Galveston Storm of Sept 8, 1900 Term Paper

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Isaac's Storm

The Galveston City is a narrow island adjoining the Galveston bay. Marked by its distinct geographical position its highest point is only 8.7 feet above sea level. This Gulf city was devastated by one of the worst ever storm to strike America on September 8, 1900 claiming the lives of more than 8000 people and total destruction of properties. (Estimated at $30 million in 1900). The hurricane created giant waves up to 8 to 15 feet high and the water from the swelling waves inundated the whole of the city and washed away everything on its path. In the book "Isaac's Storm" Erik Larson describes how Isaac Monroe Cline, a chief staff of the American meteorological department studied the progress of this devastating storm and how it had an destructive effect on the business climate of this once commercially vibrant city. Let us briefly analyze the effects the storm had on the development of Galveston City from a business perspective.

Galveston City (Before the Storm)

The dangerous geographical location of Galveston is very clear from the recounting of Josiah Gregg, one of America's main travelers who wrote as early as 1841 that, "This Island was so fully overflowed that a small vessel actually sailed out over the middle of it." [Erik Larson, pg. 12] Apart from the geographical position (city is very low and close to sea level) Galveston was a grand city which was developing very rapidly. In fact it was a gaining status as a perfect cosmopolitan city with its flourishing business. People from other parts of the United States were beginning to move into Galveston wooed by its natural beauty and opportunities. Galveston was a city where people from all the races were equally represented. By 1900 the city was all set for a status as equal to San Francisco or New Orleans and competing with Houston as a fastest growing business city in the gulf region. In fact the New York Herald Magazine had at that time, described Galveston as the 'New York of the Gulf'.

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Galveston was one of the busiest ports (third) in the country and the biggest cotton port in the whole of the United States. In short it was a rich cosmopolitan city with more millionaires per square kilometer than the other cities like New Port, Rhode Island. Etc. [Erik Larson, p8 13]

Impact of Hurricane

The impact of the hurricane on the corporate sector was not the least in any way. The Galveston economy was never fully restored or recovered from the terrible disaster. Galveston, which so far surpassed Houston in attracting business investors, suffered a big loss of confidence on the part of the investors. Oil business flourished in neighboring Houston and this lured the international business community away from Galveston. Furthermore the city which was serving as one of the busiest trading ports in the whole of the United States was experiencing a virtual trading dead lock. Galveston, which was a leading port in cotton exports, suffered a severe loss in that sector also. The greatly successful cotton trade was drastically affected because of the total ruin of the Galveston port. The city lost its position as the leading cotton trader in the country and this affected its economy in a big way. Most of the businesses found the Houston ports and railroads as a much safer alternative communication route. There was total halt in the population growth in Galveston and the city which was once a vibrant business force to reckon with was relegated to a passive roll. Construction sector was also severely affected with no builders willing to invest in the past several decades. However recently the scenario is changing as Jeff Sjostrom, president of the Galveston Economic Development Partnership says, "There's tremendous capital investment that we haven't seen in a decade." [Nancy Sornoff]

Insurance Sector

The insurance sector is one of the most affected by the frequent hurricane disasters. The United States meteorological department has classified Galveston as the most risk prone area for hurricane attacks. Presently Galveston is a city with a.....

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