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
Port of Galveston to export on the city's lack of an adequate water supply. However, when the city water project finished in the early 1890s, industrialization still did not occur. In reality, many companies were hesitant to invest in machinery on an island prone to floods. The nearby city of Houston was able to better attract industry and began positioning themselves as a viable alternative to Galveston. The port survived the Galveston Hurricane of 1900 relatively unscathed, but the railroad connecting the island to the mainland suffered significant damage. In response to the hurricane, city leaders dredged the ship channel to raise the