Tale of Two Cites
Home Up George and Maria


BROTHER AND SISTER, Chapter Four

TALE OF TWO CITIES

Written by Rick Archer
 

 

 


THE GREAT STORM

 

The day would come when George would take Sam Maceo's place as the new Mr. Galveston.  To understand the magnitude of George's accomplishment, let us start with a brief history lesson of Galveston. 

Galveston was originally inhabited by Indians, then pirates, then Spanish, and finally the settlers who would become the Texans.  Following Texas Independence from Mexico in 1836, entrepreneurs discovered the value of Galveston's world-class deep-water seaport.  Throughout the 1800s, Galveston and Houston were locked in bitter economic rivalry.  Galveston was the leader and it wasn't close.

Houston had railroads, but Galveston had the seaport.  The 1900 International Yearbook ranked Galveston the 5th port in America.  It was an unparalleled economic engine that created prosperity for everyone on the Island.  Considered the Pearl of the Caribbean and Gulf of Mexico, Galveston Island was so busy it rivaled Hong KongAt the turn of the century Galveston was now one of the richest cities in the world on a per capita basis.  Huge southern mansions lined Broadway and grand houses were scattered throughout the neighborhoods.  The Rich were very rich and everyone enjoyed a high standard of living. Cooled by balmy ocean breezes, Galveston was an absolute paradise. 

 

The 1900 census reported Galveston’s population as 38,000.  It boasted an expansion rate that was among the highest of all Southern cities.  The gain of nearly thirty percent from 1890 was an undeniable indicator that Galveston was well on its way to becoming one of the great cities of America.  In 1900 the city was ranked the second wealthiest (per capita) in the nation.  One day it all went to Hell.

 

And then the Hurricane hit.

It was September in 1900.

The people of Galveston never knew it was coming.

By the time they found out, it was too late.

There was no escape.

1 in 4 citizens died, 6,000 in all.

 

Oddly enough, the worst natural disaster in American history was never given a name.  To this day, they simply call it The Great Storm.

Ironically, Galveston had been debating the wisdom of building a seawall throughout the latter part of the 1800s.

"Within the last two or three years, people have begun to think that the islands and peninsulas along the Texas and Louisiana Coast are unsafe places to inhabit due to the threat of hurricane.  Galveston Island is but a waif of the ocean, liable at any moment to be engulfed and submerged by the self-same power that gave it form."    -- Braman's Information about Texas, 1858

However, like many things in life, the soothsayers were unable to capture the attention of the townspeople until it was too late.  The deadly Galveston hurricane still holds the record for the highest death total from a disaster in America history.  At least 6,000 people lost their lives that day, quite possibly even more.  No one will ever know the true count.  By comparison, famous disasters such as the San Francisco earthquake (3,000), 9-11 (3,000), Pearl Harbor (2,500), and Hurricane Katrina (2,000) don't even come close.

 

The terrible death total can be attributed to three factors.  Based on accounts from several books such as Isaac's Storm, the U.S. Weather Service was run by ignorant yahoos at the turn of the century.  Due to a dangerous combination of arrogance and prejudice, the U.S. Weather Service was embroiled in a rivalry with their Cuban counterparts.  One month prior to the Great Storm, the U.S. director prevented all Cuban weather reports from reaching American soil.  It's a long story, but upshot is the U.S. Weather Service figured it was smart enough to do the job on its own.  Big mistake. 

The hurricane passed right over Cuba.  It was so large its distant winds crossed Key West, the southernmost point in Florida.  Unable to access Cuban weather data, the U.S. analysts based their decision on Key West reports instead.  When the distant winds over Key West had a sudden drop-off in intensity, the analysts assumed this meant the eye of the hurricane had just begun to curve in a northeast arc from Cuba.  After all, everyone knows that hurricanes curve to the north.  On the day the Great Storm hit Galveston, the U.S. Weather Service had sent out a dispatch which said the Cuban storm was in the Atlantic Ocean.  Ironically, the Cubans got it right. 

