Seattle was first incorporated by the Washington Territorial Legislature in 1865, with a population of 350 and an economy based on timber. The Fourth of July celebration depicted in this photo would have been the first for the new city, as well as the first after the end of the Civil War. Pioneers pose in front of a foliage-covered structure, with "Welcome" signs, and flags flying overhead, in the Pioneer Square neighborhood near what is now First Avenue and James Street. To the right is the first of two versions of the early Occidental Hotel, a wooden structure which was replaced by a masonry building around 1884. This second Occidental Hotel was destroyed in the Great Fire of 1889, and the Hotel Seattle was built in its place.