The first known settlers in this area were John McGaffey and Thomas Courts, who arrived in 1832. Sam Houston assisted Manuel de los Santos Coy in acquiring a land grant here in 1833. Two years later Houston and two partners purchased Coy's property holdings. On January 19, 1839, Gen. sam Houston signed the charter that established the city of Sabine. Houston was active in promoting the sale of 2,060 town lots. The city soon flourished. Houston and his partners lost title to the town when the General Land Office determined that John McGaffey held original claim to the lands. The city of Sabine developed into a major port. In 1860 the State Legislature, in approving a new charter for the city, changed the name to Sabine Pass. It was the scene of a major Civil War engagement in 1863, with Confederate forces preventing a Union attempt to capture the port and gain major inroads into Texas. The Federal Harbor Act of 1882 led to construction of jetties here and development of inland ports along the Neches and Sabine rivers. By the early 20th century Sabine Pass began to decline due to hurricane damage which prevented railway maintenance.