 

Ultimately it was the element of surprise that was mainly responsible for the high death toll.  Victimized by the bogus report, the people of Galveston had no idea a Category Four storm was approaching.   Completely blind-sided, the citizens had no way to escape.  Back in those days, there was only a single narrow bridge that connected Galveston to the mainland.  The moment the hurricane hit, that bridge was destroyed.  Now the citizens were trapped.

The third factor was the inability to escape.  There was no such thing as 'high land' to retreat to.  Lacking protection from the incoming flood waters, a 15-foot storm surge inundated the city.  The wood structures were not strong enough.  Once their house fell, the people inside were goners.  Structures were flattened and stranded helpless victims in turbulent waters.  Some were lucky enough to grab a piece of wood to stay afloat in the raging high water, but only the strongest avoided drowning.    

The Great Storm became the defining event in Galveston history.  The surge cleared the land of every structure on the Gulf of Mexico side of the island.  Eleven blocks consisting of 4,000 structures were demolished.  Only one third of the city's buildings stood in the aftermath of the storm.  Galveston lay in ruins.

Throughout the 1800s, Galveston had been the largest, most prosperous city in Texas.  A major center of commerce, with a population of 38,000 at the turn of the century, Galveston had been poised for greatness.  In the blink of an eye, that was gone.  The city had been reduced to rubble.  Overnight the death total reduced the population from 38,000 to 32,000.  Seeing how hopeless things were, many of the survivors moved away. 

Galveston's new population count was 25,000. 

 
 


TALE OF TWO CITIES

 

By every standard, Galveston was well ahead of Houston at the turn of the century.  Located just 50 miles apart, Galveston's population was 38,000, Houston's population was 44,000.

Houston is a delta of sorts.  A great deal of East Texas and North Texas rainfall passes through Houston on its way to the gulf.  For example, if it rains hard in Dallas, flood waters come to Houston.  It would help if Houston had a major river with a swift current.  Instead Houston has a half-dozen narrow, slow-moving bayous which take their sweet time draining the swampy floodplain.  Due to the swampland, mosquitoes are a serious problem as is the fearsome heat and humidity. 

Whenever it rained, the dirt roads turned to thick mud.  The climate was almost unbearable.  It was so hot and muggy, no one really wanted to live in such nasty place.  Ulysses S. Grant once said if he owned Hell and half of Texas, he would rent out Texas and live in Hell.  Houston pretty much fit that description. 

However, Houston did have the advantage of Buffalo Bayou, a reasonably wide, lazy waterway perfect for Texas cotton farmers to float their crops downstream.  From there, cotton was loaded onto trains and whisked away in every direction.

Houston was beat up by the Great Storm as well, but survived the hurricane relatively unscathed due to being 50 miles inland.  Galveston wasn't so lucky.  By some accounts Galveston didn't even exist anymore.  Rebuilding would take a long time. 

 

Prior to the Great Storm, Houston was at best an afterthought to the island breezes.  Houston's economy was stagnant.  Compared to Galveston's elegant homes and state of the art buildings,   Houston was a dirty, unimpressive ramshackle town that existed primarily as a place for railroads to export lumber and cotton.  Much of Houston's exports went directly to Galveston from where it was shipped to other parts of the country.  In other words, Houston was supporting Galveston's booming economy.

Fate can be very cruel.  On September 8, 1900, the Great Storm flipped the Arrow of Destiny.  However, the hurricane was not the only stroke of misfortune.  The second bad break came four short months later.  In January 1901, the largest oil field discovery in world history took place in Beaumont, a small city in East Texas. 

The Spindletop oil discovery would change everything.  No other oil field in the world had ever been so productive.  Now people wondered if there was more oil to be found in Texas.  This possibility generated a frenzy of successful oil exploration throughout the state. 

 

The ensuing economic development became known as the Texas Oil Boom.  Thanks to Texas, overnight the United States became the world's leading oil producer.  Spindletop was equidistant from Houston and Galveston.  Beaumont was 66 miles northeast of Houston and 66 miles northeast of Galveston.  One of these two cities would be responsible for shipping Spindletop oil overseas and to other parts of America. 

