a state committee investigating illegal activities on the island asked the sherriff about his reluctance to raid the Balinese Room, he replied only that it was a "private club" and he was not a "member". The county attorney
County attorney
A county attorney in many areas of the United States is the chief legal officer for a county or local judicial district. It is usually an elected position...
and the local police commissioner
Police commissioner
Commissioner is a senior rank used in many police forces and may be rendered Police Commissioner or Commissioner of Police. In some organizations, the commissioner is a political appointee, and may or may not actually be a professional police officer. In these circumstances, there is often a...
were similarly complicit (Commissioner Johnston once bragged about being on the payroll of 46 brothels). According to a former Texas Ranger
Texas Ranger Division
The Texas Ranger Division, commonly called the Texas Rangers, is a law enforcement agency with statewide jurisdiction in Texas, and is based in Austin, Texas...
, a local justice of the peace would readily issue search warrants for local clubs to the Rangers, but would immediately telephone the owners to warn them.
Law enforcement's corrupt attitude generally was not at the expense of the people. Apart from the economic benefits provided by the Maceos, these bosses provided a high degree of protection to the island's citizens. When serious crimes were committed the local police would sometimes contact the Maceos to have the matter dealt with. However, the island was not completely peaceful; threats at the point of a gun were a common means for the Maceo gang to ensure control. Though the average citizen was relatively safe, gangland slayings of potential rivals did take place on occasion.
Maceos move on
| Year | Real income | Today's dollars |
|---|---|---|
| 1948 | $3.24 million | $ |
| 1949 | $3.43 million | $ |
| 1950 | $3.84 million | $ |
The heyday of the Free State was over by the 1940s. Because of conflicts with the United States Treasury, the Hollywood Dinner Club was shut down in the late 1930s. The local clubs found it increasingly difficult to attract major entertainment figures. Gambling had been legalized in Nevada in 1931 and this distinct advantage over Galveston, and other illegal gambling centers, gradually lured mob
American Mafia
The American Mafia , is an Italian-American criminal society. Much like the Sicilian Mafia, the American Mafia has no formal name and is a secret criminal society. Its members usually refer to it as Cosa Nostra or by its English translation "our thing"...
figures such as New York City's Bugsy Siegel
Bugsy Siegel
Benjamin "Bugsy" Siegel was an American gangster who was involved with the Genovese crime family...
to Las Vegas
Las Vegas, Nevada
Las Vegas is the most populous city in the U.S. state of Nevada and is also the county seat of Clark County, Nevada. Las Vegas is an internationally renowned major resort city for gambling, shopping, and fine dining. The city bills itself as The Entertainment Capital of the World, and is famous...
. The competition created by the up-and-coming entertainment center in the desert substantially challenged the island on the Gulf. Still, even during its later years, the Balinese Room was able to attract the likes of Tony Bennett
Tony Bennett
Tony Bennett is an American singer of popular music, standards, show tunes, and jazz....
and Peggy Lee
Peggy Lee
Peggy Lee was an American jazz and popular music singer, songwriter, composer, and actress in a career spanning six decades. From her beginning as a vocalist on local radio to singing with Benny Goodman's big band, she forged a sophisticated persona, evolving into a multi-faceted artist and...
, among others. And as late as 1950 the annual income of the Maceo empire was reportedly $3.84 million ($ in today's terms).
By the late 1940s corruption in Texas at the state and county level was in decline, while pressure against vice across the state and across the nation was on the rise. Even San Antonio
San Antonio, Texas
San Antonio is the seventh-largest city in the United States of America and the second-largest city within the state of Texas, with a population of 1.33 million. Located in the American Southwest and the south–central part of Texas, the city serves as the seat of Bexar County. In 2011,...
's famed Sporting District
San Antonio Sporting District
The Sporting District in the U.S. city of San Antonio was a red-light district in the late 19th and early 20th century. It was established by the city council to manage prostitution in the city. For a time it was one of the nation's largest vice districts with venues ranging from brothels to...
, once one of the nation's largest red-light districts, was shut down in 1941. As state investigations of the Maceo's activities became more serious, Sam and Rose began plans to move their empire to Nevada. The Maceos became major investors in the Desert Inn
Desert Inn
The Desert Inn was a Paradise, Nevada, hotel/casino that operated from April 24, 1950, to August 28, 2000. Designed by noted New York architect Jac Lessman, it was the fifth resort to open on the Las Vegas Strip. The property included an 18-hole golf course. Locals nicknamed the resort "The D.I."...
