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The Free State of Galveston: While America fell into depression, Galveston poured another round.

• Galveston Unscripted | J.R. Shaw

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Two Sicilian barbers built an empire of vice, transforming Galveston into the "Free State" where prohibition laws and moral restrictions held no power for decades.

• Texas and national prohibition in the 1920s created a black market for liquor, gambling and prostitution
• Galveston's position on the Gulf of Mexico made it ideal for smuggling and vice operations
• Sicilian immigrants Rose and Sam Maceo rose from barbers to powerful underworld figures
• The Hollywood Dinner Club (1926) and Balinese Room (1942) became world-renowned entertainment venues
• The Maceos maintained order, invested in the community, and kept Galveston economically thriving during the Depression
• The Texas Rangers finally ended the era in 1957 with a brilliant strategy—simply sitting in establishments every night for 2.5 years


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Speaker 1:

While the Great Depression strangled the nation, galveston lit a cigar, poured a stiff drink and doubled down. They called it the Free State of Galveston, not because it seceded, but because no one not Austin, not Washington could tell this island what to do. Gambling, bootlegging and brothels all illegal. But here it was business as usual. And at the center of it all, two Sicilian barbers who built an empire out of vice charm and a little help from the shadows. This is the story of the Macio brothers, the Free State of Galveston and the night. The Texas Rangers walked in and never left.

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In the years after World War I, the United States was fighting a crisis of culture and social expectations. The temperance movement led in Texas by fundamentalist religious groups. They believed that alcohol was the root of most social and individual problems, driving unemployment and destroying families. Many people throughout the country opposed the sale of alcohol, especially liquor, concerned mainly with the impact of alcoholism in American families. Their solution Ban liquor nationwide if possible and if not, at least their local communities. For most of Texas' history, the decision whether to ban the sale of alcohol was left up to individual counties. However, on January 16, 1920, the 18th Amendment to the US Constitution took effect, which banned the production, transport and sale of intoxicating drinks on a national level. Plenty of Texans were persuaded, and that same year they voted for statewide prohibition too. But really, all this total ban did was create a large black market for liquor and all the other fun that comes along with it. In some places across the country, including Galveston, this created new illicit and economic opportunities, appealing to those seeking an escape from these rigid laws. These so-called vice economies centered around illegal activities like drinking, gambling and prostitution, and in Galveston the opportunities were plenty. Two miles from the Texas mainland, galvestonians were able to operate under a slightly more flexible set of rules than the rest of the state. Due to Galveston's port and position along the Gulf of Mexico, the island was a good place to smuggle in liquor, tequila from Mexico, rum from Cuba and everything else from anywhere else.

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Even before Prohibition, galveston had a vibrant underground scene. Poker dens, brothels and rum runners were common under a permissive local government that was willing to turn and look the other way. But people needed extra entertainment to keep the good times flowing while they drank. Card tables and slot machines were set up and quickly became another prominent part of the island's vice economy. On top of the booze and betting. Prostitution also entered the mix, with the island boasting a robust red-light district Throughout the Prohibition era.

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In the 1920s, enforcement was the main issue nationwide, and politicians across the spectrum just couldn't agree on how to handle it. Galveston was already known as a world-renowned tourist destination and, with opportunities that were tough to find around the state, tourists began pouring into the city, flooding the island with cash and bringing the black market to the beachfront. During this time, the island earned the nickname the Free State of Galveston. Listen, someone had to run things around here. Without a firm hand or two, the whole operation could come crashing down, and then no one wins, not even the House. While the rest of the country struggled to adapt, crime syndicates in cities like Chicago and New York grew violent and unpredictable. Galveston took a different route. Here the black market didn't just exist, it thrived openly. The island offered a rare sense of freedom, not just from alcohol bans, but from the moral policing that gripped the rest of the country.