Which city would it be??  So this is a book about Fate, correct?  Well, cities can have a Fate too and Galveston was in serious trouble.  Spindletop presented a huge opportunity at the exact moment Galveston was unable to respond.  Although Galveston possessed the finest natural port in the entire South, it was unable to invest in the burgeoning oil industry.  Beaumont already had an existing rail route to Houston, so why bother building one to Galveston?  Besides, Galveston's capital was tied up in building a seawall to prevent future disasters.  This was the same seawall project that had been delayed for years.  Not surprisingly, this time the vote to build the seawall had passed with little opposition.  Someone with a very dark sense of humor said the people who had previously voted against the seawall project must be dead now. 

Galveston's leaders got another piece of bad news.  Following the Great Storm, they had hoped investors would rush to rebuild Galveston.  On the contrary, the money men stayed away in droves.  After the storm, investors were understandably afraid of Galveston's vulnerable location.  They preferred to invest in Houston instead. 

Sorry to say, Galveston's string of bad luck wasn't over.  Not by a long shot.  This was just the start.  No one ever said that life was fair.

 

The man who put the knife in Galveston's back was Jesse H. Jones.  If this name sounds familiar, think 'Jones Scholarship'. Yes, this was the same man who created the scholarship fund that caused me so much anguish back in high school.

Jesse H. Jones was Houston's original mover and shaker.  He arrived in Houston in 1898.  A builder and investor, Jones had just begun to make his mark when the Great Storm and Spindletop took place back to back.  Jones took careful note of the Spindletop oil discovery.  He anticipated that the oil strike plus the growing importance of rice crops would create a rapid shift in the economy in Texas.  Sensing Houston was perfectly poised to take advantage, Jones made a recommendation that would accommodate the explosive growth of the Texas economy. 

Jesse Jones proposed building the Houston Ship Channel!!

Houston business leaders agreed this was a brilliant move.  Everyone knew Galveston possessed a far superior port.  It was deeper and far more convenient to shipping in the Gulf of Mexico.  Furthermore it was right on the Gulf while Houston was 50 miles inland.  But the Texas economy could not wait for Galveston to regroup, so the decision to build the Houston Ship Channel was quickly approved. 

No doubt Galveston's leaders wanted to tear their hair out.  As Houston began its rise to prominence, Galveston was too crippled to make a counter-move.  Galveston officials stared glumly as Houston dredged out Buffalo Bayou.  The engineers created an artificial canal deep and wide enough to serve huge oil tankers. 

Ironically, the Houston Ship Channel extended practically to the edge of downtown Houston.  Smug executives in their tall skyscrapers could look out and survey their growing empire. 

Poor Galveston.  Crippled by the hurricane, Galveston watched in despair as Spindletop oil was sent by train and truck to Houston.  This momentous break shifted virtually all economic development of the region from Galveston to Houston.  Galveston was reeling and Jesse Jones had just supplied the kill shot. 

Houston was no longer dependent on Galveston's port. The new ship channel was not only protected from the ocean, it was far better positioned geographically to use the railroads and new highways for shipping than isolated Galveston Island. 

The opening of the Ship Channel made Houston an international seaport overnight.  Oil, rice, and cotton came straight to Houston shipyards and was redirected to distant ports.  Galveston's dominant share of Houston's economy evaporated overnight. 

Jesse Jones was not only a shrewd anticipator of economic trends, he also possessed uncanny good luck and timing.  Just months before the Ship Channel was completed in 1914, the Panama Canal opened.  Ordinarily Galveston, the superior natural deepwater seaport, would have been poised to take advantage.  But they were still building their seawall.  Houston became the obvious next choice as the first stop for all sea traffic to and from the Panama Canal.  The Panama Canal should have been Asia to Galveston.  Instead it was Asia to Houston.

Jesse Jones' lucky streak continued when World War I broke out in 1914.  Since World War I was highly mechanized, this created an overwhelming thirst for more oil that could only be met from one place on earth - Houston, Texas. 

The combination of the Houston Ship Channel, Panama Canal and World War I propelled Houston to world prominence.  Houston was now the dominant seaport in the South and the nation’s petrochemical leader.  The Great Storm had turned Houston into the Energy Capital of the world. 

