From Michigan Place Names:
DAMON, Ogemaw County: this lumber town in Foster Township was first settled in 1878 and was named for George G. Damon, of the firm of Cutting & Damon, which operated in the area; Frank W. Davison became its first postmaster on Jan. 27, 1880; the office was closed on Oct. 31, 1907, but was restored from Nov. 16, 1907, to April II, 1911; the town site was abandoned in 1915 [Pen Phil 6:3 Oct 1955; PO Archives).
From Michigan County Atlas:
Settled in 1878, the PO. opened in 1880, named for George Damon of the Cutting & Damon Logging Company. The company completed cutting the area's virgin Pine in the late 1880s. The Davison Brothers bought their interests and built a hotel, a large warehouse, and a 100 foot long general store, which drew trade from miles around. The Davison's finished harvesting the secondary growth forest about 1912, and by 1916 had removed the store and warehouse. By 1925, all of the buildings were gone. The place is immortalized in James Oliver Curwood's story, The Lost City of Damon, published In his book, Green Timber. Mr. Curwood visited the village in 1911 and used it for the setting of his story.
From Wikipedia:
James Oliver Curwood (June 12, 1878 – August 13, 1927) was an American action-adventure writer and conservationist. His books were often based on adventures set in the Hudson Bay area, the Yukon or Alaska and ranked among the top-ten best sellers in the United States in the early and mid 1920s, according to Publishers Weekly. At least one hundred and eighty motion pictures have been based on or directly inspired by his novels and short stories; one was produced in three versions from 1919 to 1953. At the time of his death, Curwood was the highest paid (per word) author in the world.