, which was the largest and most elaborate casino resort on the Las Vegas Strip
Las Vegas Strip
The Las Vegas Strip is an approximately stretch of Las Vegas Boulevard in Clark County, Nevada; adjacent to, but outside the city limits of Las Vegas proper. The Strip lies within the unincorporated townships of Paradise and Winchester...
when it opened in 1950. Moe Dalitz
Moe Dalitz
Morris Barney "Moe" Dalitz was a Jewish American bootlegger, racketeer, casino owner and philanthropist who was one of the major figures who helped shape Las Vegas, Nevada in the 20th century. He was often referred to as Mr...
(who opened the Desert Inn) and Sam Maceo had long been allies and business partners. The Las Vegas project's financing was largely facilitated by the Maceos and Moodys through ANICO (which loaned millions to known mob figures). Sam and Rose Maceo transferred controlling interest of most of their Galveston empire to a new group dominated by the Fertitta family, with investments coming from business interests around the island. The Fertitta group never wielded the influence that the Maceos had. Sam Maceo died in 1951 and Rose in 1954.
Free State ends
During the 1950s more dangerous criminal elements took advantage of Galveston's lax law enforcement and the absence of the Maceo brothers' influence. Non-vice crime increased in the city. The New Orleans crime syndicateNew Orleans crime family
The New Orleans crime family is one of the oldest American criminal organizations in activity. It is based in New Orleans and parts of southern Louisiana in the United States. Its status today is unknown, as it remained in the shadows since 1993...
, headed by Carlos Marcello
Carlos Marcello
Carlos "The Little Man" Marcello was a Sicilian-American mafioso who became the boss of the New Orleans crime family during the 1940s and held this position for the next 30 years.-Early life:...
, ran guns to Cuba through the island.
By the 1950s gambling and prostitution were being actively repressed in most parts of Texas. In 1953, the police commissioner, Walter L. Johnston, under pressure from local citizens groups concerned about moral decline and high rates of venereal disease, shut down the red-light district. However, the mayoral victory of George Roy Clough, a supporter of regulated vice, led to the district's being re-established in 1955. That year Galveston was labeled by national antiprostitution groups as the "worst spot in the nation as far as prostitution is concerned".
Paul Hopkins won the 1956 election for sheriff and set about shutting down the island's illegal activities once and for all. One of the first successful busts of the gambling industry was an undercover operation by Texas Ranger Clint Peoples at the Balinese Room. In 1957 State Attorney General
Texas Attorney General
The Texas Attorney General is the chief legal officer of the State of Texas.The department has offices at the William P. Clements State Office Building at 300 West 15th Street in Austin.-History:...
Will Wilson
Will Wilson
Will Reid Wilson, Sr. was a prominent Democratic politician in his native Texas best known for his service as attorney general of Texas from 1957-1963. In 1968, he joined the Republican Party to support the election of Richard M. Nixon as U.S. President. Nixon thereafter named Wilson an assistant...
and Department of Public Safety
Texas Department of Public Safety
The Texas Department of Public Safety is a department of the government of the state of Texas. The DPS is responsible for statewide law enforcement and vehicle regulation. The Public Safety Commission oversees the DPS. Its five members are appointed by the Governor of Texas and confirmed by the...
head Homer Garrison (with help from former FBI agent Jim Simpson) began a massive campaign of raids that wrecked the gambling and prostitution industry on the island, along with liquor imports. Forty-seven clubs, brothels, and other vice establishments were reportedly closed, and 2,000 slot machines were destroyed. Though officials said they destroyed all of the city's gaming equipment, some locals including R.S. Maceo, nephew of Sam and Rose, claimed that most of the equipment was shipped to Las Vegas before authorities ever discovered it.
