Port of Galveston Port Arthur. Some businesses threatened to pull out of Galveston completely if the port wasn't reopened. Governor William P. Hobby declared martial law and sent the Texas National Guard to take control of the city and the port. The city was under martial law until January 1921, when the longshoreman agreed to return to work for a salary increase that was less than they had sought. Later that decade, the port of Galveston became a major sulphur exporter. As the oil industry expanded in Texas, no pipelines were built to Galveston. The Intracoastal Canal opened in 1933. For several years
Galveston, Texas the plan to raise much of the existing city to a sufficient elevation behind a seawall so that confidence in the city could be maintained. The city developed the city commission form of city government, known as the "Galveston Plan", to help expedite recovery. Despite attempts to draw investment to the city after the hurricane, Galveston never returned to its levels of national importance or prosperity. Development was also hindered by the construction of the Houston Ship Channel, which brought the Port of Houston into competition with the natural harbor of the Port of Galveston for sea traffic. To further