History of the Galveston Bay Area the territory's coastal areas, and therefore continued to allow settlers from the United States into the area with the promise of allegiance to Mexico. Austin's son, Stephen F. Austin, established a colony which extended from east central Texas to Galveston Bay and the Gulf Coast. Some of Austin's original "Old 300" settlers, including John Dickson, William Scott, and John Iiams, established homesteads and commercial enterprises around the bay. The Port of Galveston and a permanent settlement were established on the island in 1825 to spur trade. Communities including Lynchburg, San Jacinto, and Campbell's Bayou (founded by one of Lafitte's former
Port of Galveston Galveston Wharf Company took control of the port in 1869. They built a grain elevator in 1875, leading Galveston to become a major grain exporter over the next few decades. By 1878, the port of Galveston was the nation's 3rd largest cotton exporter; they fell to 5th by 1882. Galveston's wealth and great esteem was due in large part to the port's activity. As other areas of the United States began to transition to a more industrial economy, Galveston was unable to compete. The port continued to primarily export agricultural goods. Local leaders often blamed the lack of industrial goods