1938: Michigan

Area and Population.

Officially admitted to statehood Jan. 26, 1837, Michigan ranks 22nd in size among the states, with an area of 57,980 sq. mi. Its shore line extends 1,624 mi. on the Great Lakes. In population it ranks 7th, numbering 4,842,325 according to the Census of 1930; 4,830,000 on July 1, 1937, according to the latest Federal estimate. The largest cities are Detroit, 1,568,662 (1930 census), Grand Rapids, 168,592; Flint, 156,492; Saginaw, 80,715. The capital is Lansing, 78,397.

Of the 1930 population, the foreign-born whites numbered 840,268, the largest groups being as follows: from Canada, 202,316; Poland 119,228; Germany 81,714; and England, 62,721. The increase of total population in the decade 1920-30, was 32 per cent, or 1,713,913. Of the total population in 1930, Indians numbered 7,080; Negroes 169,453. In 1938 the Indian reservations averaged less than 200 acres, with a population of about 1,000.

Agriculture.

Michigan farmers profited materially in 1938 through purchases made by the Federal Surplus Commodities Corporation. During the year farmers increased their gains by about $2,000,000. Michigan has some two hundred thousand farmers with a total farm area of nearly twenty million acres. Cash income from crops in 1938 approached $100,000,000, and from livestock $150,000,000. The Federal-State inspection service proved of great value in marketing crops. Traveling laboratories sent through the state by the State Department of Agriculture in cooperation with the Federal Department were specially helpful in eradicating bovine tuberculosis.

Mineral Products.

Shipments of iron ore, Michigan's leading mineral, in which it ranks next to Minnesota, increased in 1937 by 32 per cent over 1936. They amounted to 12,626,935 tons (value, $41,136,202), compared with 10,491,270 tons (value, $30,721,075) for the previous year. Production of petroleum also showed a substantial increase, from 11,928,000 bbl. in 1936, to 16,628,000 in 1937. The estimate for 1938 is 19,211,000 bbl. Copper production showed a slight decrease, with 94,928,000 pounds for the year. Salt, in which Michigan leads the Union, remained fairly stationary, at 2,476,406 tons. Shipments of cement were also close to those of 1936, amounting to 7,831,880 bbl. with a value of $9,836,999.

Industry.

Michigan ranks first in the Union in production of automobiles, auto-accessories, engines, refrigerators, adding machines, chemical products, drugs and pharmaceuticals. The principal automobile centers are Detroit, Flint, Lansing, and Pontiac. One of the world's largest furniture centers is Grand Rapids. The Dow chemical plant at Midland is world-famed. Battle Creek is noted for its cereal and breakfast food preparations. Kalamazoo is the seat of the world's largest book paper factory. Michigan's three large steel mills increased production in 1938.

Rural electrification made marked strides in Michigan in 1938. Electric cooperatives have been formed covering 43 of the 83 counties of the state under supervision of the Public Utilities Commission. During 1938 they received approximately $5,000,000 from the Federal REA. The result was to spur private companies to increased activity in this field.

Transportation.

Michigan has water communication with a region embracing a population of over thirty million people. The Detroit river in 1938 carried more than the foreign tonnage of New York harbor. The Soo Canal carried more than four times the traffic of the Suez Canal. Michigan's railroads total 7,819 miles. Upwards of 5,000,000 passengers were carried in 1938, and 175,000,000 tons of freight. These lines employed some 45,000 men with payrolls of $65,000,000. Michigan is a recognized leader in airplane and engine production. In 1938 Michigan was the fourth state in the Union in the number of licensed airports, and fifth in the number of airplanes and licensed pilots. A million and a half people own automobiles in Michigan and drive a total of ten and a half billion miles a year over its roads and streets. In 1938 several million dollars were collected from the weight and gas taxes. More than 2,700 miles of road have been improved in the past five years, including nearly 850 miles of concrete. The tourist business is Michigan's second greatest industry. Tourist information lodges are operated by the Highway Department near both the Indiana and Wisconsin state lines.

A notable achievement in 1938 was the completion of another 'bridge of peace' between Michigan and Canada, in the opening of the Port Huron-Sarnia Blue Water international bridge. Renewed agitation for a bridge or tunnel across the Straits of Mackinac to connect Michigan's two peninsulas brought another project somewhat nearer realization.

Conservation.

Michigan's natural resources are under the protection of the State Conservation Department. During 1938 the forestry division operated 12 state forests with an area of over a million acres, reforesting them with varieties of pine. The lands division administered upwards of two and a half millions of state-owned lands, supervising oil and gas leases on state land which yield some three quarters of a million dollars. The division of field administration maintained an extensive organization for control of forest fires.

Education.

With a few exceptions, education in Michigan is compulsory for children from 7 to 16 years of age. The total net expenditure for public school support in 1938 was approximately $100,000,000. During the year, in round numbers, 6,700 school districts had 900,000 pupils, and 32,000 teachers. The enrollments both in secondary and higher education increased in 1937-38. Parochial schools also showed increased enrollment, as did the several denominational colleges.