Aftermath
As the vice industries crashed, so did tourism, and the rest of the Galveston economy declined with it. The economy stagnated during the 1950s, and after 1957 the Free State was effectively gone. Fort Crockett, which had been used as an Army recreation center following the war, was shut down in 1955. Many of the island's most important entertainment business leaders left the city and set up shop in Las Vegas. Neither the economy nor the culture of the city was the same afterward. Civic leaders made several failed attempts at new ventures, including the Oleander Bowl football tournament (1948) and the Pelican IslandPelican Island (Texas)
Pelican Island is an island located in Galveston County, Texas. It is part of the city of Galveston and is linked to Galveston Island by a causeway. The island is home to the Texas A&M University at Galveston as well as USS Stewart , USS Cavalla and Seawolf Park...
bridge (1956) for access to a new industrial park, which never materialized. The city's television station, KGUL, moved to Houston in 1959; the telephone company headquarters and many other businesses relocated off the island as well. To make matters worse, some of the island's attractions were destroyed by Hurricane Carla
Hurricane Carla
Hurricane Carla was one of two Category 5 tropical cyclones during the 1961 Atlantic hurricane season. It struck the Texas coast as a Category 4 hurricane, becoming one of the most powerful storms to ever strike the United States. Hurricane Carla was the second most intense storm to ever...
in 1961 and never rebuilt.
The economy continued in muted form. The Splash Day celebrations restarted, drawing tourists to the coast. Many hotels, banks, and some insurance companies remained as did the medical and nursing schools, as well as the hospitals. Efforts at historical preservation (notably including those of George P. Mitchell
George P. Mitchell
George Phydias Mitchell is an American businessman, real estate developer and philanthropist from Texas.-Biography:He was born to Greek immigrant parents in the port city of Galveston, Texas. Mitchell earned a degree from Texas A&M University with an emphasis in geology and petroleum engineering...
) gradually helped to re-establish the island's tourism industry, though in a very different form from the past. Nonbinding referenda were put forward in the 1980s regarding legalization of casinos in the city but were defeated by the voters each time, demonstrating the changes in the city since the bygone era (though an informal poll in 2008 indicated this sentiment may be changing).
In popular culture
Though this era in Galveston's history has not received a great deal of attention in popular culture, there has been some popular fiction and true crime story-telling centered on the era. Some notable examples include the novels Under the Skin by James Blake, No Greater Deception: A True Texas Story by Sydney Dotson, Galveston by Suzanne Morris, and Overlords by Matt Braun, as well as the anthology Lone Star Sleuths: An Anthology of Texas Crime Fiction by Bill Davis, et al..Galveston, The Musical! music and lyrics by Mark York, book by Andree Newport, Robert Wilkins and Mark York, opened in 2003 at Galveston's Strand Theatre
Strand Theatre
- England :* Royal Strand Theatre, London* Strand Theatre , London in the United States...
and in 2011 at The Hobby Center in Houston; the musical theater production centers on the arrival of the Maceo Brothers, who created their own empire that sustained Galveston during this period of the island's history.
See also
- American MafiaAmerican MafiaThe American Mafia , is an Italian-American criminal society. Much like the Sicilian Mafia, the American Mafia has no formal name and is a secret criminal society. Its members usually refer to it as Cosa Nostra or by its English translation "our thing"...
- Gambling in the United StatesGambling in the United StatesGambling is legally restricted in the United States, but its availability and participation is increasing. In 2007, gambling activities generated gross revenues of $92.27 billion in the United States. Commercial casinos provided 354,000 jobs, and state and local tax revenues of $5.2 billion...
- History of the Galveston Bay AreaHistory of the Galveston Bay AreaFor a period of over 7000 years, humans have inhabited the Galveston Bay Area in what is now the United States. Through their history the communities in the region have been influenced by the once competing sister cities of Houston and Galveston, but still have their own distinct history...
- History of vice in TexasHistory of vice in TexasThe history of vice in the U.S. state of Texas has been an important part of the state's past and has greatly influenced its development. Vice activities, such as gambling and prostitution, have historically been a significant facet of both the state's culture and its economy.Law enforcement...
- Other illegal gambling empires of the 1920s–1950s:
- Miami
- New Orleans
- Atlantic City, New JerseyAtlantic City, New JerseyAtlantic City is a city in Atlantic County, New Jersey, United States, and a nationally renowned resort city for gambling, shopping and fine dining. The city also served as the inspiration for the American version of the board game Monopoly. Atlantic City is located on Absecon Island on the coast...
- Hot Springs, ArkansasHot Springs, ArkansasHot Springs is the 10th most populous city in the U.S. state of Arkansas, the county seat of Garland County, and the principal city of the Hot Springs Metropolitan Statistical Area encompassing all of Garland County...
- Phenix City, AlabamaPhenix City, AlabamaPhenix City is a city and the county seat in Russell County in the U.S. state of Alabama. Portions of Lee County are addressed as Phenix City, 36870 ZIP code, for the sole purpose that Smiths Station does not have full incorporation to annex the area...