[2] The first settlement in the Skagit River forks area was in 1868, when a small trading post was established there by a man named John Campbell.

This series of logjams was later destroyed, allowing ships to travel further upstream, which also spelled the end for Skagit City.

The person killed was John Barker, and initial suspicions led to the hanging of two Indians as it was reported that a group of Native Americans had set up camp on the bank of the North Fork Skagit River directly across from the fledgling town.

They did not continue upriver, and Campbell was tricked into returning to Skagit City by a false letter by James O'Loughlin, the owner of a tin shop in the settlement.

Although its superstructure was destroyed in the collision, it was refloated in 1889 by Joshua Green and partners, who had founded the La Conner Trading and Transportation Company.

A ferry and many other boats would dock in the extensive harbor of Skagit City, which occupied a wide and deep river channel.

At its height, the city had many public buildings among its shops and houses, which included a church, hotels, a school, and a saloon.

The removal of the logs allowed the upstream community of Mount Vernon, Washington to prosper, while Skagit City gradually lost its residents and businesses.

This part left in a body, blocking up the courses of the river, so that steamers could not enter until it was removed, which took about two months of their time.

[8] -Eldridge Morse, The Northern Star, 12 June 1878 Throughout 1877, floods on the Skagit River tearing through the newly excavated channels carried away more and more logs from the slowly dissipating jams.

[9] The clearing of the logjams led to the increased settlement of Mount Vernon, approximately 3 miles (4.8 km) upstream of Skagit City.

The old Skagit City School still stands at 1552 Moore Road; it served the area from 1902-1940 and Ronald Holttum bought the building and property in 1943.