According to the book Oregon Geographic Names, Woodburn, Oregon was platted in 1871 by J.H. Settlemier.
Settlemier left a large grove of fir trees surrounded by cleared felds. When the railroad come through, their right of way went directly through the middle of the grove. The felled trees and brush were left alongside the tracks until winter, when they were burned. The fire got out of hand and a substantial amount of the standing timber was destroyed, along with the brush, hence the moniker Woodburn.