And what about Galveston?  No one gave it a second thought.  At the moment it had nothing going for it. 

Since Houston is my hometown, from my point of view, I say thank you, Jesse Jones, for your foresight... even if I didn't win your college scholarship.  But my heart goes out to Galveston. 

 
 


INTO THE VOID

 

The seawall was completed 1915, much too late for Galveston's port to stage a comeback.  Houston's gain was Galveston's loss.  Houston's Ship Channel would forever more hold the upper hand. 

Alarmed at the city's terrible run of bad luck, the civic leaders decided that 'tourism' was their best bet to make a comeback.  For starters, the new seawall helped create a very beautiful beach right in front of the city.  So why not put a hotel there?

In 1911, the Hotel Galvez was completed.  Unfortunately, the city's economy was still in dry dock.  Despite the beautiful hotel and the convenient beach, there was no rush to fill the Galvez.

Strangely, the event that got Galveston moving again was the Prohibition Era (1920-1933).  In hindsight, we now know that a major unintended consequence of Prohibition was the growth of urban crime organizations... Al Capone, for example.

Into Galveston's economic vacuum came Sam Maceo.  Referred to as the 'Galveston Godfather' and 'Mr. Galveston', Maceo quickly became the most important man in the history of Galveston.

 

Sam Maceo and his brother Rosario came to Galveston shortly before the outbreak of World War I.  They were barbers by trade, but soon discovered a lucrative side business.  As Prohibition took hold, the Maceo brothers began to smuggle in cheap wine and rum to give as gifts to their customers. 

The booze-laden islands of Jamaica, Cuba, and Bahamas as well as high-quality liquor from Canada found its way to Galveston.  35 miles southwest of the island was a rendezvous point known as Rum Row.  Bootleggers with small, fast speedboats met schooners outside the jurisdictional waters of the the U.S., then carried the liquor onto secret rendezvous points hidden along Galveston's deserted beaches.  Some of the booze stayed in Galveston while much of it made its way north.  Seeing how interested their customers were in the liquor, Sam and Rosario Maceo emerged as the underworld leaders in Galveston.

The Maceo brothers allied themselves with Beach Gang leader Ollie Quinn and opened the Hollywood Dinner Club, Galveston's most elegant night club.  Sam Maceo's smooth personality made him the face of the nightclub.  It was during this time Maceo developed the sharp interpersonal skills that would come in handy when dealing with Island politicians.  In short order, Maceo learned the name of every person of importance on the island and Galveston County.  Apparently those political skills paid off handsomely.  He persuaded law enforcement to do the dirty work for him.  Fortuitous arrests of rival gang leaders allowed the brothers to gain complete control of the island's underworld without a serious blood bath.  By the late 1920s, the upper echelon of the Galveston gangs had gone by the wayside.  With their enemies in prison, the Maceos had garnered complete control of the Galveston underworld.

As one can see from this story, Sam Maceo operated more like a clever politician than a gangster.  Known as the "Velvet Glove," Maceo's smooth style and ability to influence people was legendary.  Through his vast network of connections, Maceo wielded influence comparable to an elected official and business leader at the same time.  Sam Maceo maintained relationships with celebrities and politicians throughout Texas and the United States.  Thanks in large part to his celebrity and good deeds, law enforcement found it easier to look the other way. 

 

Once Sam Maceo was in control, he built an empire based on alcohol, gambling, prostitution, nightclubs and first-class entertainment.  Unlike the Brando character in the Godfather, Maceo was not known for his use of force.  Since Maceo was allowed to rule Galveston without interference, he always preferred to use persuasion in lieu of force.  Although his brother Rosario was known to use violence on occasion, by and large Sam Maceo was a benign presence who made sure there were no widespread vendettas.

Galveston had long been a hot spot for prostitution dating back to its origins as a pirate hangout.  Legend has it that Galveston and the State of Texas owed a large debt of gratitude to a prostitute named Emily Morgan.  This former slave girl would come to be known as "The Yellow Rose of Texas" due to her mulatto light-brown skin color. 