Social Welfare.

Under Michigan's Unemployment Compensation Act, passed by a special session of the Legislature in 1936, over 150,000 workers received job insurance checks weekly beginning July 1, 1938. Employment offices were established throughout the state to help workers find private jobs. Over 70,000 persons 65 years old or beyond received in 1938 an average grant of about $18 a month. Between these classes a great army of dependents were cared for by the State Emergency Welfare Relief Commission and its 83 county agencies, at a cost of over $40,000,000. On the average, WPA provided work in 1938 for over 150,000 persons every month. The 1937 act of the legislature designed to coordinate the work of the various state relief agencies was submitted to the people at the November polls and was defeated.

Health.

In the field of general health Michigan made much progress in 1938, following a legislative program involving the coordination of activities of all state agencies and organizations concerned with public health. The 1937 law establishing the new State Hospital Commission revitalized Michigan's hospital activities, particularly in behalf of the mentally afflicted. An active state-wide campaign was set afoot to stamp out major social diseases.

Liquor Control.

Michigan's law regulating the liquor traffic is one of the most advanced in the nation. It is administered by the Michigan Liquor Control Commission. As in other years, the aim of the Commission in 1938 was to place the promotion of temperance above the revenue aspect. It directly promoted a campaign, especially among young people, which emphasized the dangers of intemperance. It impressed upon licensees the seriousness of their duty to preserve the high standards set by the state. The state plan is largely a local option system under strict state control. Under the law, 85 per cent of all license fees are returned to the local units for enforcement purposes. Merchandising liquor in state stores is a highly technical sales activity, and netted the state Treasury in 1938 a revenue of approximately $40,000,000.

Finance and Taxation.

Michigan leans heavily upon the 3 cent sales tax for support of government, particularly for the heavy costs of education and welfare. During 1938 the sales tax produced more revenue than any other single source, amounting to nearly $47,000,000. In 1938 there were approximately 100,000 businesses licensed in Michigan. The total state revenue from all sources was in the neighborhood of $200,000,000.

The Public Debt Commission (created in 1932) ably supervised through 1938 the refunding of municipal debts on a basis of ability of communities to make payments. During its operation over 250 municipalities have been brought out of default. The Commission has approved refunding plans of over half a billion dollars. Operations of the Commission are under the direct supervision of the State Treasurer. In 1938 there were on deposit in various banks in the state upwards of $30,000,000 in the name of the State Treasurer. In 1938 the bonded indebtedness of the state was about $75,000,000. The State Treasurer had on hand in securities and cash $50,000,000 in various sinking funds, to retire these bonds when due.

Banking.

Michigan's financial institutions continued to show improvement through 1938. On June 30, 1938, the 83 national banks had deposits of $728,050,000; loans of $155,109,000; investments of $370,381,000. The total deposits in 372 state banks and trust companies were $621,292,606.08; loans amounted to $190,682,136.36; investments, $300,583,299.78. Progressive banking legislation enacted by the 1937 legislature aimed to simplify and regulate the investment of deposits in mortgages, loans and securities, and provided for greater cooperation with the Federal Reserve System and the Federal Deposit Insurance Corporation in the supervision of state chartered banks. A major work of the Banking Department during 1938 was to supervise liquidation of the assets of banks affected by the banking holiday of 1933. During the year approximately $18,000,000 was paid out from these banks in dividends to depositors.

The 1938 Election.

In the state election, November 8, 1938, former Governor Frank D. Fitzgerald, Republican, was again elected governor of Michigan, defeating Governor Frank Murphy, Democrat, by a majority of 93,493. The general opinion was that the public's understanding of Governor Murphy's handling of Michigan's labor troubles sit-down strike in 1937 was one of the principal factors in his defeat. Governor Fitzgerald carried with him all state officials, both houses of the Legislature, and three Congressmen who displaced Democrats. The total vote cast in the election was approximately a million and a half, one of the largest off-year votes in Michigan's history.

At the polls, three constitutional amendment proposals were submitted to the voters: (1) to extend the terms of county officers from two to four years, was defeated; (2) to provide for the appointment rather than the election of Supreme Court justices, was defeated; (3) to earmark weight and gasoline tax revenues for highway purposes, was passed. A referendum on welfare reorganization legislation approved by the 1937 legislature was lost.

State Officers.

As the result of the 1938 election the chief officers of the state are as follows: Governor, Frank D. Fitzgerald; Lieutenant Governor, Luren D. Dickenson; Secretary of State, Harry F. Kelley; Treasurer, Miller Dunckel; Attorney General, Thomas Read; Auditor General, Vernon J. Brown; Superintendent of Public Instruction, Eugene B. Elliott (incumbent).

Judiciary.

Chief Justice of the Supreme Court, Howard Wiest; Associate Justices, Henry M. Butzel, George E. Bushnell, Edward M. Sharpe, William W. Potter, Bert D. Chandler, Walter H. North, Thomas F. McAllister.

United States Senators:

Arthur H. Vandenberg, Prentiss W. Brown.