Free State of Galveston made these businesses increasingly difficult to sustain. By the end of the 1950s, this era of Galveston's history had ended. The island of Galveston, which lies on the Gulf of Mexico, 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. Its downtown was known as the
Free State of Galveston protection. 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 Island and gradually expanded throughout Galveston County with the family owning more than 60 businesses, as well as slot machines throughout the 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 and Sam was even charged,