Emily Morgan caught the eye of Generalissimo Santa Ana during his visit to a Galveston brothel following his brutal victory at the Alamo.  Santa Ana was so smitten with Emily's charms, he was unwilling to part with her.  Santa Ana took Emily with him to his campground at nearby San Jacinto.  This area was a swampland located on the banks of the Buffalo Bayou halfway between Houston and Galveston.  The Yellow Rose distracted Santa Ana so thoroughly that he failed to make sure the grounds were properly guarded. 

The following morning, the Texas army under General Sam Houston surprised the flat-footed Mexicans.  The fight lasted just 18 minutes.  In that brief time, 600 Mexican soldiers were killed and 730 captured.  By contrast, only nine Texans died.  Was it the superior fighting ability of the Texas men or the superior charms of the Texas women that created Texas Independence?  There is little doubt Santa Ana wasn't the only man who let down his guard thanks to Emily Morgan and the scarlet ladies who came along with her.  Texas had its independence and the nearby community got its name... Houston. 

Perhaps the success of the Yellow Rose and her friends had in disarming the Mexican army can explain Galveston's relaxed attitude towards women of the night.  During the Maceo Era, Galveston law enforcement more or less turned a blind eye towards prostitution.  You never knew Texas history was so titillating, did you?

 

The benign attitude extended to gambling and drinking as well.  Other than the occasional wink-wink raid where Maceo was tipped off in advance, Galveston law enforcement pretty much let Sam Maceo do whatever he wanted to do.  Nor did the State of Texas bother to interfere.  For some strange reason, the rest of the state seemed content to let Galveston conveniently ignore the vice laws.  During this wild and crazy time, the city became known as the 'Free State of Galveston'.  The idea was that Galveston was so special it did not have to obey the rules that applied to the rest of Texas.  My guess is that most Texas politicians didn't like Prohibition any more than the next guy.  They enjoyed having a place where they could go to have some fun while saving their pompous law and order speeches for home.

Since gambling and bootleg liquor went hand-in-hand with prostitution, the back rooms of the popular nightclubs along the Galveston seawall became known for illegal activities during the Prohibition Era.  People from across the state and nearby Louisiana flocked in to join the fun.  In addition, all those Houston millionaires made sure to buy a pleasure palace on Galveston Island to accommodate their frequent visits.  In this way, much of that new-found Houston oil money made its way back into the Galveston economy.  Sam Maceo became the talk of the town.  Thanks to the prosperity generated by Maceo's empire of decadence, the Twenties and Thirties would become the heyday of Galveston.  In the process, Sam Maceo turned Galveston into the Sin City of the Gulf Coast.  

 

 
 
Deep in the South of Texas
Not so long ago
There on a crowded island
In the Gulf of Mexico
It didn't take too much money
Man, but it sure was nice.
You could dance all night if you felt all right,
Drinking whiskey and throwing dice.
And everybody knows
It was hard to leave.
And everybody knows
It was down at the Balinese.

   -- Down at the Balinese, ZZ Top

 


sAM MACEO'S
BALINESE ROOM

 

When speaking of the Maceo Era, people often refer to Galveston as the Las Vegas of the Thirties.  This phrase is highly ironic.  Vegas and Galveston came to have a very interesting connection.  Because he broke laws, Sam Maceo was considered a gangster, but at heart he operated more like a Vegas businessman.  Over time, the Maceo brothers came to own all the major vice-oriented businesses on the Island.  Turning his nightclubs into casinos, Galveston was Vegas long before Vegas come to prominence in the late 40's. 

In the midst of all this sin and debauchery, the Balinese Room stood out as the most famous nightclub.  Built in 1942, the Balinese was ostensibly a restaurant, but there was a well-known casino at the back.  The casino was placed at the very back of the long pier which extended far into the Gulf.  The pier was so long, there was a standing joke which claimed the waiters caught fish to sell during their break.

