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
Free State of Galveston of the commission. 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