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Enter brothers Rosario and Salvatore Maceo, usually called Rose and Sam. They were born in Sicily in 1887 and 1894, respectively. As children, the Maceo family immigrated to Louisiana in 1901. When the brothers moved to Galveston in 1910,. The two men initially worked as barbers. They eventually teamed up with a group known as the Beach Gang, led by Ollie Quinn and Dutch Voigt.

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The Maceos entered the bootlegging game and quickly rose to power, eventually eclipsing their old allies by the late 1920s. The brothers were ambitious and quickly saw the money to be made from smuggling liquor and selling it on the island. Officially, their reign over the island began in 1926 with the opening of the Hollywood Dinner Club, a glitzy, cutting-edge venue with live radio broadcasts, air conditioning and performances by world-renowned musical acts. The Hollywood Dinner Club set the tone for Galveston, unlike anywhere else in Texas. Generally, sam presented a charming face, while Rose provided the quiet muscle behind the operation. Rose organized a vanguard group nicknamed the Knight Riders to maintain order, ensuring Galveston stayed relatively crime-free and that visiting and local families felt safe, even under Vice's shadow, with Rose's Knight Riders keeping order and Sam charming the guests. Their empire expanded fast as their wealth and influence grew.

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The Macio family developed extensive networks of extortion and political manipulation across the island, the state and the country. With politicians and police in their pockets, the Maceos pretty much ran things in Galveston and, generally speaking, locals accepted this without too much fuss. As the Great Depression tightened its grip on the rest of the country. People were losing their jobs, homes and hope, but in Galveston the vice economy kept food on the table. Locals weren't just tolerating the Maceos. Many welcomed them. They saw jobs, the tourism and the money and the distraction. For those living through economic despair, galveston became an escape hatch, a place where freedom was more than an idea. It was a working business model. Once the Great Depression hit in the 1930s, people were less concerned about the social problems of alcohol and more concerned about the economics of it. In 1933, the 18th Amendment was repealed and the federal government focused its energy on other social and economic programs instead. In 1935, texas repealed statewide prohibition, reverting again to local decision. By this time the Maceos had consolidated their power on the island, focusing on the gambling aspect of their illegal businesses and expanding various legitimate business interests.

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According to local storyteller Bill Cherry, who was close to the Macio family, some trouble started with the Macios in the 1930s when the IRS took notice of something suspicious. The brothers had paid cash for the massive, custom-built, luxury-furnished Hollywood Dinner Club, but according to their own tax returns, that money shouldn't have existed. The federal government looked at the building and said wait a minute. They didn't report nearly enough income to afford all of this. Rather than just jail the brothers, the government negotiated a deal they could keep the Hollywood Dinner Club but never open it for commercial use ever again. The Hollywood Dinner Club officially closed its doors in 1939, but that was okay.

Speaker 1:

The Maceos eventually ran a ton of other bars, casinos and clubs throughout the city. By the 1940s, the Maceo empire included 50 clubhouses and casinos across the island, often extending into Galveston County. The Balinese Room, built in 1942 atop a 600-foot pier extending out into the Gulf of Mexico, was one of the country's most glamorous illegal casinos, hosting Sinatra, bob Hope, duke Ellington and famous acts from around the world. The business of gambling, drinking and smuggling continued to boom for the brothers while these venues were packing out every weekend. While other people did open gambling establishments on the island, they certainly weren't competition for the Maceos, to quote journalist Gary Cartwright. In accordance with the island's live-and-let-live style, the syndicate permitted other gambling joints to operate, as long as their owner understood that they existed, at the pleasure of Papa Rose and Big Sam.

Speaker 1:

Though they may not have been outwardly accepted by Galveston's traditional high society, the Maceo family pumped a lot of money and culture into the community. Historians note the Maceos were widely seen as respectable local businessmen. Unlike cinematic gangsters, they avoided violent gangsterism and often intervened to prevent gambling-related ruin among patrons, especially the locals. After all, due to their power and influence across the island, the brothers were able to keep the worst problems associated with vice economies at bay. In addition, the Macio family invested in the island itself, supporting local businesses and churches and taking an active interest in economic development. Money talks.