Sam Maceo used a well-known real estate technique known as 'location location location' to ensure his nightclub's success.  He put the Balinese right across the street from the magnificent Hotel Galvez.  Smart move.  Sam Maceo cultivated a relationship with William Moody, Galveston's business leader and owner of the Hotel Galvez.  Moody and Maceo got along just fine.  Thanks to Maceo, Moody's giant hotel stayed packed with celebrities and guests who flocked to visit the nation's hottest resort town.  Imagine their delight to discover that every vice known to man was open to all, a major lure during Prohibition.  Thanks to its bad reputation, Galveston became the playground of the Southwest, even bigger than New Orleans.

Though certainly no saint, Sam Maceo was extremely civic-minded.  His assistance to charities, churches and schools generally kept his organization from having much trouble with the law.  Other than the occasional perfunctory pre-arranged raid, law enforcement left him alone.   Maceo endeared himself not just to William Moody, but to all his Galveston business friends by sharing profits throughout the city.  In this way, Maceo returned prosperity to an economy still depressed from hurricane devastation thirty years earlier.   No one dared upset the apple cart.  Legitimate island businesses such as banking and hotels were able to thrive thanks to the illegal activities.  Real estate was booming thanks to Houston millionaires buying up those fancy mansions along Broadway Boulevard. 

Since Maceo had tacit support from the business community, it stands to reason the politicians were also under his spell.  Maceo's benevolence helped considerably.  During his time as the island's dominant figure, he never abused his power.  For example, as a rule he did not attempt to prevent others from prospering so long as it did not interfere with his business interests.   Thanks to Sam Maceo, prosperity had returned to Galveston.  Maceo was the guy who turned the lights back on.  Let the Good Times Roll.

 
 


FRANK SINATRA

 
 

Rumors persist that Sam Maceo was the inspiration for the Godfather scene involving Vito Corleone and Johnny Fontane.

The Balinese Room opened in January 1942 with the big bands of Phil Harris and Val Olman.  It quickly became a prime destination for the rich and famous.  Sam Maceo learned early on how to use celebrity power to boost the appeal of his Balinese Room.  The nation's biggest stars performed there, including Bob Hope, Spike Jones, Peggy Lee, Vaughn Monroe, Duke Ellington, Mel Torme, Tony Bennett, and Edgar Bergen. 

Oh, plus some guy named Frank Sinatra.  It is said that Frank Sinatra used his mob connections throughout the years to advance his career.  This led to an interesting tale involving Sinatra and Sam Maceo.  Long known as a ladies man, Sinatra could have any woman he wanted.  Then one day he met a woman who could have any man she wanted... and did. 

Due to his disastrous love affair with notorious femme fatale Ava Gardner, Frank Sinatra's life and career hit rock bottom in 1950.  The publicity about Sinatra's adultery was Strike One.  Music tastes had shifted after the World War. Strike Two.  Ava Gardner left him to chase a Spanish bull fighter. Strike Three. 

Down on his luck with his career in deep trouble, Sinatra landed in Houston while trying to stage a comeback.  Sinatra convinced Houston wildcatter Glenn McCarthy to book him into the Cork Club atop McCarthy's magnificent Shamrock Hotel.

One day, Sinatra and his friend Jimmy Van Heusen drove down to Galveston.  Van Heusen was a composer of many Sinatra hits such as 'Come Fly With Me'.  Sinatra wasted no time pestering crime boss Sam Maceo to book him into the Balinese Room following his Shamrock engagement up in Houston.

Maceo eventually did book Sinatra to sing as the front man for the house band.  While this billing was not quite the star of yore, the breather worked wonders.  Sinatra's extended gig at the Balinese played a large role in his comeback.  Within two years, Sinatra's luck changed.  Once he was cast in From Here to Eternity, Sinatra won an Oscar and was back in the game. 

Although Mario Puzo's Godfather books were supposed to be fiction, many believe those books didn't require much imagination to write.  Some say the story of how the Godfather helped singer Johnny Fontane in Godfather I was a thinly disguised reference to Frank Sinatra.  What they don't say was this scene was based on Sam Maceo as well.

Things changed after World War II.  The Maceo operation began to draw so much heat that Maceo was forced to transfer his operation to Las Vegas, a move highly reminiscent of scenes from Godfather II. 

