The University of Michigan | Page 6

admitted to the Union.
For the most part the story of the land grants under this provision is an unfortunate one of speculation, misappropriations, and sale by venal Legislatures, whose only excuse was probably their inexperience and lack of vision; and the natural desire of the people to benefit at once from the endowment these lands represented. Michigan had her troubles in common with the other new states, but she did manage to acquire enough from these lands eventually to give the University needed support in her very lean early years. Their history, therefore, is not without interest. When Indiana territory was divided by Congress in 1804 into the three districts corresponding to the present states of Indiana, Illinois, and Michigan, one township was reserved in each for a seminary of learning. This, in Michigan, was increased in 1826 to two townships, which might be located by sections in any of the districts surveyed. Even more important was a measure approved by Congress in 1836 which permitted the State to control the selection, administration, and even eventual sale of these sections with no reference to the limits of the Congressional townships, thus permitting their consolidation into one state fund. This precedent has been followed by all the states entering the Union since 1837.
The plan of making a state trust of the public lands was a good one--on paper. But with the rapidly growing population, envious eyes were soon cast on these tracts by immigrants, many of whom settled on these sections as squatters, to make endless trouble in the future with their conflicting claims. The first lands definitely set aside were selected by the Trustees of the old University of Detroit in 1827 within the limits of what is now the city of Toledo. The selection could not have been better, consisting in all of some 960 acres, but most unfortunately the best part was exchanged in 1830, on the representation of land-sharks, for poorer land and the land thus received was sold four years later for $5,000. The remainder was disposed of fifteen years later for about $19 an acre, bringing to the University a total of some $17,000 for land which eventually came to be worth, literally, millions. Meanwhile other tracts were being located in all the counties of the State then organized. Soon after Michigan became a state, the Superintendent of Public Instruction made an inventory of these which showed that at $15 an acre they would bring a fund of $691,200 and an annual income to the University of $48,384. At $20, which he thought might easily represent their value, they would bring an annual income of $64,912. The first sale justified his optimism, as the price averaged $22.85 an acre, though only one-fourth of the purchase money was paid in cash. But the people of the State soon began to murmur; they were not interested in continuing these big reservations of choice land for an object so remote as a university. The Superintendent of Public Instruction, moreover, found himself involved in all kinds of trouble with the purchasers. The matter finally came up to the Legislature under the guise of a bill for the relief of certain settlers on university and other state lands, which would have thrown these sections on the market at a nominal price and insured the squatters permanent tenure. The bill was a short-sighted and vicious one and was promptly vetoed by the young Governor, Stevens T. Mason, because he felt these lands were given to the State as a sacred trust. In this courageous action he performed one of the greatest of his many services to the University.
But the Legislature had a different idea as to the sacredness of the trust. Various measures were passed, lengthening the time of deferred payment, successively lowering the minimum price at which the lands were to be sold and eventually in 1841 making the minimum price of $12 retroactive. Under this measure, $35,651 were actually returned or credited to purchasers. When the lands were all sold the average price realized was not quite $12 an acre, resulting in a fund of some $547,000 from which the University now derives an annual income of $38,433.44. While this amount is by no means as large as was hoped for in those early days, this income, if it had been available in the first years, would have helped the struggling institution materially.
To most of us this dissipation of what might have been, with more careful and conservative management, a magnificent endowment seems almost a tragedy. But there is another side. Michigan was far more fortunate in her disposal of these public lands than any of her contemporaries and obtained more than twice the amount realized from any other state lands in the Northwest. For example, Wisconsin only realized