In June of 1882, when the Iron River Mine had shown sufficient promise of producing large quantities of ore, R.L. Selden and his son, William H. Selden, along with partners Dr. Louis D. Cyr of Negaunee and Louis Stegmiller, an Escanaba jeweler, decided to plat a village of land east of Iron River Mine, at the top of a hill overlooking the Iron River valley. John V. Suydam was engaged to make the surveys, assisted by Lafayette McQuown. The new village was named Stambaugh in honor of John Stambaugh, president of the Tod, Stambaugh Company of Youngstown Ohio, which had recently acquired rights to the Iron River Mine. A township taking the name of the new village was set aside from Iron River Township in 1886.

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