Say what you will about Sinatra, he was very loyal to his friends.  Sinatra never forgot what Sam Maceo had done for him.  He would one day repay the debt in a very special way. 

 
 


THE DOWNFALL OF GALVESTON

 

There probably never would have been a Vegas if Texas law enforcement had not run Sam Maceo out of town.  Using considerable skill, Sam Maceo made the Balinese Room famous throughout the nation. The impressive list of entertainers who performed at his club underscores Maceo's substantial influence.  Given the prosperity he created and his benign approach, Maceo knew few enemies.  This explains how he was allowed to run vice on the island for three decades with little opposition.

So what went wrong?  World War II didn't help things.  After Pearl Harbor, people weren't exactly in the same mood for partying as they had once been. 

Then the Hotel Galvez across the street became headquarters for an expanded Coast Guard presence to patrol the Gulf of Mexico.  Tourists were forbidden to stay there and the Balinese Room was declared 'off-limits' for the men barracking at the Galvez.  An armed MP was posted at the front of the Balinese to discourage military personnel from sneaking in.  As one can guess, without the Hotel Galvez, business tapered off a bit.  Still, the Balinese remained popular enough.  It quickly regained momentum when World War II was over.  However, Maceo noticed the Texas political climate had changed following the war.  Feeling the heat, in the early Fifties Maceo decided to invest in a new venture known as Las Vegas 'just in case'. 

 

 

For thirty years, the laws that applied to other parts of Texas had not applied to Galveston.  However, after the war, this open-minded attitude seemingly shifted.  Law and Order politicians from other parts of Texas called upon the Texas Rangers to look into the Maceo operation.  The end came in the mid-Fifties when Will Wilson was elected as Texas Attorney General.  He had campaigned to close down Galveston's illegal casinos. 

The entrance of the Texas Rangers into the picture brought on a semi-comic cat and mouse game.  Everyone knew the casino was operating in violation of the law and that the club’s illegal gambling made it a hub of mob activity.  The problem was catching them in the act.

The Rangers set up shop in a hotel near the club and raided the casino often.  But their efforts were thwarted by the length of the pier.  Upon their arrival, the band would play the well-known song 'Eyes of Texas'.  This alerted dealers and waitresses at the back to start a well-rehearsed cover-up.  They were so fast, by the time the Rangers ran down to the tail end of the long corridor, the evidence was gone.  Tables, cards and chips had vanished into secret wall and floor pockets.

The Rangers eventually found an easier way to shut the club down.  First they gave up trying to catch anyone.  Then, taking a page out of the MP technique used during the war, the Rangers sat in the casino all day long till it closed at night.  Intimidated by the Rangers’ presence, the customers stopped coming.  The Balinese went out of business in 1957.

Sam Maceo was long gone by this time.  As investigation into Maceo's activities grew more serious in the late Forties, Maceo was fed up with the interference.  Frustrated by the constant need to keep his extensive gambling activities under wraps, Maceo turned his eyes elsewhere.  At this point Maceo decided to move his empire to Nevada.  He became a major player in a new mob venture known as 'Las Vegas'. 

Maceo became the leading investor in the Desert Inn, a new Vegas casino which opened in 1950.  At the time, the Desert Inn was the largest and most elaborate casino resort on the Las Vegas Strip.  Sam Maceo knew just who to call to generate action.  Frank Sinatra was a loyal friend who enjoyed returning a favor.  Sinatra's fame helped Maceo get the Desert Inn off to a great start.  What goes around comes around.

Sam Maceo once said that if Texas would just legalize gambling, he could have made Galveston bigger than Havana and Las Vegas combined.  Too bad the State of Texas wasn't listening.  Otherwise they would have supported Maceo instead of running him out of town.  Vegas might have still hit it big, but Galveston was already smoking hot.  If Maceo had been allowed to run things his way, major mob money would have gone directly to Maceo's lucrative Galveston playground.

