The great spirit gives the people the red stone pipe
In the past, there was much conflict between the Anishinaabe people. They were fighting amongst themselves and killing each other, taking revenge on each other, and engaging in violence. Gitchi Manidoo saw this and thought to himself, "This is not good. My children should not always follow the way of war."
The Great Spirit called a great council and had all of the tribes come together at the Mississippi River. When everyone had gathered, he took a red rock and started turning it in over in his hands and eventually opened them, revealing a pipe. Then he took the pipe and smoked it, and the smoke made a great cloud in the sky. He spoke in a loud voice, saying "See, my people, this stone is red. It is red because it is the flesh of all the Anishinaabek. Please use it as a means to make peace amongst yourselves.” Then the cloud grew larger and Gitchi Manidoo vanished into smoke himself.
Since this time, the pipe is used to forge peace and to help in making important decisions.
Adapted from MYTHS AND LEGENDS OF THE MISSISSIPPI VALLEY AND THE GREAT LAKES, by Judson (1914)