THE FREE STATE OF GALVESTON:

A TOUR GUIDE’S TALE

While Galveston recovered from the devastation of the 1900 Storm, two things happened to take business away from the Island’s economy.   Oil was discovered at Spindletop in1901and the Houston oil industry was born; then, in 1915, their ship channel opened.  The once-decadent city of Galveston had to find other means of economic development if it were to survive financially. 

Prior to World War I, two brothers from Sicily moved to the island:  the Maceos.   Both were barbers by trade:  the affable Sam, who had trained in New Orleans, worked at the Galvez Hotel, and his more rough-spoken brother, Rosario (Rose), who cut hair downtown.  Even though it was during Prohibition, they offered customers a sip of  “ Red” wine during one Christmas season.  Demand increased, so the Maceos drifted into bootlegging with Dutch Voight in 1921.  

Five years later, the three partnered with downtown gambling don Ollie Quinn to open the Hollywood Dinner Club at 61^st and Ave S.  This first air-conditioned private supper club attracted nationwide attention with its promises of top-name entertainment and gourmet food with a little gambling on the side.  Searchlights beaconed more than 20,000 customers to its ornate Spanish design during the Grand opening, which featured Guy Lombardo and his Royal Canadians.  Other famous entertainers, such as Glenn Miller, the Ritz Brothers, Sophie Tucker, Edgar Bergen with Charlie McCarthy, Phil Harris, Peggy Lee and Jimmy Dorsey found their way to Galveston Island via the Maceos over the next thirty years. 

Within three years, the brothers had cornered the market on the island’s illegal gambling.   Downtown, they opened the Turf Athletic Club with its private back room, which became their headquarters.  The Grotto, the first of many “amusements” on the Seawall, opened at 21^st Street.  As they expanded, the Seawall became a model for the future Vegas Strip with its bathhouses, dance pavilions and supper clubs – all equipped with Maceo ”slots.”  

In 1932, the Grotto was converted to a Chinese restaurant called the Sui Jen (pronounced Swee Rin).  It was remodeled again ten years later after the Hollywood Dinner Club closed.  A 200’ pier, stretching out over the Gulf, was added with a T-head at its end.  Renamed the Balinese Room in 1942, its characteristic private back room was equipped with the most modern gaming equipment and the Maceos invited the rich “High Rollers” from Houston’s oil and burgeoning medical industries to, “Come Down and Play on Galveston Island.”  And they did! 

Everyone knew that illegal gambling was wide open in the city but no authority could or would do anything about it.  Sheriff Biaggne, who served from 1933 to 1957, was called to testify on the floor of the Texas legislature.   When asked why he didn’t close down the Balinese Room, he replied that he wasn’t a member of the private club so he couldn’t get in.  

Attorney General Will Wilson was elected in 1956 on a pledge to “close down Galveston” using the Texas Rangers.  However, whenever they raided the club, by the time they ran the length of the long pier, everyone was just dining, dancing, drinking and having a good time -- with no evidence of gambling.  A year later, an inside informant alerted the authorities to the “security system,” giving them plan of action.  This time, before the Seawall Rangers stormed the 200’ pier, several took a boat under the T-head, climbed up and stationed themselves strategically at the windows of the private back room. 

Again, the Rangers raided from the Seawall and the “security system” was on:  the doorman pressed a buzzer that sounded in the club, signaling the band to play, “The Eyes of Texas Are Upon You.”  This prompted the patrons to hide their bets.   This time, however, the Texas Rangers at the windows watched as the slot machines disappeared into the walls like Murphy beds, money seemed to drop through the floor, and crap and poker tables were converted into backgammon and bridge in a matter of minutes, before the Seawall Rangers arrived.   With that, all bets were off. 

Galveston’s illegal gambling days may have officially ended in 1957, but the stories go on and on . . .