One can only wonder what Galveston would be like today if Sam Maceo had gotten his way.  Despite his best efforts, Maceo was never able to find a way to get gambling legalized in Texas.  Galveston's loss turned into immense good fortune for Las Vegas. 

What a shame.  Look at Las Vegas is today.  Houston could have been the next door neighbor to the largest resort center in the country.  Considering Houston doesn't have a clue when it comes to attracting tourism, the two cities could have established a fabulous relationship. 

Oh well, so much for the fickle finger of Fate.

 
 


GHOST TOWN

 

People say the day Sam Maceo left town was almost as bad as the day the Great Storm hit.  The death count was missing, but the damage to the economy was painful. Once the Texas Rangers turned out the lights, Galveston plummeted rapidly.  Without the Velvet Glove, things were never the same.  Vegas became a boom town and Galveston became a ghost town.

The closing of the Balinese in the mid-Fifties marked the end of an era.  Prostitution was gone.  Forty-seven clubs, brothels, and vice establishments were reportedly closed and 2,000 slot machines were destroyed.  Though officials claimed to have destroyed all the gaming equipment, that was nonsense.  Most of the equipment had simply been shipped to Las Vegas before the authorities ever discovered it.  Either way, it didn't matter.  The Port had never bounced back and Tourism was completely eliminated.  The empty hotels were bleeding money and put up for sale.  No one bought them.  Beautiful homes were put up for sale.  No one bought them. 

Law enforcement bragged that they had rid Galveston of organized crime.  What a joke.  As they say, be careful what you wish for.  All along Galveston had thought it had a serious crime problem, but now that Sam Maceo was gone, they learned what real crime was. 

A far more dangerous criminal element entered the vacuum created by Sam Maceo's departure.  Taking advantage of Galveston's history of lax law enforcement, street gangs brought drugs and armed robbery to the city.  The thugs ruled, a behavior unheard of in the Maceo Era. 

The outside forces that killed the Golden Goose doomed Galveston to difficult economic times in the 50s, 60s and 70s.  The city suffered the humiliation of steep decline into urban decay.  With little activity at the Port and Tourism limited to day trippers from Houston heading to the beach, economic activity remained anemic for thirty years.  

Thirty years is a long time.  As the years passed, the magnitude of losing Sam Maceo became more apparent.  You don't know what you've got till its gone.  The population declined as people moved to Houston and elsewhere in search of employment. 

With a greatly diminished tax base, services were curtailed.  This led to another serious problem.  Now the beach became ugly.  Seaweed and dead fish were left to rot in the hot sun.  The place smelled and litter was not picked up regularly.  Poor police presence allowed lowlifes to make the beach unpleasant for families to visit with their drinking and loud music.  Thugs roamed the beaches.  Unchallenged by authorities, they accosted tourists and vandalized cars.  As rumors of poor beach conditions made their way to Houston, fewer people bothered to make the trip down.

Another blow came when Houston's millionaires lost interest in the beautiful old homes of Galveston.  Once the area's popularity was gone, the old homes were either left to rot or sold for pennies on the dollar.  Hundreds of magnificent Victorian style homes and buildings were allowed to decay. 

The conditions were bad and there was not much hope the situation would change.  There was no reason whatsoever for tourists to visit and Houston had stolen all the shipping long ago.  By the time the Seventies rolled around, Galveston was in deep trouble.  With homes crumbling before their eyes, the last vestiges of Galveston's great past were disappearing. 

About this time, a very bad joke was being passed around.  During the Great Storm, there was a story about several men who were last seen clinging to a flimsy board in the flood waters.  The desperate men appeared to be trying to reach the sturdy Tremont Hotel, one of the few tall spots standing.  Apparently they drowned in the deep waters just short of reaching safety.  Legend has it that their ghosts took up residence in the Tremont Hotel. 

One day the paper printed an off-hand comment that the spooky ghosts in the Tremont Hotel had not bothered to scare anyone for quite some time.  Did anyone know where they went?  The local comedians had a field day.

Galveston was so dead, even the dead people didn't want to stay. 


 

 

 


BROTHER AND SISTER

Chapter FIVE:  GEORGE AND MARIA

 

 

 
 
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