Speaker 1:

So even police and authorities tended to turn a blind eye to the island's lawlessness or just hand down light punishments for crimes. State authorities knew what was happening in Galveston but couldn't do much about it. For decades every attempt to interfere was met with resistance, indifference or convenient disappearances. The island operated like its own republic. Some even joked that the state line stopped at the causeway. That idea that Galveston played by its own rules wasn't a secret. It was the appeal. Even if raids were conducted, gambling machines and card tables mysteriously vanished into secret compartments just before the police arrived. For many years these cat-and-mouse games were mostly a formality, keeping things interesting for owners, operators, police and partygoers. The Maceo brothers maintained control of the operations for nearly 30 years, until their deaths in the 1950s. Sam died in 1951 and Rose just a few years later, in 1954. Direct and extended family members inherited the operations.

Speaker 1:

Galveston had become a world-renowned destination for gambling, drinking and prostitution. However, gambling and prostitution were still illegal in Texas and after 30 years of turning a blind eye, it couldn't be tolerated anymore. That just wasn't the reputation the state wanted to project and many people, especially in the state government, didn't appreciate the island operating with such impunity. In 1957, the curtain finally came down. Texas Attorney General Will Wilson sent in the Texas Rangers to close the casinos, brothels and bars, but not in the way Hollywood might script it.

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Captain Johnny Clevenhagen, with the Texas Rangers, a towering figure in law enforcement, led Company A into Galveston and instead of smashing doors and lighting up sirens, they used something more disruptive a dinner reservation. The Texas Rangers simply walked into the Balinese room. Each day when it opened, they sat down, ordered dinner, drank coffee, watched the show and stayed until closing. They did this every single day for two and a half years. To make the point crystal clear that law and order was coming to Galveston, they moved into the Buccaneer Hotel across the street with Rangers filling seats night after night and, of course, with the Rangers there, there wasn't much gambling going on and absolutely nothing that the Bellanese Room could do about it. Who else could gamble with the Texas Rangers sitting there? Captain Johnny Cleveland Hagen had done what no other lawman before him had been able to do he waited out and shut down the gambling operations at the Bellanese Room.

Speaker 1:

Undercover agents infiltrated the establishments across the island in order to catch them in the act. By June 1957, 47 different places were forced to close their doors. That quiet siege was the final blow. The Bellini's Room and dozens of other clubs couldn't survive the rangers breathing down their necks. Galveston's open era was over. According to the Rosenberg Library Museum, hundreds of slot machines and gambling tables were smashed to pieces and thrown into Galveston Bay. Stashes of weapons and business records were also confiscated. Most of the clubs, gambling parlors and brothels were shuttered for good. By this time, the family had diversified into real estate and other business ventures around the United States, including one little town known as Las Vegas. Over the past 50 years, many of these buildings have been destroyed by storms or torn down to make way for new construction, but the legacy of the island's open era can still be seen throughout Galveston, even if many of the buildings themselves don't exist anymore.

Speaker 1:

The vice economy built and controlled by the Maceos sustained Galveston through many years while the rest of the country plunged into the Great Depression. The power and the economic influence of the Maceo family especially allowed the island to flourish when most of the US was floundering. For 30 years, the state of Texas largely stood by, unable or unwilling to challenge the Maceo operation, largely stood by, unable or unwilling to challenge the Maceo operation. Galveston had money, power and a surprising amount of public support, especially compared to the rest of the state where the depression had hollowed out entire towns. The island's open defiance of state law wasn't just tolerated, it was practically tradition. Freedom, for better or worse, was part of the brand. That sense of freedom, of carving out your own path no matter what the law said, still echoes through the seawall. Galveston may no longer be the free state in name, but in spirit. That legacy has never gone away.

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J.R. Shaw

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