Stevens T. Mason - First Governor of The State of Michigan

First Governor of The State of Michigan

See also: History of railroads in Michigan#The state fiasco

Although replaced by Horner, Mason was still popular in Michigan. Voters approved a constitution in October 1835 and elected Mason as Governor. However, the U.S. Congress refused to recognize Michigan as a state until the dispute with Ohio was resolved.

In 1836, facing financial difficulties due to Michigan not being recognized as a state, Mason agreed to a compromise reached by the U.S. Congress and agreed to cede the disputed land to Ohio in exchange for the western two-thirds of the Upper Peninsula (Michigan already included the eastern third). A convention in September 1836 refused to go along with Mason, but Mason finally prevailed in a second convention in December 1836. On January 26, 1837, Michigan was admitted to the Union.

In 1835 Mason had initiated an ambitious internal improvements program, which included development of three railroads and two canals (one of which was the Clinton-Kalamazoo Canal). Mason was re-elected in 1837, but the state’s economy soon began to suffer from the effects of the Panic of 1837. Earlier in 1837, Mason had negotiated to fund the internal improvements program through the sale of $5,000,000 in bonds. This arrangement fell apart in 1837 and following bankruptcies by both the company building the canal and the bank backing the loans, the state was left with over $2,000,000 in bad debt. During his business trips to New York to finance his internal improvements program, Mason became acquainted with Julia Phelps and the two married on November 1, 1838.

Rather than risking a contentious campaign and the possibility of an embarrassing defeat in the elections of 1839, Mason instead decided to give up politics and attempt a private law practice. His successor as governor, an old political rival, William Woodbridge, was determined to place the blame for Michigan’s financial mess on Mason, and charged Mason with corruption related to the $5,000,000 loan. Mason attempted to defend himself, but his reputation was ruined.