Sehome had adjacent borders and both towns wanted to merge; thus they formed New Whatcom. Later on October 27, 1903, the word "New" was dropped from the name, because the Washington State legislature outlawed the word "NEW" from city names, making it into simply "Whatcom". At first, attempts to combine Fairhaven and Whatcom failed, and there was controversy over the name of the proposed new city. Whatcom citizens wouldn't support a city named "Fairhaven", and Fairhaven residents wouldn't support a city named "Whatcom". They eventually decided to use the name "Bellingham", which remains today. Voting a second time for a final merger of the four towns into a single city, the resolution passed by 2163 votes "for" and 596 "against".
In the early 1890s, three railroad lines arrived, connecting the bay cities to a nationwide market of builders. The foothills around Bellingham were clearcut after the 1906 San Francisco earthquake to help provide the lumber for the rebuilding of San Francisco. In time, lumber and shingle mills sprang up all over the county to accommodate the byproduct of their work.
In 1889, Pierre Cornwall and an association of investors formed the Bellingham Bay Improvement Company (BBIC). The BBIC invested in several diverse enterprises such as shipping, coal, mining, railroad construction, real estate sales and utilities. Even though their dreams of turning Bellingham into a Pacific Northwest metropolis never came to fruition, the BBIC made an immense contribution to the economic development of Bellingham.
BBIC was not the only outside firm with an interest in Bellingham utilities. The General Electric Company of New York purchased Bellingham's Fairhaven Line and New Whatcom street rail line in 1897. In 1898 the utility merged into the Northern Railway and Improvement Company which prompted the Electric Corporation of Boston to purchase a large block of shares.
Bellingham was also the site of the Bellingham riots against
