The Free State of Galveston (sometimes 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 first half of the 20th century. Today the term is sometimes used to describe the culture and history of that era. This free-wheeling period was at its peak during the Prohibition and Depression eras, but lasted well past the end of World War II.
During the Roaring 20s Galveston Island emerged as a nationally-known resort town attracting celebrities from around the nation. 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 of the most important figures of the era were the organized crime bosses Sam and Rosario Maceo who ran the major casinos and clubs on the island and were heavily involved in the government and the tourism industry in general. 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.
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 vice activities. By the 1950s this era had ended.
Background
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During the mid- to late-19th century, Galveston was the largest city in Texas. It had become an important national commercial center and one of the nation's busiest seaports. Its port was able to capitalize on Texas' rapid ascension 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 1900s.
The 1900 Hurricane was an unparalleled disaster. According to some estimates 6,000 people died on the island, in addition to thousands more on the coast and along the shores of the bay. Galveston's rebuilding proceeded quickly and by 1912 the port had become the second-leading exporter in the nation, behind New York. Nevertheless, after the 1900 storm and another in 1915, many investors avoided investment in the island. 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 such that 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.
Immediately after the hurricane, Galveston worked to revive itself as 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 was opened and became recognized as the fastest interurban rail system in the country.
The Port of Galveston, which had been a major port of entry for Texas and the West during the 1800s, experienced a new wave immigration in the early 1900s. 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 (as well as Brazoria).
In 1901 Texas' oil boom began, 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 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. Constitution, ratified in 1919, forbid the consumption and sale of alcoholic beverages, and initiated the Prohibition era. The new law was widely unpopular throughout the nation and bootlegging became common. Galveston's already lax social attitudes allowed this trend to blossom in the city. Brothels and other illegal businesses continued to develop unfettered. 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.
In this context the Maceo family enters history. The family had immigrated from Palermo, Sicily, to Louisiana in 1901. Two brothers, Rosario (Rose) and Salvatore (Sam) Maceo, trained as barbers and later moved to Galveston shortly before World War I to start their business. As Prohibition took hold the brothers began to give gifts of (low-quality) wine that they were able to smuggle to their customers. 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 gangs allowing 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. And 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 gradually expanding 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.
Economy
As with much of the rest of the country, and particularly in Texas, Galveston boomed in the 1920s. However eve
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