Free State of Galveston but authorities were never able to make the charges stick, and indeed some sources claim that they were genuinely false. Like much of the country, and particularly Texas, Galveston boomed in the 1920s. But even the Great Depression did not stop Galveston's run of prosperity. Despite the financial ruin that faced much of the country during the Depression, not a single Galveston bank failed and unemployment was almost unheard of. Key business sectors in Galveston during the "Free State" era were casinos and prostitution, in addition to many legitimate businesses. During much of the period, the vice industries provided the
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