Ohio's 54-year-old governor, Robert Lucas (the 1800s equivalent of Methuselah), took exception with a map presented by Michigan, mainly because it included the port city of Toledo, which happened to sit in a tiny strip of land that both states wanted.
Instead of saying, "Sure, are you kidding? Take it!" Michigan would not back down.
The young Stevens and the seasoned Lucas would wage a turf war over the territory, which later became a slightly more actual war. In March of 1835, Ohio sent about 600 militia north to the disputed Toledo Strip. Michigan responded with about 1,000 men who occupied Toledo and prepared for invasion.
The federal government (under President Andrew Jackson), realizing the situation was about to get stupid, sent representatives to tell everybody to calm down until they could figure out where the border was. The peace lasted a few weeks, when Ohio's governor sent out a survey team to again paint a dotted line where they thought the border should be.
The Michigan militia would have none of that shit, so 50 or 60 of them attacked the survey team in what would be called the Battle of Phillips Corner. Shots were fired. Nobody was killed, but they took nine of the survey team prisoner.
Further details can be found on a slab of wood in the middle of nowhere.
Now that pissed everybody off. Both sides started rapidly building up their militias in preparation for all-out civil war. Ohio raised 10,000 men. A Michigan newspaper then welcomed them to enter the Toldeo Strip and find "hospitable graves" there.
President Jackson, again hoping to put an end to the bullshit, removed the governor of the Michigan territory (again, there were just no rules at all back then) and replaced him with a guy named John Horner. The people flew into a rage, burned Horner in effigy and pelted him with vegetables when he entered the capital. A few months later, voters held an election and brought the other guy back.
Finally, Jackson told Michigan they could become a state... if they would just give up that freaking little strip of land. Michigan said hell no. Then Jackson announced the government was giving away $400,000 to all of the states. And Michigan could get in on that... if they accepted the terms. Realizing they were now broke--due to paying for a huge militia to fend off freaking Ohio--they finally gave in.
The first "stimulus" was born, turning Michigan into the modern economic powerhouse it is today.
And oh by the way: Toledo War is the basis for the storied Michigan-Ohio State football rivalry.
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