Reply #1: Michigan got the UP as part of compromise.

[livvy]

When Michigan was ready to become a state, there was one detail that was holding matters up. Both Michigan and Ohio claimed a small strip of land near Toledo. Disagreements over the Toledo Strip led to what was called "The Toledo War", although no real battles ever took place. I think the worst it ever got was a couple of fist fights, however both sides were ready to take it further. Washington stepped in and offered a compromise. Michigan would get the land that is the UP, and Ohio would get the strip. Although Michiganians weren't pleased with the deal at the time, they knew it was the only path to statehood, so they took the deal. It turned out to be a pretty good one, eh?