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The clash between Ohioans and Michiganians that took place in 1835 has been called the "Toledo War". Since the city of Toledo was not chartered until 1837 and since the fracas was not actually a war, the term "Toledo War" is a misnomer. Because this issue is quite complicated, here's the "Cliff Notes" of the Toledo War:
Statehood was snagged on a bitter dispute about Michigan’s southern boundary. The question became hot after Ohio revived it in 1832 by deciding to create a city (now Toledo) at the mouth of the Maumee River in the "Toledo Strip." Both Michigan and Ohio called out the militia and issued thundering proclamations in the comic-opera "Toledo War." The country was amused, but the administration at Washington squirmed with embarrassment and hastily dispatched peace commissioners. An act of Congress in 1836 admitted Michigan on condition that the Upper Peninsula be accepted instead of the "Toledo Strip," which would be awarded to Ohio. The administration of President Andrew Jackson could hardly risk offending the Buckeyes with a national election just around the corner! The Michigan Constitutional convention had tried to head off losing the "Toledo Strip" by publishing an appeal to the American people. But it was a losing battle, for Michigan could scarcely win against the dominant influence of the state of Ohio. Her claim was rejected, and the only consolation was the unwanted Upper Peninsula (which later, however, proved to be a bonanza of timber and iron ore).
The Ordinance of 1787, which created the Northwest Territory, no fewer than three and no more than five states could be made from the area. If five states were created, they were to be divided in two tiers separated by an east west line at the very south of Lake Michigan. So this issue was abundantly clear. The land without a doubt belonged to Michigan. However, the maps that were used during that day incorrectly showed Lake Michigan to be much farther north than it actually is. Because of this, the line that was drawn at the southern end of the lake would make Toledo part of Ohio, although wrongly. After the fact, maps would show Toledo to be where it rightfully belonged, which is in Michigan.
The reason that this strip of land was so debated and wanted by both Michigan and Ohio was because Toledo was the planned end point of the Miami and Erie canals. The whole crisis of the Toledo Strip reached its’ height during the 1830’s when this canal was being constructed. It was becoming more aware how rich the region was agriculturally, and by the early 1820’s, it was clear that the potential for agricultural production couldn’t be fulfilled without better transportation. In 1825, legislature passed laws to build navigable canals. The strip of land was narrow, but Toledo was located conveniently on the mouth of Lake Erie. So, both places clearly wanted this land, as small as it was.
The crucial issue of this "war", so far as Ohio was concerned, was whether the mouth of the Maumee River (then called the Miamis of the Lake) should be in Ohio or Michigan. Numerous projects for the building of canals were being advanced, and the outlet of one entire system of such canals would be the Maumee River. In sum, the state of Ohio had envisioned that the city of Toledo would be a major metropolis, connected via canals to the Mississippi, and thus they did not want to lose this city (or the Maumee River mouth) to Michigan.
The origin of the dispute between Michigan and Ohio dated back to the Ohio constitutional convention of 1802. There is a story to the effect that a hunter who happened to be present asserted that the southern end of Lake Michigan was actually further south than was indicated on the maps of the time.
Congress admitted Ohio to the Union in 1803 under this constitution but with no specific assent to the change stipulated in the boundary proviso. In 1805, when the territory of Michigan was established, Congress provided that its southern boundary should be that set forth in the Northwest Ordinance, completely disregarding Ohio’s claims. The Northwest Ordinance originally stated that the northern boundaries of Indiana and Ohio was to be the southern tip of Lake Michigan.
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