Early in Traverse City's history, most of its able-bodied men were employed at the Hannah, Lay & Co sawmill. As a "fringe benefit," workers were allowed to help themselves to all the scrap lumber (or slabs) they wanted. Soon an entire neighborhood of homes made from the scrap pine lumber was built on Second and Third streets east of Division St. Known as Slabtown or Baghdad, much of the district was eventually replaced with homes of more permanent construction but some of the original slabs are still present underneath.
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