SS Washingtonian SS " Washingtonian " was a cargo ship launched in 1913 by the Maryland Steel Company as one of eight sister ships for the American - Hawaiian Steamship Company . At the time of her launch , she was the largest cargo ship under American registry . During the United States occupation of Veracruz in April 1914 , " Washingtonian " was chartered by the United States Department of the Navy for service as a non - commissioned refrigerated supply ship for the U . S . fleet stationed off the Mexican coast . In January 1915 , after a little more than one year of service , " Washingtonian " collided with the schooner " Elizabeth Palmer " off the Delaware coast and sank in ten minutes with the loss of her $ 1 , 000 , 000 cargo of of raw Hawaiian sugar . In the days after " Washingtonian " s sinking , the price of sugar in the United States increased almost 9 % , partly attributed to the loss of " Washingtonian " s cargo . Lying under approximately of water , " Washingtonian " s wreck is one of the most popular recreational dive sites on the eastern seaboard . Design and construction . In November 1911 , the American - Hawaiian Steamship Company placed an order with the Maryland Steel Company of Sparrows Point , Maryland , for two new cargo ships — and " Washingtonian " . The contract cost of the ships was set at the construction cost plus an 8 % profit for Maryland Steel , but capped at a maximum cost of $ 640 , 000 each . The construction was financed by Maryland Steel with a credit plan that called for a 5 % down payment in cash and nine monthly installments for the balance . The deal had provisions that allowed some of the nine installments to be converted into longer - term notes or mortgages . The final cost of " Washingtonian " , including financing costs , was $ 71 . 49 per deadweight ton , which totaled just under $ 733 , 000 . " Washingtonian " ( Maryland Steel yard no . 131 ) was the second ship built under the contract . The ship was , and was in length ( between perpendiculars ) and abeam . She had a deadweight tonnage of , and , at the time of her launch , was the largest American - flagged cargo ship . " Washingtonian " had a speed of , and was powered by a single steam engine with oil - fired boilers which drove a single screw propeller . " Washingtonian " s cargo holds , providing a storage capacity of , were outfitted with a complete refrigeration plant so she could carry perishable products from the West to the East Coast , such as Pacific Northwest salmon or fresh produce from Southern California farms . Career . When " Washingtonian " began sailing for American - Hawaiian , the company shipped cargo from East Coast ports via the Tehuantepec Route to West Coast ports and Hawaii , and vice versa . Shipments on the Tehuantepec Route arrived at Mexican ports — Salina Cruz , Oaxaca , for eastbound cargo , and Coatzacoalcos , Veracruz , for westbound cargo — and traversed the Isthmus of Tehuantepec on the Tehuantepec National Railway . Eastbound shipments were primarily sugar and pineapple from Hawaii , while westbound cargoes were more general in nature . " Washingtonian " sailed in this service , but it is not known whether she sailed on the east or west side of North America . After the United States occupation of Veracruz on 21 April 1914 ( which took place while six American - Hawaiian ships were being held in various Mexican ports ) , the Huerta - led Mexican government closed the Tehuantepec National Railway to American shipping . This loss of access ( the Panama Canal was not yet open ) caused American - Hawaii to return to its historic route of sailing around South America via the Straits of Magellan in late April . During the U . S . occupation , " Washingtonian " was chartered by the Navy Department to serve as a non - commissioned refrigerator and supply ship for the U . S . fleet off Mexico . She was outfitted for her first voyage at the New York Navy Yard and sailed with of fresh meat for the Navy and the United States Army . " Washingtonian " sailed in a rotation with the commissioned Navy stores ships and . With the opening of the Panama Canal on 15 August , American - Hawaiian ships switched to taking the canal route . In late August , American - Hawaiian announced that " Washingtonian " — her Navy charter ended by this time — would sail on a San Francisco – Panama Canal – Boston route , sailing opposite , " Honolulan " , and sister ship " Pennsylvanian " . " Washingtonian " sailed from Los Angeles in early October with a load of California products — including canned and dried fruits , beans , and wine — for New York and Boston . After delivering that load , " Washingtonian " headed for Honolulu , Hawaii , to take on a load of raw sugar valued at about $ 1 , 000 , 000 . Departing Honolulu on 20 December , " Washingtonian " arrived at Balboa on 17 January 1915 and transited the Panama Canal . Sailing from Cristóbal two days later , she headed for the Delaware Breakwater en route to Philadelphia . Collision . At 3 : 30 a . m . on 26 January , some from Fenwick Island , Delaware , the American schooner " Elizabeth Palmer " was under full sail at on a southwest by south course . " Elizabeth Palmer " s captain saw a large steam vessel , " Washingtonian " , on an apparent collision course ahead , but did not change course since navigational rules of the time required steam - powered vessels to yield to vessels under sail power . The captain of " Washingtonian " , two quartermasters , and a seaman were all on watch and saw " Elizabeth Palmer " , but misjudged the schooner ' s rapid pace . When " Washingtonian " , underway at , did not change course or speed , " Elizabeth Palmer " impacted the starboard side of the steamer , leaving a large hole that sank " Washingtonian " ten minutes later . Less than a mile ( 2 km ) away , " Elizabeth Palmer " , with her jib boom and the top of her foremast stripped away by the impact , began taking on water through her split seams . When it became apparent that the big schooner would sink , her captain ordered her abandonment , and she slowly settled and went down about an hour after the collision . After " Washingtonian " s crew abandoned ship , one crewman , a water tender , was found to be missing and was presumed drowned . " Washingtonian " s 39 survivors and all 13 crew members from " Elizabeth Palmer " were picked up by the passenger liner " Hamilton " of the Old Dominion Line about an hour after the collision , and the ship landed at New York the next day . The collision had repercussions for American - Hawaiian and the world sugar market . The financial impact of the collision on American - Hawaiian , estimated at $ 2 , 000 , 000 , was devastating . Contemporary news reports in " The New York Times " and " The Wall Street Journal " both told of the collision ' s impact on the sugar market . Claus A . Spreckels , president of Federal Sugar Refining , noted that the loss of even such a large cargo would not normally have much effect on the sugar market . However , weather in Cuba , then the largest supplier of sugar for the United States , had reduced that island nation ' s crop by more than 200 , 000 tons . Further affecting the situation was World War I , then ongoing in Europe , which had reduced the tonnage of shipping available to transport commodities like sugar . With all of these factors , the asking price for sugar futures contract s for February 1915 delivery was 2 . 90 cents per pound ( 6 . 39 cents per kg ) a week before " Washingtonian " s sinking , but had risen to 3 . 16 cents per pound ( 6 . 96 cents per kg ) the day after the sinking , a rise of almost 9 % in a week . " Washingtonian " s wreck , a skeletal framework of hull plates and bulkheads , lies upside down in about of water , and is one of the most - visited wreck sites along the eastern seaboard . " Washingtonian " s wreck is a popular night dive , and also a favorite with sport divers for catching lobster .